Benzinga | Jun 3, 2021 12:42PM EDT

Merck Completes Women's Health Organon Spinoff

* In a move to free up a cash windfall and streamline the business, Merck & Co Inc (NYSE:MRK) had long planned to slice away its women's health business into a standalone spinoff.

* As of Thursday, that spinoff, dubbed Organon, is now a public entity all its own. Organon & Co. (NYSE:OGN) debuted on the NYSE.

* As a part of the spinoff, Merck will receive a $9 billion special tax-free dividend that it will use for a future acquisition.

* Organon is focused on Nexplanon, a long-active reversible contraceptive that has a patent expiring in 2027.

* Last year, its sales were around $680 million. The company said it could boost sales to more than $1 billion in 2021.

* Price Action: MRK shares are down 3.3% at $73.36, while OGN is down 4.6% at $33.63 during the market session on the last check Thursday.