The standard treatment for endometriosis includes anti-inflammatory drugs followed by systemic hormone therapy. Forendo Pharma is developing a new method that can provide more targeted treatments.The company’s endometriosis drugs are still in the trial phase, but the Organon spin-off from Merck sees enough hope get Start thoroughly.
Organon announced on Thursday that it will pay $75 million in advance and assume Forendo’s debt of approximately $9 million. The Jersey City, New Jersey-based company also agreed to make milestone payments that could reach $270 million. If endometriosis drugs enter the market, the commercialization milestone may bring in $600 million in revenue. The Forendo acquisition agreement is Organon’s third women’s health deal since its spin-off from Merck in June.
Endometriosis is a condition in which the endometrium, called the endometrium, grows outside the uterus and causes pain and fertility problems. Forendo of Turku, Finland aims to treat endometriosis by interfering with the abnormal growth of endometrial cells. The company’s drug FOR-6219 is a small molecule designed to target an enzyme called type 1 hydroxysteroid 17-beta dehydrogenase (HSD17B1). Doing so will inhibit the conversion of estrone into a highly effective estradiol, another hormone that regulates the growth of endometriotic tissue.
Most endocrine treatments focus on hormones that affect systemic circulation. According to Forendo, its medicine is different from currently available treatments because it has a local effect, acting in target tissues without affecting the hormones circulating throughout the body. Forendo calls its method “internal learning”. According to Organon and Forendo, the targeting effect of FOR-6219 means that it can be studied as a long-term treatment for endometriosis. The drug is preparing for the second phase of testing.
The Forendo pipeline also includes drug candidates for polycystic ovary syndrome, which is associated with metabolic disorders, hyperandrogenism, and infertility. There is no FDA-approved treatment for this condition. Forendo’s experimental drug is a targeted therapy designed to block the enzyme HSD17B5 and is in the preclinical stage.
Organon is composed of the former women’s health business and Merck’s generic drugs. The pharmaceutical giant announced last year that it will place these drugs in a new business that will be spun off as an independent public company. The spin-off was completed in June. At that time, Organon completes its $215 million acquisition of Alydia Health, A start-up company that commercializes medical equipment for the treatment of postpartum hemorrhage.July, Organon Obtained global license of ebopiprant, A potential treatment for preterm birth, is currently in the mid-clinical development stage.
Organon expects to complete the Forendo transaction next month. The transaction was announced before Organon released its third-quarter financial results, the company’s first full quarter since it left Merck in June. Of the company’s total revenue of US$1.6 billion in the third quarter, women’s health accounted for US$381 million. Organon’s profit during this period was 323 million U.S. dollars.
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