Dive Brief:
- Laborie Medical Technologies has struck a deal to buy a post-childbirth medical device from Organon for $440 million upfront, the companies said Friday.
- The acquisition covers the Jada system, a treatment for abnormal postpartum uterine bleeding or hemorrhage, and around 100 employees who will transfer to Laborie as part of the deal.
- Organon acquired the system in 2021 for an initial $219 million. The women’s health specialist grew sales from $20 million in 2022 to $61 million in 2024 as more hospitals stocked the system.
Dive Insight:
The separation of the placenta from the uterine wall after childbirth causes bleeding. Typically, the uterus contracts to compress open blood vessels and stop the bleeding. However, the uterine fibers fail to contract after some births, resulting in uncontrolled bleeding. Standard treatments include balloons that are inflated in the uterus, applying pressure to slow or stop the bleeding over 12 to 24 hours.
Jada is a potentially faster-acting alternative to balloon tamponade. The device consists of a silicone loop that is put in the uterus. The loop contains vacuum pores. When connected to a vacuum, Jada can cause the uterus to contract and stop the bleeding.
The system controlled abnormal bleeding in 100 of 106 patients in a clinical trial. The median time to the control of abnormal bleeding was three minutes. After seeing the data, Organon bought Alydia Health to acquire the Jada system. The FDA granted 510(k) clearance to Jada four months after Organon closed the deal.
Organon tripled sales of the system from 2022 to 2024 and, having reported revenues of $33 million at the midpoint of 2025, is on track to grow sales again this year. The company has agreed to sell Jada to Laborie to generate funds for paying down debt. In addition to the $440 million upfront, Laborie has agreed to pay up to $25 million based on meeting 2026 revenue targets.
The companies said the sale price reflects the launch of Jada and the expansion of the U.S. business. Kevin Ali, then the CEO of Organon, said on an earnings call in May that 94% of the largest U.S. birthing hospitals stock Jada. Ali resigned late last month after an investigation into wholesaler sales practices for another Organon product.
Buying Jada adds to the string of Laborie deals since Patricia Industries bought the Canadian medtech company in 2016. Laborie agreed to buy Clinical Innovations in a $525 million deal in 2019 and bid $225 million upfront for Urotronic in 2023. The company also bought Pelvalon, GI Supply and Novonate for undisclosed sums.
