v3.26.1
Third-Party Arrangements
 3 Months Ended
Mar. 31, 2026
Related Party Transactions [Abstract]  
Third-Party Arrangements Third-Party Arrangements
On June 2, 2021, Organon and Merck entered into a Separation and Distribution Agreement (the “Separation and Distribution Agreement”). Pursuant to the Separation and Distribution Agreement, Merck agreed to spin off the Organon products into Organon, a new, publicly-traded company (the “Separation”).

The Separation was completed pursuant to the Separation and Distribution Agreement and other agreements with Merck related to the Separation. As of March 31, 2026, only one jurisdiction remains under an Interim Operating Model Agreement.

Under the manufacturing and supply agreements, the Company manufactures certain products for Merck, or its applicable affiliate, and Merck manufactures certain products for the Company, or its applicable affiliate. For details on the rights and responsibilities of the parties under the agreements, refer to Note 17 “Third-Party Arrangements” to the audited Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

The amounts due under such agreements were:
($ in millions)March 31, 2026December 31, 2025
Due from Merck in Accounts receivable
$158 $98 
Due to Merck in Accounts payable
350 337 
Sales and cost of sales resulting from the manufacturing and supply agreements with Merck were:

Three Months Ended
March 31,
($ in millions)20262025
Sales $13 $18 
Cost of sales 11 16