The laboratory, which employs 2,175 staff, has been on the market since September last year when Merck decided to halt plans to close the unit after pressure from the works council.
The US firm told the Dow Jones newswire that while it has spoken with a number of parties interested in acquiring the R&D unit it has “concluded they could not support a possible transaction."
Reuters also reported the news citied speculation that Aspen Pharmacare, Takeda and Pantarhei had been among the bidders.
MSD-Organon told news service that it “is now looking at whether it can retain any of the R&D jobs within Merck... [and] Organon's drugs and biologics business will remain an important part of the company.”