A spinoff is a company or organization that has been created as a result of another existing business. It can also refer to a new product, service or technology that has been derived from an original idea or invention. The term often used when referring to companies that have been split off from their parent company, usually through an initial public offering (IPO) on the stock market. Spinoffs are common in industries such as pharmaceuticals and consumer products where new product lines can be created by leveraging existing resources or expertise of the parent company.