Organon Reports Results for the Third Quarter Ended September 30, 2024
Organon (OGN) reported strong Q3 2024 results with revenue of $1.582 billion, up 4% as-reported and 5% at constant currency. The company achieved net income of $359 million and diluted EPS of $1.38. Women's Health revenue grew 5%, Biosimilars increased 16%, and Established Brands rose 2%. The company narrowed its full-year 2024 revenue guidance to $6.375-$6.425 billion and revised Adjusted EBITDA margin to 30.0-31.0%. Nexplanon showed strong performance with 11% growth, positioning it to deliver $1 billion in revenue next year. The Board declared a quarterly dividend of $0.28 per share.
Organon (OGN) ha riportato risultati solidi per il terzo trimestre del 2024, con ricavi di 1.582 miliardi di dollari, in aumento del 4% rispetto al valore riportato e del 5% a valuta costante. L'azienda ha ottenuto un utile netto di 359 milioni di dollari e un utile per azione diluito di $1.38. I ricavi della Salute Femminile sono cresciuti del 5%, i Biosimilari sono aumentati del 16% e i Brand Consolidati sono saliti del 2%. L'azienda ha ristretto le previsioni di fatturato per l'intero anno 2024 a un intervallo di 6.375-6.425 miliardi di dollari e ha rivisto il margine EBITDA aggiustato al 30.0-31.0%. Nexplanon ha mostrato una forte performance con una crescita dell'11%, posizionandosi per generare 1 miliardo di dollari di ricavi l'anno prossimo. Il Consiglio ha dichiarato un dividendo trimestrale di 0.28 dollari per azione.
Organon (OGN) informó resultados sólidos para el tercer trimestre de 2024, con ingresos de 1.582 millones de dólares, un aumento del 4% según lo reportado y del 5% a moneda constante. La compañía logró un ingreso neto de 359 millones de dólares y una ganancia por acción diluida de $1.38. Los ingresos de Salud de la Mujer crecieron un 5%, los Biosimilares aumentaron un 16% y las Marcas Establecidas subieron un 2%. La empresa ajustó su guía de ingresos para todo el año 2024 a un rango de 6.375-6.425 millones de dólares y revisó el margen de EBITDA ajustado al 30.0-31.0%. Nexplanon mostró un sólido desempeño con un crecimiento del 11%, posicionándose para generar 1.000 millones de dólares en ingresos el próximo año. La Junta declaró un dividendo trimestral de 0.28 dólares por acción.
오르가논 (OGN)은 2024년 3분기 실적을 발표하며 15억 8200만 달러의 매출을 기록하였고, 이는 보고 기준으로 4% 증가했으며, 일정 환율 기준으로는 5% 증가했다고 밝혔습니다. 이 회사는 3억 5900만 달러의 순이익과 희석 주당순이익(EPS) 1.38달러를 달성했습니다. 여성 건강 부문 매출은 5% 증가하였고, 바이오시밀러는 16% 증가했으며, 기존 브랜드는 2% 상승했습니다. 올해 2024년 전체 매출 전망을 63억 7500만 달러에서 64억 2500만 달러로 조정하였고, 조정된 EBITDA 마진을 30.0-31.0%로 수정했습니다. 넥스플라논은 11% 성장하며 내년 매출 10억 달러 달성을 위한 좋은 성과를 보였습니다. 이사회는 주당 0.28달러의 분기 배당금을 선언했습니다.
Organon (OGN) a rapporté des résultats solides pour le troisième trimestre 2024, avec des revenus de 1,582 milliard de dollars, en hausse de 4 % par rapport au chiffre reporté et de 5 % à taux de change constant. L’entreprise a enregistré un revenu net de 359 millions de dollars et un bénéfice par action dilué de 1,38 dollar. Les revenus de la Santé des Femmes ont augmenté de 5 %, les biosimilaires de 16 %, et les Marques Établies de 2 %. L’entreprise a ajusté ses prévisions de revenus pour l’année 2024 dans une fourchette de 6,375 à 6,425 milliards de dollars et a révisé la marge EBITDA ajustée à 30,0-31,0 %. Nexplanon a montré de solides performances avec une croissance de 11 %, se positionnant pour générer 1 milliard de dollars de revenus l’année prochaine. Le Conseil a déclaré un dividende trimestriel de 0,28 dollar par action.
Organon (OGN) berichtete über starke Ergebnisse für das 3. Quartal 2024 mit einem Umsatz von 1,582 Milliarden Dollar, was einem Anstieg von 4% laut Bericht und 5% bei konstanten Währungsbedingungen entspricht. Das Unternehmen erzielte einen Nettogewinn von 359 Millionen Dollar und einen verwässerten Gewinn pro Aktie von 1,38 Dollar. Der Umsatz im Bereich Frauengesundheit wuchs um 5%, Biosimilars stiegen um 16% und etablierte Marken legten um 2% zu. Das Unternehmen hat die Umsatzprognose für das gesamte Jahr 2024 auf 6,375–6,425 Milliarden Dollar gesenkt und die bereinigte EBITDA-Marge auf 30,0–31,0% überarbeitet. Nexplanon zeigte eine starke Leistung mit einem Wachstum von 11% und ist gut positioniert, um im nächsten Jahr 1 Milliarde Dollar Umsatz zu erzielen. Der Vorstand erklärte eine vierteljährliche Dividende von 0,28 Dollar pro Aktie.
- Revenue increased 4% to $1.582 billion
- Net income surged to $359 million from $58 million YoY
- Women's Health revenue grew 5%, led by Nexplanon's 11% growth
- Biosimilars revenue increased 16%
- Fertility portfolio grew 14%
- Company raised midpoint of full-year revenue guidance by $50 million
- Gross margin declined to 58.3% from 59.7% YoY
- NuvaRing sales declined 45% due to generic competition
- Ontruzant sales dropped 49%
- Adjusted EBITDA margin decreased to 29.0% from 29.4%
- $51 million expense incurred for IPR&D and milestones
Insights
The Q3 2024 results show encouraging momentum with
The company's profitability metrics reveal mixed signals. While net income surged to
Management's raised revenue guidance midpoint by
The company's strategic positioning is strengthening through portfolio diversification. The successful integration of Emgality and VTAMA adds new growth drivers beyond core products. Nexplanon's dominant performance and the
The Established Brands segment's
-
Third quarter 2024 revenue of
, up$1.58 2 billion4% as-reported and up5% at constant currency -
Third quarter 2024 diluted earnings per share of
and non-GAAP Adjusted diluted earnings per share of$1.38 ; both reported and non-GAAP Adjusted diluted earnings per share include$0.87 of expense, or$51 million per share, for acquired in-process research and development (IPR&D) and milestones$0.16 -
Third quarter 2024 net income of
and Adjusted EBITDA (non-GAAP) of$359 million $459 million -
Guidance range for full year 2024 revenue narrowed to
to$6.37 5 billion , mid-point of the range raised by$6.42 5 billion ; Guidance range for Adjusted EBITDA margin (non-GAAP) revised to$50 million 30.0% to31.0% , inclusive of the of IPR&D expense incurred in the third quarter$51 million
"In 2024 our commercial execution has been very strong. Our largest product, Nexplanon, is well positioned to deliver
Third Quarter 2024 Revenue
in $ millions |
|
Q3 2024 |
|
Q3 2023 |
|
VPY |
|
VPY ex-FX |
||
Women’s Health |
|
$ |
440 |
|
$ |
418 |
|
|
|
|
Biosimilars |
|
|
165 |
|
|
142 |
|
|
|
|
Established Brands |
|
|
951 |
|
|
935 |
|
|
|
|
Other (1) |
|
|
26 |
|
|
24 |
|
|
|
|
Revenues |
|
$ |
1,582 |
|
$ |
1,519 |
|
|
|
|
Totals may not foot due to rounding and percentages are computed using unrounded amounts. |
||||||||||
(1) Other includes manufacturing sales to third parties. |
For the third quarter of 2024, total revenue was
Women's Health revenue increased
Performance in the Women's Health franchise was partially offset by sales of NuvaRing® (etonogestrel / ethinyl estradiol vaginal ring), a vaginal contraceptive product, which declined
Biosimilars revenue grew
Established Brands revenue grew
(1) Emgality is a trademark registered in
Third Quarter 2024 Profitability
in $ millions, except per share amounts |
|
Q3 2024 |
|
Q3 2023 |
|
VPY |
||||
Revenues |
|
$ |
1,582 |
|
|
$ |
1,519 |
|
|
|
Cost of sales |
|
|
659 |
|
|
|
612 |
|
|
|
Gross profit |
|
|
923 |
|
|
|
907 |
|
|
|
Non-GAAP Adjusted gross profit (1) |
|
|
976 |
|
|
|
951 |
|
|
|
Net income |
|
|
359 |
|
|
|
58 |
|
|
|
Non-GAAP Adjusted net income (1) |
|
|
226 |
|
|
|
223 |
|
|
|
Diluted Earnings per Share (EPS) |
|
|
1.38 |
|
|
|
0.23 |
|
|
|
Non-GAAP Adjusted diluted EPS (1) |
|
|
0.87 |
|
|
|
0.87 |
|
|
—% |
Acquired IPR&D and milestones |
|
|
51 |
|
|
|
— |
|
|
NM |
Per share impact to diluted EPS from acquired IPR&D and milestones |
|
|
(0.16 |
) |
|
|
— |
|
|
NM |
|
|
|
|
|
|
|
||||
Adjusted EBITDA (Non-GAAP) (1,2) |
|
|
459 |
|
|
|
447 |
|
|
|
|
|
|
|
|
|
|
||||
|
|
Q3 2024 |
|
Q3 2023 |
|
|
||||
Gross margin |
|
|
58.3 |
% |
|
|
59.7 |
% |
|
|
Non-GAAP Adjusted gross margin (1) |
|
|
61.7 |
% |
|
|
62.6 |
% |
|
|
Adjusted EBITDA margin (Non-GAAP) (1, 2) |
|
|
29.0 |
% |
|
|
29.4 |
% |
|
|
(1) |
|
See Tables 4 and 5 for reconciliations of GAAP to non-GAAP financial measures. |
(2) |
|
Adjusted EBITDA and Adjusted EBITDA margin included |
Gross margin was
Net income for the third quarter of 2024 was
Non-GAAP Adjusted EBITDA margin was
Capital Allocation
Today, Organon’s Board of Directors declared a quarterly dividend of
As of September 30, 2024, cash and cash equivalents were
Full Year Guidance
Organon does not provide GAAP financial measures on a forward-looking basis because the company cannot predict with reasonable certainty and without unreasonable effort, the ultimate outcome of legal proceedings, unusual gains and losses, the occurrence of matters creating GAAP tax impacts, and acquisition-related expenses. These items are uncertain, depend on various factors, and could be material to Organon’s results computed in accordance with GAAP.
Full year 2024 financial guidance is presented below on a non-GAAP basis, except revenue.
|
Previous guidance as of August 6, 2024 |
Current guidance |
||
Revenues |
|
|
||
Adjusted gross margin |
|
~ |
||
SG&A |
|
|
||
R&D |
|
|
||
IPR&D |
|
|
||
Total R&D |
|
|
||
Adjusted EBITDA margin (Non-GAAP) |
|
|
||
Interest |
|
Unchanged |
||
Depreciation |
|
Unchanged |
||
Effective non-GAAP tax rate |
|
Unchanged |
||
Fully diluted weighted average shares outstanding |
~259M |
Unchanged |
*Updated R&D expense guidance includes
Webcast Information
Organon will host a conference call at 8:30 a.m. Eastern Time today to discuss its third quarter 2024 financial results. To listen to the event and view the presentation slides via webcast, join from the Organon Investor Relations website at https://www.organon.com/investor-relations/events-and-presentations/. A replay of the webcast will be available approximately two hours after the conclusion of the live event on the company’s website. Institutional investors and analysts interested in participating in the call must register in advance by clicking on this link: https://registrations.events/direct/Q4I58511172
Following registration, participants will receive a confirmation email containing details on how to join the conference call, including dial-in information and a unique passcode and registrant ID. Pre-registration will allow participants to bypass an operator and be placed directly into the call.
About Organon
Organon is an independent global healthcare company with a mission to help improve the health of women throughout their lives. Organon’s diverse portfolio offers more than 60 medicines and products in women’s health, biosimilars, and a large franchise of established medicines across a range of therapeutic areas. In addition to Organon’s current products, the company invests in innovative solutions and research to drive future growth opportunities in women’s health and biosimilars. In addition, Organon is pursuing opportunities to collaborate with biopharmaceutical partners and innovators looking to commercialize their products by leveraging its scale and agile presence in fast growing international markets.
Organon has geographic scope with significant reach, world-class commercial capabilities, and approximately 10,000 employees with headquarters located in
For more information, visit http://www.organon.com and connect with us on LinkedIn, Instagram, X (formerly known as Twitter) and Facebook.
Cautionary Note Regarding Non-GAAP Financial Measures
This press release contains “non-GAAP financial measures,” which are financial measures that either exclude or include amounts that are correspondingly not excluded or included in the most directly comparable measures calculated and presented in accordance with
In addition, the company’s full-year 2024 guidance measures (other than revenue) are provided on a non-GAAP basis because the company is unable to reasonably predict certain items contained in the GAAP measures. Such items include, but are not limited to, acquisition related expenses, restructuring and related expenses, stock-based compensation, the ultimate outcome of legal proceedings, unusual gains and losses, the occurrence of matters creating GAAP tax impacts and other items not reflective of the company's ongoing operations.
The company’s management uses the non-GAAP financial measures described above to evaluate the company’s performance and to guide operational and financial decision making. Further, the company’s management believes that these non-GAAP financial measures, which exclude certain items, help to enhance its ability to meaningfully communicate its underlying business performance, financial condition and results of operations.
Cautionary Note Regarding Forward-Looking Statements
Except for historical information, this press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the
Risks and uncertainties include, but are not limited to, pricing pressures globally, including rules and practices of managed care groups, judicial decisions and governmental laws and regulations related to Medicare, Medicaid and health care reform, pharmaceutical reimbursement and pricing in general; an inability to fully execute on our product development and commercialization plans in
The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the company’s filings with the Securities and Exchange Commission ("SEC"), including the company’s most recent Annual Report on Form 10-K and subsequent SEC filings, available at the SEC’s Internet site (www.sec.gov).
TABLE 1 | ||||||||||||||
Organon & Co. Condensed Consolidated Statement of Income (Unaudited, $ in millions except shares in thousands and per share amounts) |
||||||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
2024 |
|
|
|
2023 |
|
Revenues |
$ |
1,582 |
|
|
$ |
1,519 |
|
$ |
4,811 |
|
|
$ |
4,665 |
|
Cost of sales |
|
659 |
|
|
|
612 |
|
|
1,992 |
|
|
|
1,832 |
|
Gross Profit |
|
923 |
|
|
|
907 |
|
|
2,819 |
|
|
|
2,833 |
|
|
|
|
|
|
|
|
|
|||||||
Selling, general and administrative |
|
422 |
|
|
|
538 |
|
|
1,290 |
|
|
|
1,424 |
|
Research and development |
|
111 |
|
|
|
137 |
|
|
339 |
|
|
|
394 |
|
Acquired in-process research and development and milestones |
|
51 |
|
|
|
— |
|
|
81 |
|
|
|
8 |
|
Restructuring costs |
|
— |
|
|
|
— |
|
|
23 |
|
|
|
4 |
|
Interest expense |
|
126 |
|
|
|
134 |
|
|
388 |
|
|
|
398 |
|
Exchange losses |
|
6 |
|
|
|
14 |
|
|
11 |
|
|
|
25 |
|
Other expense, net |
|
— |
|
|
|
4 |
|
|
9 |
|
|
|
11 |
|
Income before income taxes |
|
207 |
|
|
|
80 |
|
|
678 |
|
|
|
569 |
|
Tax (benefit) expense |
|
(152 |
) |
|
|
22 |
|
|
(77 |
) |
|
|
92 |
|
Net income |
$ |
359 |
|
|
$ |
58 |
|
$ |
755 |
|
|
$ |
477 |
|
|
|
|
|
|
|
|
|
|||||||
Earnings per share: |
|
|
|
|
|
|
|
|||||||
Basic |
$ |
1.39 |
|
|
$ |
0.23 |
|
$ |
2.94 |
|
|
$ |
1.87 |
|
Diluted |
$ |
1.38 |
|
|
$ |
0.23 |
|
$ |
2.92 |
|
|
$ |
1.86 |
|
|
|
|
|
|
|
|
|
|||||||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|||||||
Basic |
|
257,498 |
|
|
|
255,588 |
|
|
256,830 |
|
|
|
255,112 |
|
Diluted |
|
259,757 |
|
|
|
256,349 |
|
|
258,908 |
|
|
|
256,162 |
TABLE 2 | ||||||||||||||||||||||||||||||||||||||
Organon & Co. Sales by top products (Unaudited, $ in millions) |
||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
||||||||||||||||||||||||||||||||||
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||||||||||||||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||||||||||||||||||||||||
|
|
|
|
Int’l |
|
Total |
|
|
|
Int’l |
|
Total |
|
|
|
Int’l |
|
Total |
|
|
|
Int’l |
|
Total |
||||||||||||||
Women’s Health |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Nexplanon/Implanon NXT |
$ |
172 |
|
$ |
70 |
|
$ |
243 |
|
$ |
146 |
|
$ |
74 |
|
$ |
220 |
|
$ |
497 |
|
|
$ |
207 |
|
$ |
704 |
|
$ |
418 |
|
|
$ |
181 |
|
$ |
599 |
|
Follistim AQ |
|
26 |
|
|
37 |
|
|
63 |
|
|
22 |
|
|
32 |
|
|
54 |
|
|
59 |
|
|
|
113 |
|
|
171 |
|
|
74 |
|
|
|
105 |
|
|
179 |
|
NuvaRing (1) |
|
7 |
|
|
17 |
|
|
23 |
|
|
23 |
|
|
20 |
|
|
43 |
|
|
33 |
|
|
|
57 |
|
|
90 |
|
|
70 |
|
|
|
67 |
|
|
137 |
|
Ganirelix Acetate Injection |
|
5 |
|
|
20 |
|
|
26 |
|
|
4 |
|
|
21 |
|
|
25 |
|
|
16 |
|
|
|
65 |
|
|
82 |
|
|
15 |
|
|
|
74 |
|
|
88 |
|
Marvelon/Mercilon |
|
— |
|
|
29 |
|
|
29 |
|
|
— |
|
|
30 |
|
|
30 |
|
|
— |
|
|
|
103 |
|
|
103 |
|
|
— |
|
|
|
97 |
|
|
97 |
|
Jada |
|
15 |
|
|
— |
|
|
16 |
|
|
12 |
|
|
— |
|
|
13 |
|
|
42 |
|
|
|
1 |
|
|
43 |
|
|
30 |
|
|
|
— |
|
|
31 |
|
Other Women’s Health (1) (2) |
|
14 |
|
|
28 |
|
|
40 |
|
|
11 |
|
|
22 |
|
|
33 |
|
|
41 |
|
|
|
78 |
|
|
119 |
|
|
32 |
|
|
|
74 |
|
|
106 |
|
Biosimilars |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Renflexis |
|
56 |
|
|
16 |
|
|
72 |
|
|
57 |
|
|
12 |
|
|
69 |
|
|
167 |
|
|
|
43 |
|
|
210 |
|
|
172 |
|
|
|
29 |
|
|
201 |
|
Ontruzant |
|
5 |
|
|
15 |
|
|
20 |
|
|
11 |
|
|
28 |
|
|
40 |
|
|
23 |
|
|
|
84 |
|
|
107 |
|
|
36 |
|
|
|
57 |
|
|
93 |
|
Brenzys |
|
— |
|
|
27 |
|
|
27 |
|
|
— |
|
|
13 |
|
|
13 |
|
|
— |
|
|
|
63 |
|
|
63 |
|
|
— |
|
|
|
45 |
|
|
45 |
|
Aybintio |
|
— |
|
|
7 |
|
|
7 |
|
|
— |
|
|
12 |
|
|
12 |
|
|
— |
|
|
|
22 |
|
|
22 |
|
|
— |
|
|
|
34 |
|
|
34 |
|
Hadlima |
|
29 |
|
|
11 |
|
|
40 |
|
|
2 |
|
|
6 |
|
|
8 |
|
|
71 |
|
|
|
27 |
|
|
98 |
|
|
2 |
|
|
|
18 |
|
|
20 |
|
Established Brands |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Cardiovascular |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Zetia (1) |
|
2 |
|
|
80 |
|
|
81 |
|
|
2 |
|
|
68 |
|
|
69 |
|
|
5 |
|
|
|
235 |
|
|
240 |
|
|
5 |
|
|
|
248 |
|
|
253 |
|
Vytorin |
|
1 |
|
|
25 |
|
|
26 |
|
|
2 |
|
|
31 |
|
|
33 |
|
|
4 |
|
|
|
78 |
|
|
82 |
|
|
5 |
|
|
|
95 |
|
|
100 |
|
Atozet |
|
— |
|
|
125 |
|
|
125 |
|
|
— |
|
|
126 |
|
|
126 |
|
|
— |
|
|
|
396 |
|
|
396 |
|
|
— |
|
|
|
397 |
|
|
397 |
|
Rosuzet |
|
— |
|
|
11 |
|
|
11 |
|
|
— |
|
|
17 |
|
|
17 |
|
|
— |
|
|
|
36 |
|
|
36 |
|
|
— |
|
|
|
52 |
|
|
52 |
|
Cozaar/Hyzaar |
|
2 |
|
|
57 |
|
|
59 |
|
|
3 |
|
|
65 |
|
|
68 |
|
|
7 |
|
|
|
179 |
|
|
186 |
|
|
8 |
|
|
|
217 |
|
|
225 |
|
Other Cardiovascular (1) (2) |
|
— |
|
|
27 |
|
|
29 |
|
|
1 |
|
|
39 |
|
|
41 |
|
|
2 |
|
|
|
97 |
|
|
99 |
|
|
2 |
|
|
|
110 |
|
|
112 |
|
Respiratory |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Singulair |
|
2 |
|
|
83 |
|
|
85 |
|
|
3 |
|
|
88 |
|
|
91 |
|
|
7 |
|
|
|
268 |
|
|
275 |
|
|
8 |
|
|
|
282 |
|
|
290 |
|
Nasonex (1) |
|
— |
|
|
63 |
|
|
63 |
|
|
— |
|
|
60 |
|
|
60 |
|
|
— |
|
|
|
200 |
|
|
200 |
|
|
— |
|
|
|
197 |
|
|
197 |
|
Dulera |
|
38 |
|
|
10 |
|
|
48 |
|
|
40 |
|
|
9 |
|
|
49 |
|
|
120 |
|
|
|
31 |
|
|
151 |
|
|
116 |
|
|
|
28 |
|
|
144 |
|
Clarinex |
|
1 |
|
|
26 |
|
|
27 |
|
|
2 |
|
|
26 |
|
|
28 |
|
|
2 |
|
|
|
97 |
|
|
100 |
|
|
4 |
|
|
|
103 |
|
|
107 |
|
Other Respiratory (1) (2) |
|
11 |
|
|
3 |
|
|
14 |
|
|
17 |
|
|
3 |
|
|
20 |
|
|
26 |
|
|
|
10 |
|
|
35 |
|
|
42 |
|
|
|
10 |
|
|
52 |
|
Non-Opioid Pain, Bone and Dermatology |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Arcoxia |
|
— |
|
|
69 |
|
|
69 |
|
|
— |
|
|
64 |
|
|
64 |
|
|
— |
|
|
|
211 |
|
|
211 |
|
|
— |
|
|
|
207 |
|
|
207 |
|
Fosamax |
|
1 |
|
|
37 |
|
|
38 |
|
|
1 |
|
|
40 |
|
|
41 |
|
|
3 |
|
|
|
109 |
|
|
112 |
|
|
2 |
|
|
|
121 |
|
|
123 |
|
Diprospan |
|
— |
|
|
37 |
|
|
37 |
|
|
— |
|
|
31 |
|
|
31 |
|
|
— |
|
|
|
102 |
|
|
102 |
|
|
— |
|
|
|
58 |
|
|
58 |
|
Other Non-Opioid Pain, Bone and Dermatology (2) |
|
5 |
|
|
69 |
|
|
74 |
|
|
4 |
|
|
70 |
|
|
74 |
|
|
15 |
|
|
|
212 |
|
|
227 |
|
|
11 |
|
|
|
196 |
|
|
207 |
|
Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Emgality/Rayvow |
|
— |
|
|
29 |
|
|
29 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
69 |
|
|
69 |
|
|
— |
|
|
|
— |
|
|
— |
|
Proscar |
|
— |
|
|
23 |
|
|
23 |
|
|
— |
|
|
25 |
|
|
25 |
|
|
1 |
|
|
|
72 |
|
|
73 |
|
|
1 |
|
|
|
76 |
|
|
77 |
|
Propecia |
|
2 |
|
|
27 |
|
|
28 |
|
|
2 |
|
|
21 |
|
|
22 |
|
|
5 |
|
|
|
74 |
|
|
79 |
|
|
5 |
|
|
|
86 |
|
|
92 |
|
Other (2) |
|
3 |
|
|
80 |
|
|
84 |
|
|
5 |
|
|
72 |
|
|
76 |
|
|
12 |
|
|
|
229 |
|
|
241 |
|
|
10 |
|
|
|
231 |
|
|
240 |
|
Other (3) |
|
1 |
|
|
26 |
|
|
26 |
|
|
— |
|
|
24 |
|
|
24 |
|
|
(2 |
) |
|
|
87 |
|
|
85 |
|
|
(1 |
) |
|
|
103 |
|
|
102 |
|
Revenues |
$ |
398 |
|
$ |
1,184 |
|
$ |
1,582 |
|
$ |
370 |
|
$ |
1,149 |
|
$ |
1,519 |
|
$ |
1,156 |
|
|
$ |
3,655 |
|
$ |
4,811 |
|
$ |
1,067 |
|
|
$ |
3,598 |
|
$ |
4,665 |
Totals may not foot due to rounding. Trademarks appearing above in italics are trademarks of, or are used under license by, the Organon group of companies. |
||
(1) Sales of the authorized generic versions of NuvaRing, Zetia and Nasonex were previously included in other and have been reclassified to their respective brand name product. | ||
(2) Includes sales of products not listed separately. |
||
(3) Includes manufacturing sales to third parties. |
TABLE 3 |
||||||||||||
Organon & Co. Sales by geographic area (Unaudited, $ in millions) |
||||||||||||
|
|
|
|
|
||||||||
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
|
$ |
436 |
|
$ |
392 |
|
$ |
1,343 |
|
$ |
1,259 |
|
|
|
398 |
|
|
370 |
|
|
1,156 |
|
|
1,067 |
|
|
|
260 |
|
|
284 |
|
|
806 |
|
|
869 |
|
|
|
212 |
|
|
202 |
|
|
634 |
|
|
661 |
|
|
|
243 |
|
|
239 |
|
|
768 |
|
|
687 |
|
Other (1) |
|
33 |
|
|
32 |
|
|
104 |
|
|
122 |
|
Revenues |
$ |
1,582 |
|
$ |
1,519 |
|
$ |
4,811 |
|
$ |
4,665 |
|
(1) Primarily reflects manufacturing sales to third parties. |
TABLE 4 | ||||||||||||||||
Organon & Co. |
||||||||||||||||
Reconciliation of GAAP Reported to Non-GAAP Adjusted Metrics |
||||||||||||||||
(Unaudited, $ in millions) |
||||||||||||||||
|
||||||||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
GAAP Gross Profit |
$ |
923 |
|
|
$ |
907 |
|
|
$ |
2,819 |
|
|
$ |
2,833 |
|
|
Adjusted for: |
|
|
|
|
|
|
|
|||||||||
Spin-related costs (1) |
|
— |
|
|
|
10 |
|
|
|
6 |
|
|
|
30 |
|
|
Manufacturing network costs (2) |
|
14 |
|
|
|
— |
|
|
|
39 |
|
|
|
— |
|
|
Stock-based compensation |
|
4 |
|
|
|
5 |
|
|
|
13 |
|
|
|
13 |
|
|
Amortization |
|
35 |
|
|
|
29 |
|
|
|
102 |
|
|
|
88 |
|
|
Other |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
Adjusted Non-GAAP Gross Profit |
$ |
976 |
|
|
$ |
951 |
|
|
$ |
2,979 |
|
|
$ |
2,966 |
|
|
|
|
|
|
|
|
|
|
|||||||||
(1) Spin-related costs include costs from the separation of Merck & Co., Inc.,
(2) Manufacturing network related costs include costs from exiting manufacturing and supply agreements with Merck & Co., Inc., |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
GAAP Gross Margin |
|
58.3 |
% |
|
|
59.7 |
% |
|
|
58.6 |
% |
|
|
60.7 |
% |
|
Total impact of Non-GAAP adjustments |
|
3.4 |
% |
|
|
2.9 |
% |
|
|
3.3 |
% |
|
|
2.9 |
% |
|
Adjusted Non-GAAP Gross Margin |
|
61.7 |
% |
|
|
62.6 |
% |
|
|
61.9 |
% |
|
|
63.6 |
% |
|
|
|
|
|
|
|
|
|
|||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
GAAP Selling, general and administrative expenses |
$ |
422 |
|
|
$ |
538 |
|
|
$ |
1,290 |
|
|
$ |
1,424 |
|
|
Adjusted for: |
|
|
|
|
|
|
|
|||||||||
Spin-related costs (1) |
|
(10 |
) |
|
|
(41 |
) |
|
|
(79 |
) |
|
|
(131 |
) |
|
Stock-based compensation |
|
(17 |
) |
|
|
(18 |
) |
|
|
(53 |
) |
|
|
(50 |
) |
|
Other |
|
(4 |
) |
|
|
(87 |
) |
|
|
(4 |
) |
|
|
(88 |
) |
|
Adjusted Non-GAAP Selling, general and administrative expenses |
$ |
391 |
|
|
$ |
392 |
|
|
$ |
1,154 |
|
|
$ |
1,155 |
|
|
|
|
|
|
|
|
|
|
|||||||||
(1) Spin-related costs include costs from the separation of Merck & Co., Inc., |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
GAAP Research and development expenses |
$ |
111 |
|
|
$ |
137 |
|
|
$ |
339 |
|
|
$ |
394 |
|
|
Adjusted for: |
|
|
|
|
|
|
|
|||||||||
Spin-related costs (1) |
|
(2 |
) |
|
|
(4 |
) |
|
|
(5 |
) |
|
|
(10 |
) |
|
Stock-based compensation |
|
(4 |
) |
|
|
(4 |
) |
|
|
(13 |
) |
|
|
(11 |
) |
|
Adjusted Non-GAAP Research and development expenses |
$ |
105 |
|
|
$ |
129 |
|
|
$ |
321 |
|
|
$ |
373 |
|
|
|
|
|
|
|
|
|
|
|||||||||
(1) Spin-related costs include costs from the separation of Merck & Co., Inc., |
|
||||||||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
GAAP Reported Net Income |
$ |
359 |
|
|
$ |
58 |
|
|
$ |
755 |
|
|
$ |
477 |
|
|
Adjusted for: |
|
|
|
|
|
|
|
|||||||||
Cost of sales adjustments |
|
53 |
|
|
|
44 |
|
|
|
160 |
|
|
|
133 |
|
|
Selling, general and administrative adjustments |
|
31 |
|
|
|
146 |
|
|
|
136 |
|
|
|
269 |
|
|
Research and development adjustments |
|
6 |
|
|
|
8 |
|
|
|
18 |
|
|
|
21 |
|
|
Restructuring |
|
— |
|
|
|
— |
|
|
|
23 |
|
|
|
4 |
|
|
Other expense, net |
|
4 |
|
|
|
3 |
|
|
|
14 |
|
|
|
13 |
|
|
Tax impact on adjustments above(1) |
|
(227 |
) |
|
|
(36 |
) |
|
|
(276 |
) |
|
|
(82 |
) |
|
Non-GAAP Adjusted Net Income |
$ |
226 |
|
|
$ |
223 |
|
|
$ |
830 |
|
|
$ |
835 |
|
|
|
|
|
|
|
|
|
|
|||||||||
(1) For the three months ended September 30, 2024 and 2023, the GAAP income tax rates were (73.7)% and |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
GAAP Diluted Earnings per Share |
$ |
1.38 |
|
|
$ |
0.23 |
|
|
$ |
2.92 |
|
|
$ |
1.86 |
|
|
Total impact of Non-GAAP adjustments |
$ |
(0.51 |
) |
|
$ |
0.64 |
|
|
$ |
0.29 |
|
|
$ |
1.40 |
|
|
Non-GAAP Diluted Earnings per Share |
$ |
0.87 |
|
|
$ |
0.87 |
|
|
$ |
3.21 |
|
|
$ |
3.26 |
|
TABLE 5 |
||||||||||||||||
Organon & Co. Reconciliation of GAAP Net Income to Non-GAAP Adjusted EBITDA (Unaudited, $ in millions) |
||||||||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
Net income |
$ |
359 |
|
|
$ |
58 |
|
|
$ |
755 |
|
|
$ |
477 |
|
|
Depreciation (1) |
|
32 |
|
|
|
32 |
|
|
|
93 |
|
|
|
88 |
|
|
Amortization |
|
35 |
|
|
|
29 |
|
|
|
102 |
|
|
|
88 |
|
|
Interest expense |
|
126 |
|
|
|
134 |
|
|
|
388 |
|
|
|
398 |
|
|
Tax (benefit) expense |
|
(152 |
) |
|
|
22 |
|
|
|
(77 |
) |
|
|
92 |
|
|
EBITDA |
$ |
400 |
|
|
$ |
275 |
|
|
$ |
1,261 |
|
|
$ |
1,143 |
|
|
Restructuring costs |
|
— |
|
|
|
— |
|
|
|
23 |
|
|
|
4 |
|
|
Spin-related costs (2) |
|
16 |
|
|
|
58 |
|
|
|
104 |
|
|
|
184 |
|
|
Manufacturing network related (3) |
|
14 |
|
|
|
— |
|
|
|
39 |
|
|
|
— |
|
|
Other costs (4) |
|
4 |
|
|
|
87 |
|
|
|
4 |
|
|
|
90 |
|
|
Stock-based compensation |
|
25 |
|
|
|
27 |
|
|
|
79 |
|
|
|
74 |
|
|
Adjusted EBITDA (Non-GAAP) |
$ |
459 |
|
|
$ |
447 |
|
|
$ |
1,510 |
|
|
$ |
1,495 |
|
|
Adjusted EBITDA margin (Non-GAAP) |
|
29.0 |
% |
|
|
29.4 |
% |
|
|
31.4 |
% |
|
|
32.0 |
% |
|
|
|
|
|
|
|
|
|
|||||||||
(1) Excludes accelerated depreciation included in one-time costs. |
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(2) Spin-related costs reflect certain costs incurred in connection with activities taken to separate Organon from Merck & Co., Inc., |
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(3) Manufacturing network related costs, including exiting of temporary manufacturing and supply agreements with Merck & Co., Inc., |
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(4) Other costs for the three and nine months ended September 30, 2024 and 2023, respectively, include |
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As the costs described in (1) through (4) above are directly related to the separation of Organon and therefore arise from a one-time event outside of the ordinary course of the company’s operations, the adjustment of these items provides meaningful, supplemental, information that the company believes will enhance an investor's understanding of the company's ongoing operating performance. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241031897698/en/
Media Contacts:
Karissa Peer
(614) 314-8094
Kate Vossen
(732) 675-8448
Investor Contacts:
Jennifer Halchak
(201) 275-2711
Renee McKnight
(551) 204-6129
Source: Organon & Co.
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