Organon to Report Third Quarter 2024 Results and Host Conference Call on October 31, 2024

Rhea-AI Summary

Organon (NYSE: OGN), a global healthcare company focusing on women's health, will release its third quarter 2024 financial results on October 31, 2024, before a webcast and conference call at 8:30 a.m. EDT. The company anticipates recording $51 million in milestone expenses for Q3 2024, impacting both GAAP and non-GAAP earnings per share by approximately $0.16. Of this, $50 million relates to a denosumab biosimilar candidate progressing under an agreement with Shanghai Henlius Biotech, Inc.

Organon notes that IPR&D and milestones are not included in their financial guidance due to uncertainty in timing. The Q3 2024 results are preliminary and subject to finalization. Interested parties can access the live call via webcast on Organon's website, with a replay available approximately two hours after the event.

Positive

• Progress in denosumab biosimilar candidate development
• Transparency in providing preliminary financial estimates

Negative

• $51 million milestone expense impacting Q3 2024 earnings
• Approximately $0.16 negative impact on both GAAP and non-GAAP EPS

Insights

Financial Analyst

The announcement of $51 million in milestone expenses for Q3 2024 is significant, impacting Organon's earnings per share by approximately $0.16. This unexpected expense, primarily related to a denosumab biosimilar candidate, wasn't included in the company's August 2024 guidance. It's important to note that $50 million of this expense is tied to a single project with Shanghai Henlius Biotech, Inc., indicating substantial progress in their biosimilar development.

While milestone expenses can signify positive advancements in drug development, they also represent short-term financial pressures. Investors should consider both the immediate EPS impact and the long-term potential of Organon's pipeline, particularly in the competitive biosimilars market. The company's decision to exclude IPR&D and milestone expenses from guidance due to uncertainty adds an element of unpredictability to financial forecasts, which may concern risk-averse investors.

Overall, this news suggests active pipeline development but also highlights the financial volatility inherent in pharmaceutical R&D. Investors should closely monitor the Q3 earnings call for more context on these expenses and their strategic implications.

Company estimates $51 million of milestone expense in the third quarter

JERSEY CITY, N.J.--(BUSINESS WIRE)-- Organon (NYSE: OGN), a global healthcare company with a focus on women’s health, will release its third quarter 2024 financial results on October 31, 2024, prior to the company’s webcast and conference call scheduled for 8:30 a.m. EDT.

IPR&D and Milestones

Organon currently expects that it will record $51 million of milestone expense in the third quarter of 2024, representing an impact of approximately $0.16 to both GAAP and non-GAAP earnings per share. Of the anticipated milestone expense in the quarter, $50 million relates to a denosumab biosimilar candidate which is progressing under the company’s license agreement with Shanghai Henlius Biotech, Inc.

As previously disclosed, Organon does not forecast IPR&D (in process research and development) or milestones due to the level of uncertainty and ability to forecast the timing of such achievements. As such, these milestones, as well as any future IPR&D and milestones are not contemplated in the company’s financial guidance provided on August 6, 2024. Organon’s third quarter 2024 results have not been finalized and are subject to the company’s quarterly financial statement closing procedures. There can be no assurance that actual results will not differ from the preliminary estimates described herein.

Accessing Third Quarter 2024 Financial Results Webcast

Interested parties may access the live call via webcast on the Organon 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 Jersey City, New Jersey.

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 Forward-Looking Statements

The information above reflects management’s current intentions and expectations for the future with respect to Organon’s anticipated charges for milestone payments and the related impact to Organon’s GAAP and non-GAAP earnings per share, which constitute “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements are subject to a number of risks, assumptions, uncertainties and other factors, such as the completion of Organon’s quarter-end closing process, including review by management and the audit committee of the Organon’s board of directors, which could result in material changes to the preliminary estimates described herein. Organon undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Factors that could cause results to differ materially from those described in the forward-looking statements can be found in Organon’s filings with the Securities and Exchange Commission ("SEC"), including Organon’s most recent Annual Report on Form 10-K and subsequent SEC filings, available at the SEC’s Internet site (www.sec.gov).

View source version on businesswire.com: https://www.businesswire.com/news/home/20241009583391/en/

Organon Media Contacts:

Karissa Peer

(614) 314-8094



Kate Vossen

(732) 675-8448



Organon Investor Contacts:

Jennifer Halchak

(201) 275-2711



Renee McKnight

(551) 204-6129

Source: Organon & Co.

FAQ

When will Organon (OGN) report its Q3 2024 financial results?

Organon (OGN) will release its third quarter 2024 financial results on October 31, 2024, prior to the company's webcast and conference call scheduled for 8:30 a.m. EDT.

What milestone expense does Organon (OGN) expect for Q3 2024?

Organon (OGN) expects to record $51 million of milestone expense in the third quarter of 2024, with $50 million related to a denosumab biosimilar candidate.

How will the Q3 2024 milestone expense impact Organon's (OGN) earnings per share?

The $51 million milestone expense is expected to impact both GAAP and non-GAAP earnings per share by approximately $0.16 for Organon (OGN) in Q3 2024.

Are IPR&D and milestones included in Organon's (OGN) financial guidance?

No, Organon (OGN) does not include IPR&D and milestones in its financial guidance due to the uncertainty and difficulty in forecasting the timing of such achievements.