PART I - FINANCIAL INFORMATION Presents Organon & Co.'s unaudited financial statements, management's discussion, market risk, and internal controls [Item 1. Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) Presents Organon & Co.'s unaudited condensed consolidated financial statements, including income, balance sheets, equity, cash flows, and detailed notes [Condensed Consolidated Statements of Income](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Presents unaudited condensed consolidated statements of income, detailing revenues, expenses, and net income for specified periods Condensed Consolidated Statements of Income (Unaudited, $ in millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenues | $1,594 | $1,607 | $3,107 | $3,229 | | Cost of sales | 720 | 668 | 1,392 | 1,333 | | Gross profit | 874 | 939 | 1,715 | 1,896 | | Selling, general and administrative | 453 | 437 | 873 | 868 | | Research and development | 95 | 116 | 191 | 228 | | Income before income taxes | 229 | 235 | 330 | 471 | | Income tax expense | 84 | 40 | 98 | 75 | | Net income | $145 | $195 | $232 | $396 | | Basic EPS | $0.56 | $0.76 | $0.90 | $1.54 | | Diluted EPS | $0.56 | $0.75 | $0.89 | $1.53 | [Condensed Consolidated Statements of Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Details unaudited condensed consolidated statements of comprehensive income, including net income and other comprehensive adjustments Condensed Consolidated Statements of Comprehensive Income (Unaudited, $ in millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $145 | $195 | $232 | $396 | | Cumulative translation adjustment | 45 | (35) | 77 | (72) | | Comprehensive income | $190 | $160 | $309 | $325 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Outlines unaudited condensed consolidated balance sheets, detailing assets, liabilities, and stockholders' equity at specific dates Condensed Consolidated Balance Sheets (Unaudited, $ in millions) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :-------------- | :---------------- | | Cash and cash equivalents | $599 | $675 | | Accounts receivable (net) | 1,484 | 1,358 | | Inventories | 1,454 | 1,321 | | Total Current Assets | 4,618 | 4,348 | | Property, plant and equipment, net | 1,266 | 1,168 | | Goodwill | 4,680 | 4,680 | | Intangibles, net | 1,362 | 1,414 | | Total Assets | $13,500 | $13,101 | | Current portion of long-term debt and short-term borrowings | $115 | $20 | | Trade accounts payable | 1,067 | 1,153 | | Total Current Liabilities | 2,796 | 2,718 | | Long-term debt | 8,781 | 8,860 | | Total Liabilities | 12,767 | 12,629 | | Total Stockholders' Equity | 733 | 472 | | Total Liabilities and Stockholders' Equity | $13,500 | $13,101 | [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Presents the unaudited condensed consolidated statements of stockholders' equity, showing changes in equity components over time Condensed Consolidated Statements of Stockholders' Equity (Unaudited, $ in millions) | Metric | Balance at January 1, 2025 | Net Income (YTD) | Other Comprehensive Income (YTD) | Cash Dividends Declared (YTD) | Stock-based Compensation Plans and Other (YTD) | Balance at June 30, 2025 | | :-------------------------------- | :------------------------- | :--------------- | :------------------------------- | :---------------------------- | :--------------------------------------------- | :----------------------- | | Common Stock (Par Value) | $3 | — | — | — | — | $3 | | Additional Paid-In Capital | $108 | — | — | — | $31 | $139 | | Retained Earnings | $1,010 | $232 | — | $(79) | — | $1,163 | | Accumulated Other Comprehensive (Loss) Income | $(649) | — | $77 | — | — | $(572) | | Total Stockholders' Equity | $472 | $232 | $77 | $(79) | $31 | $733 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Outlines unaudited condensed consolidated statements of cash flows, categorizing cash movements from operating, investing, and financing Condensed Consolidated Statements of Cash Flows (Unaudited, $ in millions) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net Cash Flows Provided by Operating Activities | $295 | $408 | | Net Cash Flows Used in Investing Activities | $(210) | $(142) | | Net Cash Flows Used in Financing Activities | $(298) | $(208) | | Effect of Exchange Rate Changes on Cash and Cash Equivalents | 137 | (47) | | Net (Decrease) Increase in Cash and Cash Equivalents | $(76) | $11 | | Cash and Cash Equivalents, Beginning of Period | 675 | 693 | | Cash and Cash Equivalents, End of Period | $599 | $704 | [Notes to Condensed Consolidated Financial Statements (unaudited)](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) Provides detailed notes to unaudited consolidated financial statements, explaining accounting policies and significant financial events [1. Background and Nature of Operations](index=8&type=section&id=1.%20Background%20and%20Nature%20of%20Operations) Organon & Co. is a global healthcare company focused on women's health, offering over 70 medicines and products across women's health and general medicines portfolios, with six manufacturing facilities worldwide - Primary focus: **Improving the health of women throughout their lives**[24](index=24&type=chunk) - Portfolio: **Over 70 medicines and products in women's health and general medicines**[24](index=24&type=chunk) - Key Women's Health brands include **Nexplanon® (contraception)**, **Follistim AQ® (fertility)**, and the **Jada® System (postpartum bleeding)**[27](index=27&type=chunk) - General Medicines portfolio includes leading brands in cardiovascular, respiratory, dermatology, non-opioid pain management, and biosimilars of immunology and oncology treatments[27](index=27&type=chunk) [2. Basis of Presentation](index=8&type=section&id=2.%20Basis%20of%20Presentation) The unaudited financial statements adhere to U.S. GAAP and Form 10-Q, with results not necessarily indicative of the full year. The company operates as one segment with U.S. and International reporting units, and is evaluating new FASB ASUs for disclosures - Financial statements prepared in accordance with **U.S. GAAP and Form 10-Q**[25](index=25&type=chunk) - Operates as **one operating segment** with two reporting units: **U.S. and International**[28](index=28&type=chunk) - Evaluating ASU 2024-03 (Expense Disaggregation Disclosures) and ASU 2023-09 (Improvements to Income Tax Disclosures), effective for fiscal years beginning after December 15, 2026, and January 1, 2025, respectively, with no impact on financial condition or results of operations[29](index=29&type=chunk)[30](index=30&type=chunk) [3. Acquisitions and Licensing Arrangements](index=9&type=section&id=3.%20Acquisitions%20and%20Licensing%20Arrangements) Organon completed several acquisitions and licensing arrangements, including Tofidence (Biogen) and Dermavant (Vtama), expanding its biosimilar and dermatology portfolios. The company also exited an agreement with Centergene and made milestone payments for other products - Acquired U.S. regulatory and commercial rights for **Tofidence® (tocilizumab-bavi)** from Biogen in March 2025 for an upfront payment of **$51 million**[31](index=31&type=chunk) - Acquired Dermavant Sciences Ltd. in October 2024 for an upfront payment of **$175 million** and a **$75 million** milestone payment (paid Q1 2025) for **Vtama® (tapinarof) cream**'s atopic dermatitis indication approval, with potential for up to **$950 million** in commercial milestones[32](index=32&type=chunk)[33](index=33&type=chunk) - Exited agreement with Suzhou Centergene Pharmaceuticals due to changes in China's fertility landscape, recognizing **$6 million** in acquired in-process research and development and milestones for the six months ended June 30, 2025[38](index=38&type=chunk) - Acquired the Oss Biotech manufacturing facility in the Netherlands from Merck in July 2025 for an aggregate consideration of **$25 million**[40](index=40&type=chunk) [4. Earnings per Share ("EPS")](index=11&type=section&id=4.%20Earnings%20per%20Share%20(%22EPS%22)) Basic and diluted EPS decreased for both the three and six months ended June 30, 2025, compared to the prior year, reflecting lower net income Earnings per Share (EPS) and Weighted Average Shares Outstanding | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Basic EPS | $0.56 | $0.76 | $0.90 | $1.54 | | Diluted EPS | $0.56 | $0.75 | $0.89 | $1.53 | | Basic weighted average shares outstanding (thousands) | 259,939 | 257,288 | 258,906 | 256,492 | | Diluted weighted average common shares outstanding (thousands) | 260,156 | 258,598 | 260,584 | 258,480 | [5. Product and Geographic Information](index=12&type=section&id=5.%20Product%20and%20Geographic%20Information) Total revenues slightly decreased for the three months and more significantly for the six months ended June 30, 2025, primarily due to declines in Europe & Canada and Asia Pacific & Japan, despite growth in the U.S. and Latin America, Middle East, Russia, and Africa Total Revenues by Period ($ in millions) | Period | 2025 | 2024 | % Change | | :----- | :--- | :--- | :------- | | 3 Months Ended June 30 | $1,594 | $1,607 | (1)% | | 6 Months Ended June 30 | $3,107 | $3,229 | (4)% | Revenues by Geographic Area (Six Months Ended June 30, $ in millions) | Geographic Area | 2025 | 2024 | % Change | | :----------------------------------- | :--- | :--- | :------- | | Europe and Canada | $795 | $907 | (12.3)% | | United States | $826 | $758 | 9.0% | | Asia Pacific and Japan | $502 | $546 | (8.1)% | | China | $409 | $421 | (2.9)% | | Latin America, Middle East, Russia, and Africa | $524 | $525 | (0.2)% | - Key product performance (Six Months Ended June 30, 2025 vs. 2024): Nexplanon/Implanon NXT sales **increased 6% to $488 million**; Follistim AQ sales **increased 31% to $142 million**; NuvaRing sales **declined 26% to $50 million** due to generic competition. Hadlima sales **increased 66% to $96 million**; Atozet sales **declined 40% to $162 million** due to loss of exclusivity[43](index=43&type=chunk) [6. Stock-Based Compensation Plans](index=13&type=section&id=6.%20Stock-Based%20Compensation%20Plans) Stock-based compensation expense decreased for both the three and six months ended June 30, 2025, compared to the prior year. The company has $172 million in unrecognized compensation costs Stock-Based Compensation Expense ($ in millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Cost of sales | $4 | $5 | $8 | $9 | | Selling, general and administrative | 14 | 18 | 30 | 36 | | Research and development | 4 | 5 | 8 | 9 | | Total | $22 | $28 | $46 | $54 | | Income tax benefits | $5 | $6 | $10 | $11 | - Unrecognized compensation costs as of June 30, 2025, were **$172 million**, to be recognized over a weighted average vesting period of **2.14 years**[48](index=48&type=chunk) [7. Restructuring](index=14&type=section&id=7.%20Restructuring) Organon implemented additional restructuring initiatives in Q1 2025, resulting in an approximate 6% headcount reduction and $88 million in costs for the six months, aiming for $200 million in annual savings - Implemented additional restructuring initiatives in Q1 2025, leading to an **approximate 6% headcount reduction**[49](index=49&type=chunk) Restructuring Costs and Severance Liabilities ($ in millions) | Metric | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | | :-------------------------------- | :------------------------------- | :----------------------------- | | Restructuring costs | $2 | $88 | | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :-------------- | :---------------- | | Ending Balance (Severance Liabilities) | $30 | $14 | - Restructuring activities combined with other cost savings initiatives are expected to result in **approximately $200 million of annual savings**[129](index=129&type=chunk) [8. Taxes on Income](index=15&type=section&id=8.%20Taxes%20on%20Income) The effective income tax rate significantly increased for both the three and six months ended June 30, 2025, compared to 2024, influenced by foreign earnings, GILTI, and a tax amortization benefit. The company is evaluating the impact of the recently signed OBBBA Effective Income Tax Rates | Period | 2025 | 2024 | | :-------------------------------- | :--- | :--- | | Three Months Ended June 30 | 37.0% | 17.3% | | Six Months Ended June 30 | 29.8% | 16.0% | - The 2025 year-to-date effective tax rate was **favorably impacted by a tax amortization benefit**[51](index=51&type=chunk) - The company is evaluating the impacts of the **One Big Beautiful Bill Act (OBBBA)**, signed July 4, 2025, on its U.S. cash tax liability and income tax provision[52](index=52&type=chunk)[134](index=134&type=chunk) [9. Inventories](index=15&type=section&id=9.%20Inventories) Total inventories increased to $1,694 million as of June 30, 2025, from $1,536 million at December 31, 2024, with a significant portion classified as other assets not expected to be converted within one year. The Dermavant acquisition added $97 million in inventory Inventories ($ in millions) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :-------------- | :---------------- | | Finished goods | $804 | $764 | | Raw materials | 12 | 25 | | Work in process | 809 | 675 | | Supplies | 69 | 79 | | Total (approximates current cost) | $1,694 | $1,543 | | Recognized as: | | | | Inventories (current) | $1,454 | $1,321 | | Other assets (non-current) | $240 | $215 | - The Dermavant acquisition included **$97 million** of inventory, with a **$63 million** purchase accounting inventory fair value adjustment[54](index=54&type=chunk) [10. Long-Term Debt and Short-Term Borrowings](index=16&type=section&id=10.%20Long-Term%20Debt%20and%20Short-Term%20Borrowings) Total principal long-term debt and short-term borrowings remained stable at $8,896 million as of June 30, 2025. The company repurchased $242 million of 2031 notes and terminated the NovaQuest Funding Agreement, resulting in pre-tax gains Long-Term Debt and Short-Term Borrowings ($ in millions) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :-------------- | :---------------- | | Total principal long-term debt and short-term borrowings | $8,896 | $8,880 | | Less: Current portion of long-term debt and short-term borrowings | 115 | 20 | | Total Long-term debt, net of current portion | $8,781 | $8,860 | - Repurchased and cancelled **$242 million** of **5.125% notes due 2031**, resulting in a **$42 million pre-tax gain** on extinguishment of debt[58](index=58&type=chunk) - Voluntarily repaid and terminated the NovaQuest Funding Agreement (**$103 million**), resulting in a **$4 million pre-tax gain** on extinguishment of debt[59](index=59&type=chunk) - The weighted-average interest rate on total borrowings as of June 30, 2025, is **5.0%**[61](index=61&type=chunk) - The company is in compliance with all financial covenants[62](index=62&type=chunk) [11. Financial Instruments](index=17&type=section&id=11.%20Financial%20Instruments) Organon uses forward contracts and cross-currency swaps to manage foreign currency risk. Contingent consideration liabilities from business combinations are measured at fair value using Level 3 inputs - Uses forward exchange contracts to partially mitigate foreign currency exposure, with notional amounts of **$1.8 billion** (June 30, 2025) and **$1.4 billion** (December 31, 2024)[66](index=66&type=chunk) - Euro-denominated debt instruments (**€720 million term loan** and **€1.25 billion notes**) and cross-currency swaps are designated as hedges of the net investment in euro-denominated subsidiaries[67](index=67&type=chunk)[68](index=68&type=chunk) Contingent Consideration (Level 3) Reconciliation ($ in millions) | Metric | June 30, 2025 | | :-------------------------------- | :-------------- | | Beginning balance | $394 | | Accretion and changes in fair value in Other (income) expense, net | 23 | | Payment | (75) | | Ending balance | $342 | - Factored accounts receivable: **$280 million** as of June 30, 2025, and **$186 million** as of December 31, 2024[73](index=73&type=chunk) [12. Accumulated Other Comprehensive Income (Loss)](index=20&type=section&id=12.%20Accumulated%20Other%20Comprehensive%20Income%20(Loss)) Accumulated other comprehensive loss improved to $(572) million as of June 30, 2025, from $(649) million at January 1, 2025, primarily due to a positive cumulative translation adjustment Accumulated Other Comprehensive Income (Loss) ($ in millions) | Metric | Balance at January 1, 2025 | Other Comprehensive Income, net of taxes (YTD) | Balance at June 30, 2025 | | :-------------------------------- | :------------------------- | :------------------------------------------- | :----------------------- | | Employee Benefit Plans | $(17) | — | $(17) | | Cumulative Translation Adjustment | $(632) | $77 | $(555) | | Total Accumulated Other Comprehensive (Loss) Income | $(649) | $77 | $(572) | [13. Samsung Collaboration](index=20&type=section&id=13.%20Samsung%20Collaboration) Organon collaborates with Samsung Bioepis for biosimilar development and commercialization, sharing gross profits. Sales from this collaboration decreased for the six months ended June 30, 2025 - Agreement with Samsung Bioepis to develop and commercialize multiple biosimilar candidates, with Organon having exclusive worldwide commercialization rights (with certain geographic exceptions)[75](index=75&type=chunk) - Gross profits are **shared equally** in most markets, with exceptions in certain markets in Brazil (**65% to Samsung Bioepis, 35% to Organon**)[75](index=75&type=chunk) Samsung Collaboration Summarized Financial Information ($ in millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Sales | $170 | $165 | $311 | $335 | | Cost of sales | 102 | 107 | 192 | 217 | | Selling, general and administrative | 20 | 20 | 38 | 42 | - Potential future regulatory milestone payments of **$25 million** remain under the agreement[76](index=76&type=chunk) [14. Third-Party Arrangements](index=21&type=section&id=14.%20Third-Party%20Arrangements) Organon continues to manage third-party arrangements stemming from its separation from Merck, with one jurisdiction remaining under an Interim Operating Model Agreement. Sales and cost of sales from manufacturing agreements with Merck decreased - The Separation from Merck & Co., Inc. was completed, with **only one jurisdiction** remaining under an Interim Operating Model Agreement as of June 30, 2025[79](index=79&type=chunk) Amounts Due Under Third-Party Arrangements with Merck ($ in millions) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :-------------- | :---------------- | | Due from Merck in Accounts receivable | $157 | $148 | | Due to Merck in Accounts payable | $421 | $362 | Sales and Cost of Sales from Merck Manufacturing and Supply Agreements ($ in millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Sales | $19 | $28 | $37 | $57 | | Cost of sales | 16 | 25 | 32 | 52 | [15. Contingencies](index=21&type=section&id=15.%20Contingencies) Organon is involved in various legal proceedings, including product liability (Fosamax, Nexplanon/Implanon), securities and stockholder derivative litigation, governmental inquiries, and patent litigation (Nexplanon). The company accrues for probable and estimable losses and maintains a legal defense reserve - Product Liability Litigation: Fosamax litigation includes approximately **974 federal**, **1,714 New Jersey**, and **272 California cases**. A **Master Settlement Agreement** was signed on July 28, 2025, with New Jersey state and federal plaintiffs' lawyers[87](index=87&type=chunk)[88](index=88&type=chunk) - Product Liability Litigation: Nexplanon/Implanon lawsuits include **two filed and 56 unfiled Implanon cases**, **one Nexplanon case in California**, and **18 international cases**[90](index=90&type=chunk) - Securities and Stockholder Derivative Litigation: **Two stockholder class action lawsuits and two stockholder derivative lawsuits** were filed in Q2 2025, alleging materially false and misleading statements regarding capital allocation and debt reduction strategies[91](index=91&type=chunk)[92](index=92&type=chunk) - Patent Litigation: Sued Xiromed Pharma Espana, S.L. in April 2025 for **infringing Nexplanon patents**, triggering a **30-month stay of regulatory approval** for a generic version[95](index=95&type=chunk) Legal Defense Reserves ($ in millions) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :-------------- | :---------------- | | Legal defense reserve | $8 | $7 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion and analysis of financial condition and results, highlighting sales, acquisitions, LOE, expenses, liquidity, and strategy Worldwide Sales Overview ($ in millions) | Period | 2025 | 2024 | % Change | % Change Excluding Foreign Exchange | | :-------------------------------- | :--- | :--- | :------- | :---------------------------------- | | Three Months Ended June 30 | $1,594 | $1,607 | (1)% | (1)% | | Six Months Ended June 30 | $3,107 | $3,229 | (4)% | (3)% | - Sales increases for the six months ended June 30, 2025, were primarily driven by **Vtama (Dermavant acquisition)**, **Hadlima (biosimilar launch)**, **Emgality (Lilly rights acquisition)**, **Follistim AQ**, and **Nexplanon**[105](index=105&type=chunk) - Sales decreases for the six months ended June 30, 2025, were primarily due to **Atozet (LOE)**, **Singulair** (lower demand, price reductions), and **Ontruzant** (unfavorable pricing, lower volume)[105](index=105&type=chunk)[106](index=106&type=chunk) - Loss of exclusivity (LOE) negatively impacted sales by **approximately $60 million** and **approximately $123 million** during the three and six months ended June 30, 2025, respectively, primarily from Atozet and Rosuzet[106](index=106&type=chunk) - Cost of sales **increased 8%** (3 months) and **4%** (6 months) due to amortization of inventory fair value adjustment related to Dermavant acquisition (**$10 million and $19 million**, respectively), a **$9 million impairment charge**, and amortization of intangible assets[124](index=124&type=chunk) - Research and development expenses **decreased 18%** (3 months) and **16%** (6 months) due to lower headcount-related expenses and clinical study activity[127](index=127&type=chunk) - The Phase 2 ELENA study for OG-6219 in endometriosis-related pain **did not meet its primary efficacy endpoint**, leading to **discontinuation of the program**[127](index=127&type=chunk) - Restructuring costs for the six months ended June 30, 2025, were **$88 million**, primarily headcount-related, with **expected annual savings of approximately $200 million**[129](index=129&type=chunk) - Net cash provided by operating activities was **$295 million** for the six months ended June 30, 2025, a **decrease from $408 million** in the prior year, due to lower operating income partially offset by active cash cycle management[138](index=138&type=chunk) - The Board of Directors declared a quarterly dividend of **$0.02 per share**, payable on September 11, 2025[143](index=143&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=34&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) There have been no material changes to the company's market risk exposure during the quarter ended June 30, 2025 - **No material changes** in market risk during the quarter ended June 30, 2025[147](index=147&type=chunk) [Item 4. Controls and Procedures](index=34&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of June 30, 2025, and there were no material changes in internal control over financial reporting during the quarter - Disclosure controls and procedures were **effective** as of June 30, 2025[148](index=148&type=chunk) - **No material changes** in internal control over financial reporting occurred during the quarter ended June 30, 2025[149](index=149&type=chunk) PART II - OTHER INFORMATION Covers legal proceedings, risk factors, other information, and exhibits, providing additional context to the financial report [Item 1. Legal Proceedings](index=34&type=section&id=Item%201.%20Legal%20Proceedings) This item incorporates by reference the detailed discussion of legal proceedings from Note 15 to the Condensed Consolidated Financial Statements - Information on legal proceedings is **incorporated by reference from Note 15**, 'Contingencies,' to the Condensed Consolidated Financial Statements[150](index=150&type=chunk) [Item 1A. Risk Factors](index=34&type=section&id=Item%201A.%20Risk%20Factors) Company profitability and cash flows depend on key products, facing risks from competition, LOE, market changes, and sales strategy - Key products such as Nexplanon, Arcoxia, Singulair, and the ezetimibe family generate a **significant amount of profits and cash flows**, making the company vulnerable to adverse events[152](index=152&type=chunk) - Adverse events that could affect key products include **expanded brand and class competition**, **generic competition (e.g., LOE for Atozet)**, **increased costs**, **product shortages**, and **market/political events** like tariffs, tax law changes, and healthcare reforms[153](index=153&type=chunk) - Sales strategies, including product discount programs and managing wholesaler inventory levels, are adapted to address changing market conditions, but **carry risks if demand does not keep pace with inventory purchases**[154](index=154&type=chunk) [Item 5. Other Information](index=35&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the three months ended June 30, 2025 - **No directors or officers adopted or terminated** a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement during the three months ended June 30, 2025[155](index=155&type=chunk) [Item 6. Exhibits](index=36&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including various certifications, incentive plans, severance programs, and XBRL documents - Includes **certifications of the Principal Executive Officer (CEO) and Principal Financial Officer (CFO)** pursuant to **Sections 302 and 906 of the Sarbanes-Oxley Act of 2002**[157](index=157&type=chunk) - Lists the **Amended and Restated Organon & Co. 2021 Incentive Stock Plan**[157](index=157&type=chunk) - Includes **XBRL Instance Document and various XBRL Taxonomy Extension Documents** (Schema, Calculation Linkbase, Definition Linkbase, Label Linkbase, Presentation Linkbase)[157](index=157&type=chunk) [Signatures](index=37&type=section&id=Signatures) The report is duly signed on behalf of Organon & Co. by Lynette Holzbaur, Senior Vice President Finance - Corporate Controller, and Matthew Walsh, Chief Financial Officer, on August 6, 2025 - The report was signed by **Lynette Holzbaur, Senior Vice President Finance - Corporate Controller, and Matthew Walsh, Chief Financial Officer**, on **August 6, 2025**[162](index=162&type=chunk)

Core Insights - Organon reported fiscal Q2 2025 results with GAAP revenue of $1.59 billion, exceeding analyst expectations, but both revenue and earnings declined compared to the previous year [1][2] - The company is focusing on new product growth while facing challenges with its legacy product portfolio [1][4] Financial Performance - GAAP revenue for Q2 2025 was $1.59 billion, slightly down from $1.61 billion in Q2 2024, but above estimates by $42 million [2][5] - Non-GAAP adjusted EPS was $1.00, beating the consensus estimate of $0.95, but down 11% from $1.12 in Q2 2024 [2][5] - Net income (GAAP) fell to $145 million from $195 million year-over-year, a decline of 25.6% [2][10] - Adjusted EBITDA (non-GAAP) increased by 1.8% to $522 million, with a margin improvement to 32.7% [2][9] Business Segments - Women's Health segment generated $462 million in sales, up 3%, driven by a 15% increase in fertility treatments [5][6] - Biosimilars revenue rose 5% to $173 million, primarily due to Hadlima, which contributed $50 million [6][8] - Established brands revenue was $936 million, down 3% year-over-year, with notable declines in Atozet and Singulair due to competition [7][8] Strategic Focus - Organon is prioritizing growth in women's health, diversifying its biosimilars portfolio, and managing its mature product lines amid generic competition [4][12] - The company aims to launch new products and expand internationally while managing costs and reducing debt [4][11] Outlook - Full-year revenue guidance for 2025 was raised to $6.275 billion–$6.375 billion, reflecting improved expectations due to foreign exchange factors [12] - Adjusted EBITDA margin guidance remains at 31.0%–32.0%, with a focus on achieving a net leverage ratio below 4.0x by year-end 2025 [12][13]

Core Insights - Organon reported $1.59 billion in revenue for Q2 2025, reflecting a year-over-year decline of 0.8% and an EPS of $1.00, down from $1.12 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $1.55 billion by 2.63%, while the EPS surpassed the consensus estimate of $0.94 by 6.38% [1] Revenue Performance by Segment - Established Brands in the U.S. for Respiratory (Singulair) generated $2 million, slightly above the $1.95 million estimate, with no year-over-year change [4] - Women's Health International for Nexplanon/Implanon NXT achieved $77 million, exceeding the $75.7 million estimate, marking a 10% increase year-over-year [4] - Women's Health U.S. for NuvaRing reported $7 million, matching estimates but showing a 30% decline year-over-year [4] - Women's Health International for Follistim AQ reached $43 million, surpassing the $41.53 million estimate, reflecting a 7.5% increase year-over-year [4] - Women's Health for Nexplanon/Implanon NXT totaled $240 million, below the $258.98 million estimate, with a slight decline of 0.8% year-over-year [4] - Women's Health for Follistim AQ generated $74 million, exceeding the $69.57 million estimate, showing a 19.4% increase year-over-year [4] - Total revenue for Established Brands was $936 million, above the $905.64 million estimate, but down 2.8% year-over-year [4] - Biosimilars total revenue reached $173 million, exceeding the $153.98 million estimate, with a year-over-year increase of 5.5% [4] - Total revenue for Women's Health was $462 million, slightly below the $471.79 million estimate, with a year-over-year increase of 2.9% [4] - Other revenue totaled $23 million, above the $21.74 million estimate, but down 25.8% year-over-year [4] - Women's Health for NuvaRing reported $28 million, exceeding the $22.99 million estimate, with a 3.5% decline year-over-year [4] - Biosimilars for Renflexis generated $63 million, surpassing the $56.8 million estimate, but reflecting an 8.7% decline year-over-year [4] Stock Performance - Organon's shares returned -0.5% over the past month, compared to a +1% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Organon (OGN) came out with quarterly earnings of $1 per share, beating the Zacks Consensus Estimate of $0.94 per share. This compares to earnings of $1.12 per share a year ago. These figures are adjusted for non- recurring items. This quarterly report represents an earnings surprise of +6.38%. A quarter ago, it was expected that this pharmaceutical company would post earnings of $0.89 per share when it actually produced earnings of $1.02, delivering a surprise of +14.61%. Ahead of this earnings release, th ...

Financial Data and Key Metrics Changes - Revenue for the second quarter was $1.6 billion, down 1% at constant currency, primarily due to the loss of exclusivity of Adazet in the EU [6][21] - Adjusted EBITDA for the quarter was $522 million, representing a 32.7% margin, with year-to-date adjusted EBITDA at $1 billion or a 32.4% margin [6][7] - The company is raising its revenue guidance range by $100 million at the midpoint due to favorable operational performance [6][34] Business Line Data and Key Metrics Changes - Women's health franchise grew 2% at constant currency, with the fertility business growing 15% driven by increased demand [9][10] - Sales of Nexplanon declined 1% at constant currency in the second quarter, with a 5% decline in the U.S. but a 10% growth outside the U.S. [11][12] - Biosimilars, particularly HEDLEMA, performed better than expected, generating nearly $100 million, up 68% year-over-year [14][15] Market Data and Key Metrics Changes - The U.S. market for Nexplanon is facing funding constraints from federal and state programs, impacting purchasing decisions [12][51] - Pricing pressure was noted primarily from the loss of exclusivity of Adazet and certain mature products in the U.S. [22] - Volume increased by $90 million in the quarter, representing a growth of about 5.6% [23] Company Strategy and Development Direction - The company is focused on reducing its debt burden, having repaid approximately $350 million of principal on long-term debt instruments [8][9] - A strong emphasis on EBITDA generation is aimed at delivering over $900 million of free cash flow before one-time costs in 2025 [7][8] - The company is committed to building Nexplanon into a billion-dollar franchise, reflecting confidence in its long-term growth potential [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving revenue growth despite challenges from the loss of exclusivity of Adazet [19][40] - The company anticipates continued global growth for Nexplanon, with a five-year indication submission to the FDA expected to enhance market potential [13][54] - Management highlighted the importance of VITAMMA as a growth catalyst and expects significant progress in access objectives [20][19] Other Important Information - The adjusted gross margin for the second quarter was 61.7%, slightly down from 62% in 2024, primarily due to pricing pressures [25] - The company expects total operating expenses to be generally flat with the prior year, aiming for $200 million of operational savings in 2025 [26][30] - The company is on track to achieve a net leverage ratio below four times by year-end 2025 [9][41] Q&A Session Summary Question: Can you talk about incremental sales and marketing investment for VITAMMA? - Management confirmed the start of new telehealth and DTC campaigns and an increase in sales force to support VITAMMA [44][45] Question: Can you elaborate on the federal funding headwinds for Nexplanon? - Management indicated that the decline in U.S. Nexplanon sales was due to a combination of purchase timing and underlying market pressures, but expressed confidence in growth moving forward [50][54] Question: What impact might tariffs have on margins in 2026? - Management stated it is too early to speculate on tariff impacts for 2026, but noted that the EU is the largest import exposure for the company [58] Question: How should we think about free cash flow conversion and one-time items? - Management expects free cash flow to grow in line with the business, with a continued reduction in one-time costs [61] Question: What is the status of the 6219 endometriosis program? - Management confirmed the discontinuation of the program due to lack of efficacy signals [86] Question: Will the FDA update the real-time release study for Nexplanon? - Management is working closely with the FDA for appropriate labeling for the five-year indication but did not comment on specific FDA decisions [87]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $1.6 billion, down 1% at constant currency, primarily due to the loss of exclusivity of Adazet in the EU [5][20] - Adjusted EBITDA for the quarter was $522 million, representing a 32.7% margin, with year-to-date adjusted EBITDA at $1 billion or 32.4% margin [5][6] - The company is raising its revenue guidance by $100 million at the midpoint for the full year based on year-to-date performance and foreign currency movements [5][33] Business Line Data and Key Metrics Changes - Women's health franchise grew 2% at constant currency, with the fertility business growing 15% in Q2 2025 [7][8] - Sales of Nexplanon declined 1% at constant currency in Q2, with a 5% decline in the U.S. but a 10% growth outside the U.S. [10][11] - Biosimilars, particularly HEDLEMA, performed better than expected, generating nearly $100 million, up 68% year-over-year [12][13] Market Data and Key Metrics Changes - The U.S. market for Nexplanon is facing funding constraints from federal and state programs, impacting purchasing decisions [10][11] - Pricing pressure was noted primarily from the loss of exclusivity of Adazet and certain mature products in the U.S. [21][22] - Volume increased by $90 million in Q2, representing a growth of about 5.6%, driven by fertility, HEDLEMA, Emgality, and VITAMMA [22] Company Strategy and Development Direction - The company is focused on reducing its debt burden, having repaid approximately $350 million of long-term debt in Q2 [6][31] - Aiming for a net leverage ratio below four times by year-end and further improvements to 3.5 times or below by 2026 [6][31] - The company is committed to building Nexplanon into a billion-dollar franchise and expanding its market presence [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving free cash flow of over $900 million before one-time costs in 2025 [6][41] - The company is optimistic about the growth potential of VITAMMA and expects to achieve significant access improvements by early 2026 [15][18] - Management acknowledged challenges in the U.S. market due to federal funding issues but remains confident in Nexplanon's long-term growth potential [11][53] Other Important Information - The company expects to see a modest decline in adjusted gross margin in the second half of the year but aims to land closer to the high end of the 60% to 61% range [36][39] - One-time costs related to restructuring are expected to decline, improving free cash flow conversion in the coming years [60][61] Q&A Session Summary Question: Can you talk about incremental sales and marketing investment for VITAMMA? - The company has started new telehealth and DTC campaigns and added more sales representatives, totaling over 125 in the field [44][45] Question: Can you elaborate on the federal funding headwinds for Nexplanon? - The decline in U.S. Nexplanon sales is attributed to both purchase timing and underlying pressures, with confidence in growth despite market confusion [48][52] Question: What is the expected impact of tariffs on margins in 2026? - It is too early to speculate on tariff impacts for 2026, but the EU is the largest import exposure for the company [56][57] Question: How should we think about free cash flow conversion and one-time items? - Free cash flow should grow in line with the business, with a continued reduction in one-time costs expected [60][61] Question: What is the status of the 6219 endometriosis program? - The company has decided to discontinue the program due to lack of efficacy signals [80][82] Question: Will the FDA update the guidance for generics regarding Nexplanon? - The company is working closely with the FDA for the new labeling for the five-year indication, but the FDA will make its own assessment [82][86]

Financial Performance - Revenue was $1.6 billion, down 1% ex-FX, consistent with the phasing of the Loss of Exclusivity (LOE) of Atozet[12] - Adjusted EBITDA was $522 million, representing a 32.7% Adjusted EBITDA margin[12] - The company raised full-year 2025 revenue guidance by $100 million at the midpoint, while the Adjusted EBITDA range was affirmed[12] - The company repaid $345 million of long-term debt and is on track to achieve net leverage below 40x by year-end[12] - Adjusted Gross Margin was 617% for both Q2 2025 and YTD 2025, compared to 620% for Q2 2024 and YTD 2024[30] Segment Performance - Women's Health revenue increased by 3% to $462 million in Q2 2025, and 6% YTD to $925 million[14] - Biosimilars revenue increased by 5% to $173 million in Q2 2025, but decreased 6% YTD to $314 million[18] - Established Brands revenue decreased by 3% to $936 million in Q2 2025, and 7% YTD to $1822 billion[23] Product Performance - Nexplanon revenue decreased 1% to $240 million in Q2 2025, but increased 6% YTD to $488 million[14] - Follistim AQ revenue increased 18% to $74 million in Q2 2025, and 31% YTD to $142 million[14] - Hadlima revenue increased 78% to $50 million in Q2 2025, and 66% YTD to $96 million[18]

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) Organon reported Q2 2025 revenue of $1.594 billion and $1.00 non-GAAP Adjusted diluted EPS, repaid $345 million debt, and raised full-year revenue guidance | Metric | Q2 2025 | | :--- | :--- | | Revenue | $1.594 billion | | GAAP Diluted EPS | $0.56 | | Non-GAAP Adjusted Diluted EPS | $1.00 | | Net Income | $145 million | | Adjusted EBITDA (Non-GAAP) | $522 million | | Adjusted EBITDA Margin (Non-GAAP) | 32.7% | - The company repaid **$345 million** of long-term debt during the quarter and is on track to achieve a net debt to Adjusted EBITDA ratio of less than **4.0x** by the end of 2025, with a further goal of **3.5x** or below by the end of 2026[3](index=3&type=chunk)[4](index=4&type=chunk) - Full-year 2025 revenue guidance was raised to a range of **$6.275 billion** to **$6.375 billion**, primarily based on updated views of foreign exchange rates[4](index=4&type=chunk) [Financial Performance Analysis](index=2&type=section&id=Financial%20Performance%20Analysis) Q2 2025 revenue decreased 1% to $1.594 billion, with growth in Women's Health and Biosimilars offset by Established Brands, while Adjusted EBITDA margin improved to 32.7% [Revenue Analysis](index=2&type=section&id=Revenue%20Analysis) Q2 2025 revenue totaled $1.594 billion, down 1% YoY, with Women's Health and Biosimilars growth offset by Established Brands decline due to loss of exclusivity | Segment | Q2 2025 Revenue ($M) | YoY Change | YoY Change (ex-FX) | | :--- | :--- | :--- | :--- | | Women's Health | $462 | 3% | 2% | | Biosimilars | $173 | 5% | 6% | | Established Brands | $936 | (3)% | (4)% | | **Total Revenue** | **$1,594** | **(1)%** | **(1)%** | - Women's Health growth was driven by the fertility business (**+15% ex-FX**), while Nexplanon® sales declined **1% ex-FX** due to constrained funding for subsidized programs in the U.S[7](index=7&type=chunk) - Biosimilars growth was primarily due to strong performance of Hadlima®, which more than offset expected declines in mature products like Ontruzant® and Renflexis®[8](index=8&type=chunk) - Established Brands revenue declined due to the loss of exclusivity of Atozet™ in key European markets and lower sales of Singulair® in China and Japan[9](index=9&type=chunk) [Profitability Analysis](index=3&type=section&id=Profitability%20Analysis) GAAP net income fell 26% to $145 million, while non-GAAP Adjusted EBITDA increased 2% to $522 million, with margin improving to 32.7% due to reduced operating expenses | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Net Income | $145M | $195M | (26)% | | Diluted EPS | $0.56 | $0.75 | (25)% | | Non-GAAP Adjusted Net Income | $261M | $289M | (10)% | | Non-GAAP Adjusted Diluted EPS | $1.00 | $1.12 | (11)% | | Adjusted EBITDA (Non-GAAP) | $522M | $513M | 2% | | Adjusted EBITDA Margin (Non-GAAP) | 32.7% | 31.9% | +0.8 p.p. | - The year-over-year improvement in Adjusted EBITDA margin was primarily driven by a **3% reduction in operating expenses**[14](index=14&type=chunk) - Lower reported GAAP gross margin was due to higher amortization expense related to prior-year acquisitions and the Dermavant acquisition. Non-GAAP Adjusted gross margin was consistent with the prior year[12](index=12&type=chunk) [Capital Allocation and Financial Position](index=4&type=section&id=Capital%20Allocation%20and%20Financial%20Position) Organon declared a $0.02 per share dividend, repaid **$345 million** in debt, and held **$599 million** cash against **$8.90 billion** debt as of June 30, 2025 - The Board of Directors declared a quarterly dividend of **$0.02 per share**, payable on September 11, 2025[15](index=15&type=chunk) - The company made principal repayments on long-term debt totaling **$345 million** in Q2 2025. This included repurchasing **$242 million** of its 2031 Notes, resulting in a pre-tax gain of **$42 million**[16](index=16&type=chunk) Financial Position (as of June 30, 2025) | Financial Position (as of June 30, 2025) | Amount ($M) | | :--- | :--- | | Cash and cash equivalents | $599 | | Debt | $8,900 | [Full Year 2025 Guidance](index=5&type=section&id=Full%20Year%202025%20Guidance) Organon raised full-year 2025 revenue guidance to **$6.275 billion** - **$6.375 billion** due to reduced foreign exchange headwind, while other non-GAAP metrics remain unchanged Full Year 2025 Guidance Summary | Guidance Metric | Previous Guidance (May 1, 2025) | Current Guidance | | :--- | :--- | :--- | | Revenue | $6.125B - $6.325B | $6.275B - $6.375B | | FX Translation Headwind | ~$200M | ~$50M | | Adjusted EBITDA Margin (Non-GAAP) | 31.0% - 32.0% | Unchanged | - The increase in revenue guidance is attributed to a more favorable foreign exchange outlook, with the expected headwind reduced from **~$200 million** to **~$50 million**[19](index=19&type=chunk) - Guidance for Adjusted Gross Margin, SG&A, R&D, Adjusted EBITDA Margin, Interest, Depreciation, tax rate, and share count remains unchanged[19](index=19&type=chunk) [Appendix: Financial Statements and Reconciliations](index=9&type=section&id=Appendix%3A%20Financial%20Statements%20and%20Reconciliations) This appendix provides detailed unaudited financial statements, including consolidated income, sales breakdowns, and GAAP to non-GAAP reconciliations [Consolidated Statement of Income](index=9&type=section&id=Consolidated%20Statement%20of%20Income) The consolidated statement of income presents key financial results for Q2 and first six months of 2025 versus 2024, including revenues and net income Consolidated Statement of Income (Three Months Ended June 30) | ($ in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenues | $1,594 | $1,607 | | Gross Profit | $874 | $939 | | Income before income taxes | $229 | $235 | | Net income | $145 | $195 | | Diluted EPS | $0.56 | $0.75 | [Sales by Product and Geography](index=10&type=section&id=Sales%20by%20Product%20and%20Geography) This section details Q2 2025 sales revenue by product, including top sellers like Nexplanon, and by geographic region, with Europe and Canada as the largest Top Products (Q2 2025) | Top Products (Q2 2025) | Total Sales ($M) | | :--- | :--- | | Nexplanon/Implanon NXT | $240 | | Atozet | $86 | | Follistim AQ | $74 | | Zetia | $74 | | Singulair | $66 | Geography (Q2 2025) | Geography (Q2 2025) | Total Sales ($M) | YoY Change | | :--- | :--- | :--- | | Europe and Canada | $419 | (8.3)% | | United States | $414 | 6.7% | | Asia Pacific and Japan | $250 | (3.8)% | | China | $204 | (5.6)% | [Reconciliation of GAAP to Non-GAAP Measures](index=12&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) This section provides detailed reconciliations of GAAP to non-GAAP financial metrics, including Adjusted EBITDA and Adjusted Net Income for Q2 2025 Reconciliation to Adjusted EBITDA (Q2 2025) | Reconciliation to Adjusted EBITDA (Q2 2025, $M) | Amount | | :--- | :--- | | **GAAP Reported Net Income** | **$145** | | Depreciation | $33 | | Amortization | $53 | | Interest expense | $131 | | Income tax expense | $84 | | Restructuring and related charges | $6 | | Manufacturing network related | $36 | | Stock-based compensation | $22 | | Other adjustments | $14 | | **Adjusted EBITDA (Non-GAAP)** | **$522** | Reconciliation to Adjusted Net Income (Q2 2025) | Reconciliation to Adjusted Net Income (Q2 2025, $M) | Amount | | :--- | :--- | | **GAAP Reported Net Income** | **$145** | | Cost of sales adjustments | $109 | | SG&A adjustments | $44 | | R&D adjustments | $7 | | Other adjustments | $(31) | | Tax impact on adjustments | $(13) | | **Non-GAAP Adjusted Net Income** | **$261** |

Core Insights - Analysts project Organon (OGN) will report quarterly earnings of $0.94 per share, a decline of 16.1% year over year, with revenues expected to reach $1.55 billion, down 3.4% from the same quarter last year [1] Revenue Projections - Revenue from Women's Health for Nexplanon/Implanon NXT is estimated at $258.98 million, reflecting a year-over-year increase of +7% [4] - Revenue from Women's Health for Follistim AQ is projected to be $69.57 million, indicating a year-over-year increase of +12.2% [4] - Total revenue from Established Brands is expected to be $905.64 million, showing a decline of -6% from the prior-year quarter [4] - Revenue from Biosimilars Total is anticipated to be $153.98 million, representing a decrease of -6.1% from the year-ago quarter [5] - Revenue from Women's Health in the U.S. for Nexplanon/Implanon NXT is estimated at $183.28 million, indicating a year-over-year increase of +7.2% [5] - Geographic Revenue from the U.S. is projected to be $437.92 million, reflecting a year-over-year increase of +12.9% [5] - Revenue from Women's Health in the U.S. for NuvaRing is expected to be $7.00 million, suggesting a decline of -30% year over year [6] - Revenue from Women's Health in the U.S. for Follistim AQ is projected to reach $28.03 million, indicating a year-over-year increase of +27.4% [6] - Revenue from Established Brands in the U.S. for Respiratory- Other is expected to be $8.30 million, reflecting a year-over-year increase of +3.8% [7] - Geographic Revenue from Other International is projected to be $21.74 million, indicating a decline of -37.9% year over year [7] - Revenue from Established Brands International for Non-Opioid Pain, Bone and Dermatology- Other is expected to reach $72.24 million, suggesting a decline of -1% year over year [7] - Revenue from Established Brands International for Non-Opioid Pain, Bone and Dermatology- Diprospan is projected to be $37.63 million, reflecting a year-over-year increase of +1.7% [8] Stock Performance - Over the past month, Organon shares have returned -2.6%, contrasting with the Zacks S&P 500 composite's +2.3% change [8] - Organon currently holds a Zacks Rank 2 (Buy), indicating potential outperformance against the overall market in the near future [8]

Company Performance - Organon (OGN) closed at $9.70, reflecting a -3.39% change from the previous day's closing price, underperforming the S&P 500's daily loss of 0.37% [1] - The stock has decreased by 1.08% over the past month, lagging behind the Medical sector's loss of 0.88% and the S&P 500's gain of 2.68% [1] Earnings Forecast - Organon is expected to release earnings on August 5, 2025, with a predicted EPS of $0.94, indicating a 16.07% decline compared to the same quarter last year [2] - Revenue is anticipated to be $1.55 billion, reflecting a 3.35% decrease from the same quarter last year [2] Full Year Estimates - For the full year, analysts project earnings of $3.83 per share and revenue of $6.24 billion, marking changes of -6.81% and -2.48% respectively from the previous year [3] Analyst Estimates - Recent changes to analyst estimates for Organon indicate short-term business trends, with positive revisions suggesting analysts' confidence in the company's performance [4] Zacks Rank and Valuation - Organon currently holds a Zacks Rank of 2 (Buy), with a consensus EPS projection that has increased by 0.55% in the past 30 days [6] - The company is trading at a Forward P/E ratio of 2.62, significantly lower than the industry average of 15.82, indicating a potential discount [7] Industry Context - The Medical Services industry, part of the Medical sector, has a Zacks Industry Rank of 94, placing it in the top 39% of over 250 industries [8]