If you like what you have just read and want to receive at least 4 exclusive stock tips every week focused on Pharma, Biotech and Healthcare, then join me at my marketplace channel, Haggerston BioHealth . Invest alongside the model portfolio or simply access the investment bank-grade financial models and research. I hope to see you there.I have been tracking the progress of Organon (NYSE: OGN ), spun out of Pharma giant Merck ( MRK ), ever since it first began trading as a separate entity back in MayThe gro ...

Key Points Company and Industry 1. **Company**: Organon & Co. (NYSE:OGN) 2. **Industry**: Healthcare, specifically pharmaceuticals and biotechnology 3. **Event**: JPMorgan Annual Healthcare Conference Call 4. **Date**: January 13, 2025 5. **Time**: 6:45 PM ET Core Views and Arguments 1. **Solid 2024 Performance**: CEO Kevin Ali highlights a strong 2024, particularly growth in Nexplanon, the company's core product, with a 15% increase in sales both domestically and internationally [5]. 2. **Nexplanon Growth**: Nexplanon's sales growth is attributed to its strong performance, with a significant increase in the third quarter of 2024 [5]. 3. **Emgality Deal**: Organon's partnership with Lilly on Emgality is expected to generate approximately $100 million in revenue for the year 2024, with potential for expansion into additional territories, including emerging markets [5]. Other Important Content 1. **Management Team**: The call features CEO Kevin Ali and CFO Matt Walsh from Organon & Co. [1]. 2. **Conference Participants**: The call is hosted by Chris Schott from JPMorgan [1]. 3. **Focus on 2025**: The conversation primarily focuses on Organon's business outlook and performance in 2024, with a forward-looking perspective towards 2025 [4].

The latest trading session saw Organon (OGN) ending at $15.06, denoting a +0.74% adjustment from its last day's close. The stock outpaced the S&P 500's daily loss of 1.11%. Elsewhere, the Dow lost 0.77%, while the tech-heavy Nasdaq lost 1.49%.The pharmaceutical company's shares have seen a decrease of 6.45% over the last month, not keeping up with the Medical sector's loss of 4.56% and the S&P 500's gain of 0.4%.Market participants will be closely following the financial results of Organon in its upcoming r ...

Group 1 - The article discusses the author's long positions in several pharmaceutical companies, including ABBV, MRK, AMGN, JNJ, and RHHBF, indicating a positive outlook on these stocks [1] - There is a mention of a potential long position in Organon & Co. within the next 72 hours, suggesting an interest in this stock as well [2] Group 2 - The article emphasizes that past performance is not indicative of future results, highlighting the inherent uncertainty in investment outcomes [3] - It clarifies that no specific investment recommendations are provided, and the views expressed may not represent the broader platform's stance [3]

Table of Contents Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________ Form 10-Q ________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For ...

Financial Performance - Organon's Q3 2024 revenue reached $1.6 billion, a 5% increase ex-FX [7] - Adjusted EBITDA for Q3 2024 was $459 million, including $51 million in IPR&D and milestone expenses [7] - The company is on track to deliver approximately $1 billion of free cash flow before one-time spin-related costs for the full year 2024 [16] - Net leverage ratio was approximately 40x as of September 30, 2024 [17] Segment Performance - Women's Health revenue in Q3 2024 was $440 million, a 5% increase (6% ex-FX) compared to Q3 2023 [11, 34] - Nexplanon revenue increased by 10% (11% ex-FX) to $243 million in Q3 2024 [11] - NuvaRing revenue decreased by 45% to $23 million due to generic competition [11] - Jada revenue increased by 24% to $16 million in Q3 2024 [11] - Biosimilars revenue in Q3 2024 was $165 million, a 16% increase (17% ex-FX) compared to Q3 2023 [12, 34] - Hadlima revenue was $40 million in Q3 2024 [12] - Ontruzant revenue decreased by 49% to $20 million [12] - Established Brands revenue in Q3 2024 was $951 million, a 2% increase (3% ex-FX) compared to Q3 2023 [13, 34] Guidance - Full year 2024 revenue is expected to be between $6375 billion and $6425 billion, representing a 31% to 38% increase at constant currency [18, 23] - Adjusted EBITDA margin for full year 2024 is revised to 300% - 310% [29] - R&D expenses for full year 2024 are expected to be between $510 million and $550 million, including $81 million in IPR&D expenses [28, 27]

Core Insights - Organon reported revenue of $1.58 billion for the quarter ended September 2024, reflecting a 4.2% increase year-over-year and surpassing the Zacks Consensus Estimate of $1.56 billion by 1.37% [1] - The company's EPS was $0.87, consistent with the same quarter last year, and exceeded the consensus EPS estimate of $0.85 by 2.35% [1] Revenue Performance - Women's Health revenue from Nexplanon/Implanon NXT in the U.S. was $172 million, exceeding the estimated $164.46 million, marking a 17.8% increase year-over-year [3] - U.S. geographic revenue was $398 million, slightly below the estimated $400.64 million, with a year-over-year increase of 7.6% [3] - Revenue from Women's Health NuvaRing was $7 million, significantly lower than the estimated $10.08 million, representing a 61.1% decrease year-over-year [3] - Revenue from Women's Health Follistim AQ was $26 million, slightly above the estimated $25.52 million, with an 18.2% year-over-year increase [3] - Total revenue from Women's Health was $440 million, below the estimated $452.30 million, reflecting a 5.3% increase year-over-year [3] - Total revenue from Biosimilars was $165 million, slightly below the estimated $168.58 million, with a year-over-year increase of 16.2% [3] Stock Performance - Over the past month, Organon shares have returned -3.5%, contrasting with the Zacks S&P 500 composite's +1% change [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [4]

Core Viewpoint - Organon reported quarterly earnings of $0.87 per share, exceeding the Zacks Consensus Estimate of $0.85 per share, with a year-over-year comparison showing no change in earnings [1] - The company achieved revenues of $1.58 billion for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 1.37% and showing an increase from $1.52 billion a year ago [2] Group 1: Earnings Performance - Organon has surpassed consensus EPS estimates in all four of the last quarters, indicating consistent performance [2] - The recent quarterly report represents an earnings surprise of 2.35%, following a previous surprise of 5.66% when actual earnings were $1.12 compared to an expected $1.06 [1][2] Group 2: Revenue Insights - The company has topped consensus revenue estimates three times over the last four quarters, demonstrating strong revenue growth [2] - The current consensus EPS estimate for the upcoming quarter is $1 on revenues of $1.56 billion, while the estimate for the current fiscal year is $4.22 on revenues of $6.35 billion [7] Group 3: Stock Performance and Outlook - Organon shares have increased by approximately 24.3% since the beginning of the year, outperforming the S&P 500's gain of 21.9% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the market in the near future [6] Group 4: Industry Context - The Medical Services industry, to which Organon belongs, is currently ranked in the bottom 35% of over 250 Zacks industries, which may impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Core Viewpoint - Organon's upcoming quarterly earnings report is anticipated to show a slight decline in earnings per share but a modest increase in revenue compared to the previous year [1] Financial Performance - Expected quarterly earnings of $0.85 per share, a decrease of 2.3% year-over-year [1] - Forecasted revenues of $1.56 billion, reflecting a year-over-year increase of 2.7% [1] - Analysts have revised the consensus EPS estimate upward by 1.1% over the past 30 days [1] Revenue Estimates by Segment - Revenue from Women's Health - Nexplanon/Implanon NXT is estimated at $238.19 million, indicating an 8.3% increase year-over-year [3] - Revenue from Women's Health - Follistim AQ is projected at $66.32 million, showing a 22.8% increase from the prior year [4] - Total revenue from Biosimilars is expected to reach $168.58 million, reflecting an 18.7% increase year-over-year [4] - Total revenue from Women's Health is estimated at $452.30 million, indicating an 8.2% increase from the previous year [5] - Revenue from Women's Health - U.S. - Nexplanon/Implanon NXT is projected at $164.46 million, a 12.6% increase year-over-year [5] - Geographic revenue from the U.S. is expected to be $400.64 million, reflecting an 8.3% increase from the prior year [6] - Revenue from Women's Health - U.S. - NuvaRing is expected to decline to $10.08 million, a decrease of 44% year-over-year [6] - Revenue from Women's Health - U.S. - Follistim AQ is projected at $25.52 million, indicating a 16% increase from the previous year [7] - Revenue from Established Brands - Int'l - Non-Opioid Pain, Bone and Dermatology - Other is expected to be $69.71 million, a slight decrease of 0.4% year-over-year [8] - Revenue from Established Brands - Int'l - Non-Opioid Pain, Bone and Dermatology - Diprospan is projected at $34.34 million, reflecting a 10.8% increase [8] - Revenue from Established Brands - Int'l - Non-Opioid Pain, Bone and Dermatology - Fosamax is expected to be $35.27 million, a decrease of 11.8% year-over-year [9] Stock Performance - Over the past month, Organon's shares have declined by 10.5%, while the Zacks S&P 500 composite has increased by 2% [9] - Organon currently holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [9]

Core Viewpoint - Organon (OGN) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ending September 2024, with the earnings report set to be released on October 31, 2024 [1] Financial Expectations - The consensus estimate for Organon's quarterly earnings is $0.85 per share, reflecting a year-over-year decrease of 2.3% [2] - Expected revenues for the quarter are $1.56 billion, which represents a 2.7% increase from the same quarter last year [2] Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised 1.06% higher, indicating a reassessment by covering analysts [3] - The Most Accurate Estimate for Organon is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -3.76%, suggesting a bearish outlook from analysts [6] Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a favorable Zacks Rank [5] - Organon currently holds a Zacks Rank of 3, making it challenging to predict an earnings beat conclusively [6] Historical Performance - In the last reported quarter, Organon exceeded the expected earnings of $1.06 per share by delivering $1.12, resulting in a surprise of +5.66% [7] - Over the past four quarters, Organon has beaten consensus EPS estimates three times [7] Conclusion - An earnings beat or miss may not solely dictate stock movement, as other factors can influence investor sentiment [8] - Organon does not appear to be a compelling candidate for an earnings beat, and investors should consider additional factors before making investment decisions [8]