Core Insights - Organon reported $1.59 billion in revenue for Q4 2024, a slight year-over-year decline of 0.4% but a positive surprise of +1.68% over the Zacks Consensus Estimate of $1.57 billion [1] - The earnings per share (EPS) for the quarter was $0.90, which is an increase from $0.88 a year ago, and represents a surprise of +4.65% over the consensus estimate of $0.86 [1] Revenue Performance by Segment - Revenue from Established Brands in the U.S. for Respiratory was $13 million, exceeding the estimated $9.49 million, marking a significant year-over-year increase of +62.5% [4] - Revenue from Biosimilars in the U.S. for Renflexis was $52 million, below the estimated $57.86 million, reflecting a year-over-year decline of -17.5% [4] - International revenue from Women's Health for NuvaRing was $18 million, surpassing the estimated $16.25 million, but showing a year-over-year decrease of -5.3% [4] - U.S. revenue from Women's Health for NuvaRing was $6 million, significantly lower than the estimated $8.33 million, indicating a year-over-year decline of -62.5% [4] - Revenue from Women's Health for Nexplanon/Implanon NXT was $258 million, exceeding the estimated $239.15 million, with a year-over-year increase of +11.7% [4] - Total revenue from Established Brands was $934 million, above the estimated $895.83 million, representing a year-over-year increase of +2.1% [4] - Revenue from Women's Health for NuvaRing was $24 million, slightly below the estimated $24.58 million, with a year-over-year decline of -31.4% [4] - Revenue from Women's Health for Ganirelix Acetate Injection was $28 million, exceeding the estimated $26.34 million, showing a year-over-year increase of +27.3% [4] - Revenue from Biosimilars for Renflexis was $65 million, below the estimated $73.61 million, reflecting a year-over-year decline of -15.6% [4] - Revenue from Biosimilars for Ontruzant was $34 million, slightly below the estimated $35.90 million, with a year-over-year decline of -45.2% [4] - Revenue from Biosimilars for Brenzys was $15 million, significantly lower than the estimated $22.07 million, indicating a year-over-year decline of -46.4% [4] - Revenue from Biosimilars for Aybintio was $6 million, below the estimated $10.13 million, reflecting a year-over-year decline of -33.3% [4] Stock Performance - Over the past month, Organon shares have returned -6.6%, contrasting with the Zacks S&P 500 composite's +3.9% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Company Performance - Organon reported quarterly earnings of $0.90 per share, exceeding the Zacks Consensus Estimate of $0.86 per share, and showing an increase from $0.88 per share a year ago, representing an earnings surprise of 4.65% [1] - The company posted revenues of $1.59 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.68%, and compared to year-ago revenues of $1.6 billion [2] - Over the last four quarters, Organon has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Outlook - Organon shares have declined approximately 1.5% since the beginning of the year, while the S&P 500 has gained 2.9% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.92 on revenues of $1.58 billion, and for the current fiscal year, it is $4.02 on revenues of $6.35 billion [7] Industry Context - The Medical Services industry, to which Organon belongs, is currently ranked in the bottom 39% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Organon Cautionary Note Regarding Non-GAAP Financial Measures This presentation 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 U.S. generally accepted accounting principles ("GAAP"). Specifically, the company makes use of the non-GAAP financial measures Adjusted EBITDA, Adjusted EBITDA margin, Adjusted gross margin ...

Revenue Performance - Full year 2024 revenue was $6.4 billion, an increase of 2% as-reported and 3% at constant currency compared to 2023[18]. - Fourth quarter 2024 revenue was $1.592 billion, flat on both an as-reported and ex-FX basis compared to Q4 2023[6]. - Women's Health revenue for full year 2024 increased 4% as-reported and 5% at constant currency, driven by Nexplanon® growth of 17%[19]. - Biosimilars revenue increased 12% for full year 2024, primarily due to growth in Hadlima following its U.S. launch in July 2023[21]. - The full-year 2024 revenues reached $6,403 million, representing an increase of 2.2% from $6,263 million in 2023[49]. - Total revenues for the three months ended December 31, 2024, were $1,592 million, a slight decrease from $1,598 million in the same period of 2023[55]. - The U.S. market generated $416 million in revenues for the three months ended December 31, 2024, compared to $411 million in 2023, reflecting a growth of 1.2%[55]. - Revenues from Europe and Canada were $420 million for the three months ended December 31, 2024, compared to $414 million in 2023, indicating a growth of 1.4%[55]. - The Asia Pacific and Japan region reported revenues of $244 million for the three months ended December 31, 2024, down from $261 million in 2023, a decline of 6.5%[55]. Financial Metrics - Full year 2024 Adjusted EBITDA was $1.96 billion, representing a 30.6% Adjusted EBITDA margin[4]. - Non-GAAP Adjusted diluted earnings per share for full year 2024 was $4.11, a decrease of 1% compared to 2023[24]. - Adjusted EBITDA margin for full year 2025 is expected to range from 31.0% to 32.0%[35]. - The diluted earnings per share (EPS) for Q4 2024 was $0.42, down from $2.13 in Q4 2023, while full-year diluted EPS was $3.33, compared to $3.99 in 2023[49]. - Non-GAAP adjusted net income for the year ended December 31, 2024 was $1,065 million, slightly up from $1,061 million in 2023, indicating a growth of 0.4%[62]. - Non-GAAP diluted earnings per share for Q4 2024 was $0.90, compared to $0.88 in Q4 2023, representing an increase of 2.3%[63]. - Adjusted EBITDA for Q4 2024 was $448 million, nearly unchanged from $449 million in Q4 2023, maintaining an adjusted EBITDA margin of 28.1%[65]. Profitability - Gross profit for Q4 2024 was $896 million, down 2.1% from $915 million in Q4 2023, while full-year gross profit was $3,715 million, a decrease of 0.9% from $3,748 million[49]. - GAAP gross profit for the three months ended December 31, 2024, was $896 million, compared to $915 million in 2023, resulting in a GAAP gross margin of 56.3%[57][59]. - Adjusted non-GAAP gross profit for the same period was $965 million, with an adjusted non-GAAP gross margin of 60.6%[57][59]. - GAAP reported net income for Q4 2024 was $109 million, compared to $546 million in Q4 2023, reflecting a decrease of 80.1%[62]. - Full-year net income at $864 million compared to $1,023 million in 2023[49]. Expenses and Costs - Research and development expenses for Q4 2024 were $130 million, slightly lower than $134 million in Q4 2023, with full-year R&D expenses totaling $469 million, down from $528 million[49]. - Selling, general and administrative expenses for the three months ended December 31, 2024, were $470 million, slightly up from $469 million in 2023[59]. - Research and development adjustments for Q4 2024 amounted to $11 million, up from $7 million in Q4 2023, showing a 57.1% increase[62]. - Restructuring costs for Q4 2024 were $8 million, significantly lower than $58 million in Q4 2023, a decrease of 86.2%[65]. - Spin-related costs for the year ended December 31, 2024 totaled $121 million, down from $254 million in 2023, a reduction of 52.4%[66]. - Interest expense for the year ended December 31, 2024 was $520 million, slightly down from $527 million in 2023, a decrease of 1.3%[65]. Cash and Debt Position - As of December 31, 2024, cash and cash equivalents were $675 million, with total debt at $8.9 billion[31]. Strategic Initiatives - Organon is focusing on expanding its portfolio in women's health and biosimilars, with over 70 medicines and products currently offered[37]. - The company is pursuing collaborations with biopharmaceutical partners to leverage its scale in fast-growing international markets[37]. - Organon has recently acquired Dermavant Sciences Ltd., which is part of its strategy to enhance its product offerings[45]. - The company has provided non-GAAP financial measures to enhance understanding of its financial performance, including Adjusted EBITDA and Adjusted net income[39].

Company Performance - Organon (OGN) closed at $14.62, reflecting a -1.81% change from the previous day, underperforming compared to the S&P 500's daily loss of 0.95% [1] - The stock has decreased by 6.94% over the past month, contrasting with the Medical sector's gain of 5.16% and the S&P 500's gain of 1.86% [1] Earnings Forecast - Organon is expected to release its earnings on February 13, 2025, with projected earnings per share (EPS) of $0.86, indicating a 2.27% decrease from the same quarter last year [2] - The consensus estimate for quarterly revenue is $1.57 billion, down 2.03% from the previous year [2] Analyst Estimates - Recent changes to analyst estimates for Organon are crucial as they reflect short-term business trends and analysts' confidence in the company's performance [3] - A 2.27% decline in the Zacks Consensus EPS estimate has been noted over the past month, with Organon currently holding a Zacks Rank of 3 (Hold) [5] Valuation Metrics - Organon has a Forward P/E ratio of 3.7, significantly lower than the industry's average Forward P/E of 17.62, indicating a valuation discount [6] - The company has a PEG ratio of 0.78, compared to the Medical Services industry's average PEG ratio of 1.6 [6] Industry Context - The Medical Services industry, part of the Medical sector, holds a Zacks Industry Rank of 181, placing it in the bottom 28% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Group 1: Company Performance - Organon (OGN) closed at $15.97, reflecting a +0.82% increase, outperforming the S&P 500's gain of 0.53% [1] - Over the past month, Organon shares increased by 6.17%, surpassing the Medical sector's gain of 2.85% and the S&P 500's gain of 1.24% [1] Group 2: Upcoming Earnings Report - Organon is set to release its earnings report on February 13, 2025, with projected earnings per share (EPS) of $0.87, indicating a 1.14% decrease from the same quarter last year [2] - The consensus estimate for revenue is $1.57 billion, down 1.69% from the prior-year quarter [2] Group 3: Analyst Estimates and Stock Performance - Recent changes to analyst estimates for Organon are crucial for investors, as positive revisions indicate optimism about the company's outlook [3] - The Zacks Rank system, which reflects these estimate changes, provides actionable ratings for investors [4] Group 4: Zacks Rank and Valuation - Organon currently holds a Zacks Rank of 4 (Sell), with a 2.72% decrease in the consensus EPS estimate over the last 30 days [5] - The company has a Forward P/E ratio of 3.95, significantly lower than the industry average of 17.47, indicating it is trading at a discount [6] - Organon's PEG ratio is 0.83, compared to the Medical Services industry's average PEG ratio of 1.67 [6] Group 5: Industry Context - The Medical Services industry, part of the Medical sector, has a Zacks Industry Rank of 150, placing it in the bottom 41% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Company Performance - Organon (OGN) closed at $16.26, with a gain of +1.82% from the previous trading session, outperforming the S&P 500's loss of 1.46% [1] - Over the past month, Organon shares increased by 6.04%, surpassing the Medical sector's gain of 1.84% and the S&P 500's gain of 1.08% [1] Upcoming Earnings - Organon's earnings report is scheduled for February 13, 2025, with projected earnings per share (EPS) of $0.87, reflecting a 1.14% decrease from the same quarter last year [2] - The consensus estimate for revenue is $1.57 billion, down 1.87% from the prior-year quarter [2] Analyst Estimates - Recent changes to analyst estimates for Organon are important as they reflect near-term business trends, with positive revisions indicating a favorable outlook on the company's health and profitability [3] - The Zacks Consensus EPS estimate has shifted 0.97% downward over the past month, resulting in a Zacks Rank of 4 (Sell) for Organon [5] Valuation Metrics - Organon is currently trading with a Forward P/E ratio of 3.93, significantly lower than the industry average of 17.43 [6] - The company has a PEG ratio of 0.83, compared to the Medical Services industry average PEG ratio of 1.56 [6] Industry Context - The Medical Services industry, part of the Medical sector, has a Zacks Industry Rank of 159, placing it in the bottom 37% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

The most recent trading session ended with Organon (OGN) standing at $15.88, reflecting a +0.89% shift from the previouse trading day's closing. The stock's performance was ahead of the S&P 500's daily gain of 0.88%. Elsewhere, the Dow gained 1.24%, while the tech-heavy Nasdaq added 0.65%.Prior to today's trading, shares of the pharmaceutical company had gained 7.07% over the past month. This has outpaced the Medical sector's loss of 0.32% and the S&P 500's gain of 1.17% in that time.Analysts and investors ...

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].