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]

NEW YORK, July 22, 2025 (GLOBE NEWSWIRE) -- Levi & Korsinsky, LLP notifies investors in Organon & Co. ("Organon" or the "Company") (NYSE: OGN) of a class action securities lawsuit. CLASS DEFINITION: The lawsuit seeks to recover losses on behalf of Organon investors who were adversely affected by alleged securities fraud between October 31, 2024 and April 30, 2025. Follow the link below to get more information and be contacted by a member of our team: https://zlk.com/pslra-1/organon-co-lawsuit-submission-for ...

NEW YORK , July 22, 2025 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against Organon & Co.("Organon" or the "Company") (NYSE: OGN). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased. Danielle Peyton Pomerantz LLP The class action concerns whether Organon and c ...

Core Viewpoint - A class action securities lawsuit has been filed against Organon & Co. due to alleged securities fraud that negatively impacted investors between October 31, 2024, and April 30, 2025 [1][2]. Group 1: Lawsuit Details - The lawsuit claims that Organon's management made overly positive statements while concealing material adverse facts about the company's capital allocation priorities, particularly regarding a significant debt reduction strategy following the acquisition of Dermavant [2]. - As a result of these actions, Organon reduced its regular quarterly dividend by 70%, leading to a dramatic decline in stock price from $12.93 per share on April 30, 2025, to $9.45 per share on May 1, 2025, representing a drop of over 27% in just one day [2]. Group 2: Next Steps for Investors - Investors who suffered losses during the specified timeframe have until July 22, 2025, to request appointment as lead plaintiff, although participation in any recovery does not require serving in this role [3]. - Class members may be entitled to compensation without any out-of-pocket costs or fees, and there is no obligation to participate [3]. Group 3: Firm Background - Levi & Korsinsky, LLP has a strong track record in securities litigation, having secured hundreds of millions of dollars for shareholders over the past 20 years and consistently ranking among the top securities litigation firms in the United States [4].

Core Viewpoint - A class action lawsuit has been filed against Organon & Co. for allegedly providing misleading statements to investors while concealing material adverse facts regarding the company's capital allocation priorities, particularly concerning its dividend strategy [2][4]. Group 1: Lawsuit Details - The class action lawsuit is on behalf of all individuals and entities who purchased Organon securities between November 3, 2022, and April 30, 2025, with a deadline of July 22, 2025, for investors to apply as lead plaintiffs [2]. - The complaint alleges that the defendants made overwhelmingly positive statements while hiding the true state of Organon's priorities, especially regarding its debt reduction strategy after acquiring Dermavant, which led to a 70% decrease in the regular quarterly dividend [4]. Group 2: Stock Price Impact - Following the announcement of the lawsuit and the revelations regarding the dividend cut, Organon's stock price plummeted from $12.93 per share on April 30, 2025, to $9.45 per share on May 1, 2025, marking a decline of over 27% in just one day [5].

Core Viewpoint - The Gross Law Firm has issued a notice to shareholders of Organon & Co. regarding a class action lawsuit due to misleading statements and a significant reduction in quarterly dividends, which led to a sharp decline in stock price [1][3]. Summary by Relevant Sections Class Period and Allegations - The class period for the lawsuit is from October 31, 2024, to April 30, 2025 [3]. - Allegations include that Organon provided overly positive statements while concealing material adverse facts about its capital allocation priorities, particularly regarding a debt reduction strategy following the acquisition of Dermavant [3]. Impact on Stock Price - Following the announcement of the dividend reduction, Organon's stock price dropped from $12.93 per share on April 30, 2025, to $9.45 per share on May 1, 2025, marking a decline of over 27% in just one day [3]. Next Steps for Shareholders - Shareholders are encouraged to register for the class action by July 22, 2025, to potentially become lead plaintiffs and receive updates on the case [4]. - There is no cost or obligation for shareholders to participate in the case [4]. Firm's Commitment - The Gross Law Firm aims to protect investors' rights and seeks recovery for those who suffered losses due to false or misleading statements by companies [5].

Core Viewpoint - Investors in the Medical Services sector should consider Organon (OGN) and Medpace (MEDP) as potential undervalued stocks, with OGN appearing to be the superior option based on valuation metrics and earnings estimate revisions [1][7]. Valuation Metrics - OGN has a forward P/E ratio of 2.47, significantly lower than MEDP's forward P/E of 24.59, indicating that OGN may be undervalued relative to MEDP [5]. - The PEG ratio for OGN is 0.94, while MEDP's PEG ratio is 5.64, suggesting that OGN's expected earnings growth is more favorable compared to its price [5]. - OGN's P/B ratio is 4.54, compared to MEDP's P/B of 15.1, further highlighting OGN's more attractive valuation [6]. Analyst Outlook - OGN currently holds a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while MEDP has a Zacks Rank of 3 (Hold), suggesting a less favorable outlook [3]. - The stronger estimate revision activity for OGN, combined with its attractive valuation metrics, positions it as a more appealing choice for value investors [7].