Organon & Co. (OGN) Presents at Piper Sandler 34th Annual Healthcare Conference

Summary of Organon & Co. Conference Call Company Overview - Company: Organon & Co. (NYSE: OGN) - Participants: Kevin Ali (CEO), Matt Walsh (CFO) - Event: Piper Sandler 34th Annual Healthcare Conference - Date: November 29, 2022 Key Points Business Development and M&A Strategy - Organon is focused on a balanced approach to business development (BD) and mergers & acquisitions (M&A), targeting early-stage assets with blockbuster potential, mid-ready to launch assets, and commercialized assets [4][6] - The company has completed seven deals since its inception 18 months ago, emphasizing women's health as a core focus [4][6] Women's Health Segment - The company is expanding its focus on conditions uniquely affecting women and is also exploring biosimilar partnerships [9][10] - There is potential for acquisitions in areas disproportionately impacting women, such as migraine and osteoporosis [10] Financial Performance and EBITDA Margins - Organon raised its EBITDA margin guidance for 2022 based on favorable year-to-date performance, with a focus on revenue mix and manufacturing efficiency [12] - The company anticipates EBITDA margins to be around 31% for 2023, reflecting ongoing investments in R&D and promotional activities [18] Established Brands Business - Established brands represent about 60% of Organon's revenue, and the company is optimistic about stabilizing and potentially growing this segment [20][22] - The company has experienced growth in established brands due to favorable market conditions and strategic investments [22][23] Volume-Based Procurement in China - Organon has navigated six rounds of volume-based procurement (VBP) in China without a decline in business, thanks to a strong retail sales channel [25][26] - By the end of 2023, approximately 75% of the business will have gone through the VBP process, with expectations for low double-digit growth in the future [28] NEXPLANON and Women's Health Recovery - NEXPLANON has shown strength, but health visits for women remain below pre-pandemic levels, affecting recovery [30][31] - The company is focused on training healthcare providers to increase confidence in prescribing NEXPLANON [34][36] Biosimilars Market and HUMIRA - The biosimilar market is expected to see competition for HUMIRA starting in mid-2023, with a gradual ramp-up in market activity [40][41] - Organon has a partnership with Samsung for biosimilars, which is expected to provide a competitive edge due to product quality and patient experience [42][45] Future Outlook - Organon is positioning itself as a commercial partner of choice in the biosimilars market, with a focus on leveraging its expertise in the segment [44][45] - The company anticipates continued growth opportunities in the biosimilars market over the next five to seven years [45] Additional Insights - The company is committed to reinvesting in its business to drive long-term growth, particularly in R&D and promotional spending [17][18] - The focus on women's health and established brands is expected to provide a stable revenue base for future investments [20][22]