Organon & (OGN)2025-02-13 17:47Financial Data and Key Metrics Changes - For the full year 2024, revenue was 1.96 billion, with a 30.6% adjusted EBITDA margin; excluding IPR&D, the margin was 31.8%, showing a half-point margin expansion over the previous year [8][47] - The company expects 2025 revenue to be in the range of 6.325 billion, reflecting a 1 billion in revenue in 2025 [11] - The fertility franchise declined by 2% ex-exchange in 2024, while the biosimilars franchise grew by 12% at constant currency [15][16] - Established brands grew by 2% ex-exchange, with contributions from Emgality and Vtama offsetting losses from Atozet [18] Market Data and Key Metrics Changes - Outside the U.S., the LAMERA region showed strong growth, particularly in Brazil and the U.K. [12] - In the U.S., Nexplanon's market leadership was supported by a pricing strategy and growth in transition demand [12] Company Strategy and Development Direction - The company aims to demonstrate resiliency in its base business, capture efficiencies, consistently deploy capital, and deliver on growth products and pipeline [22][25] - The focus is on profitable growth, with a commitment to regular dividends as the top capital allocation priority [24][52] - The company plans to launch a Denosumab biosimilar in collaboration with Shanghai Henlius in late 2025, pending FDA approval [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about Nexplanon's future growth, especially with the potential five-year indication submitted to the FDA [13] - The company anticipates a credible path to constant currency revenue growth in 2025 despite the loss of exclusivity of Atozet [57] - Management highlighted the importance of operational efficiency and cost savings, projecting 967 million before one-time costs in 2024, with expectations of around 900 million before one-time items, slightly lower than 2024 due to a lower starting point on adjusted EBITDA [75] Question: What are the commercial dynamics for the Denosumab biosimilar? - The Denosumab biosimilar is expected to launch in Q4 2025, with confidence in the buy and bill process for both Prolia and Xgeva [76] Question: Is there a risk of generic Nexplanon entering the market before 2030? - Management confirmed no paragraph four filing has been received for Nexplanon, indicating low risk for generics entering the market before 2030 [80][85] Question: What is the competitive positioning of Vtama in atopic dermatitis? - Vtama has shown strong NRX growth of 51% since its approval, with a best-in-class label that positions it favorably against competitors [92] Question: What are the long-term net leverage targets? - The company aims to reduce its net leverage ratio below four times by the end of 2026, with a target in the mid-three range thereafter [106]