Organon & (US:OGN)2025-11-10 14:30Financial Data and Key Metrics Changes - Third quarter revenue was $1.6 billion, with adjusted EBITDA of $518 million, representing an adjusted EBITDA margin of 32.3% [13][30] - The company is lowering its full-year revenue guidance to $6.2 billion-$6.25 billion, reflecting a year-over-year nominal decline of 3.2%-2.4% [33] - Adjusted gross margin for the third quarter was 60.3%, down from 61.7% in the same quarter of 2024, primarily due to pricing pressure and unfavorable product mix [29][30] Business Line Data and Key Metrics Changes - Women's health franchise revenue declined 4% in the third quarter compared to the same period in 2024, with a 9% decline in Nexplanon sales [17] - Global Nexplanon sales were $223 million in the third quarter, with a 50% decline in the U.S. and a 7% growth internationally [17][18] - The fertility business was flat in the third quarter but up 13% year-to-date, with expectations of high single-digit growth for the full year [19] - Hadlima, a biosimilar, saw a 63% increase in sales year-to-date, contributing significantly to the biosimilars segment [21] Market Data and Key Metrics Changes - The U.S. market for Nexplanon faced challenges due to unfavorable policy changes impacting budget-constrained public segments [17][18] - The respiratory business is experiencing declines, particularly in Singulair and Dulera, due to competitive pressures and mandatory price reductions [24][25] Company Strategy and Development Direction - The company remains focused on deleveraging, driving cost savings, and achieving revenue growth [12][38] - A definitive agreement was made to divest the JADA system for $440 million, which will help in faster deleveraging [20] - The company is committed to enhancing operational performance and aligning resources to strategic priorities [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating current headwinds and emphasized the importance of operational excellence [10][38] - The company anticipates that the discontinuation of certain sales practices will have a significant impact on future revenue [15][19] - Management expects Nexplanon sales to be down mid to high single digits for the full year in the U.S. but anticipates international growth [18][19] Other Important Information - The independent internal investigation regarding improper sales practices has concluded, and remediation efforts are underway [9][48] - The company is not planning any additional divestitures at this time but will continue to evaluate its portfolio strategically [40] Q&A Session Summary Question: Are there opportunities for additional divestitures within the portfolio? - The company is constantly evaluating its assets but has no definitive plans for further divestitures at this time [40] Question: When should growth inflection for Vtama be expected? - Significant strides have been made to improve access, and 2026 is seen as a key year for evaluating growth trajectory [41] Question: Can you elaborate on the pressure on the respiratory business? - The respiratory business is expected to continue facing challenges due to competitive pressures and mandatory price reductions [42][43] Question: What are the expectations for Denosumab and its impact on future revenue? - The company is excited about Denosumab's launch and anticipates it will contribute positively to the biosimilars segment [54] Question: How is the CEO search progressing? - The search committee is actively working to find a permanent CEO, with no strategic changes anticipated in the interim [51]