Organon Reports Second Quarter 2024 Results
Organon, an independent global healthcare company, has released its financial results for the second quarter ended June 30, 2024. The company reported second quarter 2024 revenue of $1.607 billion, which remained flat year-over-year on an as-reported basis, but showed a 2% increase at constant currency.
Diluted earnings per share for the second quarter of 2024 were $0.75, while non-GAAP adjusted diluted earnings per share stood at $1.12. Notably, both reported and non-GAAP adjusted diluted earnings per share included $15 million of expense, or $0.05 per share, for acquired in-process research and development (IPR&D) and milestones.
The company's net income for the second quarter of 2024 was $195 million, with adjusted EBITDA (non-GAAP) reaching $513 million.
Revenue Breakdown: Women's Health: $449 million, up 3% year-over-year Biosimilars: $164 million, up 22% year-over-year Established Brands: $963 million, down 3% year-over-year Other: $31 million, down 20% year-over-year
Performance in the women's health franchise was driven by a 13% growth in Nexplanon® and strong sales of MarvelonTM and MercilonTM. However, sales of Nuvaring® declined 35% due to generic competition, while the fertility portfolio was down 8% primarily due to a difficult comparison to a stronger prior period for the China fertility business.
Biosimilars revenue grew 22% compared to the same period in 2023, driven by the uptake of Hadlima® and Ontruzant®. Established Brands revenue declined 3% on an as-reported basis, with contributions from the recent licensing of Emgality® and RayvowTM partially offsetting the impacts of certain market actions and pricing revisions.
Profitability: Gross profit: $939 million, down 3% year-over-year Non-GAAP adjusted gross profit: $996 million, down 2% year-over-year Net income: $195 million, down 19% year-over-year Non-GAAP adjusted net income: $289 million, down 14% year-over-year Diluted earnings per share (EPS): $0.75, down 21% year-over-year Non-GAAP adjusted diluted EPS: $1.12, down 15% year-over-year * Adjusted EBITDA (non-GAAP): $513 million, down 3% year-over-year
Full Year 2024 Guidance: Narrowed revenue guidance to $6.250 billion to $6.450 billion Affirmed adjusted EBITDA margin (non-GAAP) guidance at 31.0%-33.0%
Capital Allocation: The board of directors declared a quarterly dividend of $0.28 per share of common stock, payable on September 12, 2024.
As of June 30, 2024, the company had cash and cash equivalents of $704 million and debt of $8.7 billion.
The company's full year 2024 financial guidance was presented on a non-GAAP basis, except for revenue. The guidance included adjusted gross margin, SG&A, R&D, adjusted EBITDA margin, interest, depreciation, effective non-GAAP tax rate, and fully diluted weighted average shares outstanding.
Organon is an independent global healthcare company with a diverse portfolio offering more than 60 medicines and products in women's health, biosimilars, and a large franchise of established medicines across various therapeutic areas. The company has approximately 10,000 employees and is headquartered in Jersey City, New Jersey. The market has reacted to these announcements by moving the company's shares -3.4% to a price of $20.19. For the full picture, make sure to review Organon &'s 8-K report.
