Organon Reports Better Than Expected Q3 Earnings

Organon & Co's OGN Q3 sales reached $1.54 billion, a decrease of 4% Y/Y (up 3% on constant currency), beating the consensus of $1.52 billion.
Women's Health increased 19% and 23% ex-FX. Nexplanon (etonogestrel implant) grew 34% ex-FX, primarily driven by favorable pricing, demand uptake in the U.S., and volume growth outside the U.S.
Continued demand for the company's fertility offerings also contributed to growth in the quarter.
Biosimilars revenue declined 7% (4% ex-FX) primarily driven by the timing of a tender for Ontruzant (trastuzumab-dttb) in Brazil in 2021, as well as competitive pressures in Europe.
The adjusted gross margin improved to 67.1% from 64.9%. The company reported an adjusted EBITDA of $546 million, down 11%.
The adjusted EPS declined 16% to $1.32, better than the consensus of $1.10.
Guidance: Organon narrowed FY22 sales guidance to $6.1-$6.2 billion from $6.1-$6.3 billion compared to the consensus of $6.18 billion.
The company narrowed and raised the adjusted margin EBITDA to 33.5%-34.5% from 32%-34%.
Price Action: OGN shares are up 4.01% at $26.97 on the last check Thursday.

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