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Jun 30, 2022

Organon Q2 2022 Earnings Report

Organon delivered constant currency growth across all reported geographies and in all three franchises.

Key Takeaways

Organon reported a decrease of 1% in total net revenues as-reported, but an increase of 5% excluding the impact of foreign currency compared to Q2 2021. The company saw growth in Biosimilars revenue, and its Established Brands franchise performed well. Organon is updating its full year 2022 guidance ranges and now expects revenue between $6.1 billion and $6.3 billion.

Total net revenues were $1,585 million, a decrease of 1% as-reported, but an increase of 5% ex-FX, compared with Q2 2021.

Women’s Health declined 2% as-reported, but increased 1% ex-FX compared to Q2 2021.

Biosimilars revenue grew 39% as-reported and 42% ex-FX compared with Q2 2021.

Established Brands decreased 2% as-reported and increased 4% ex-FX compared with Q2 2021.

Total Revenue
$1.59B
Previous year: $1.6B
-0.6%
EPS
$1.25
Previous year: $1.72
-27.3%
Gross Margin
62.9%
Previous year: 63.4%
-0.8%
Adjusted Gross Margin
66.1%
Previous year: 65.6%
+0.8%
Adjusted EBITDA Margin
32.3%
Previous year: 39.3%
-17.8%
Gross Profit
$997M
Previous year: $1.01B
-1.5%
Cash and Equivalents
$545M
Previous year: $730M
-25.3%
Free Cash Flow
$106M
Total Assets
$10.6B
Previous year: $10.9B
-2.7%

Organon

Organon

Forward Guidance

Organon is updating its full year 2022 guidance ranges previously provided on May 5, 2022. The range for full year 2022 revenue is narrowed to $6.1 billion to $6.3 billion, which reflects persisting foreign exchange headwinds. The range for full year Adjusted EBITDA margin is now 32% to 34% to incorporate approximately $110 million of IPR&D and milestone expenses from business development through August 4, 2022.