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Jun 30, 2023

Organon Q2 2023 Earnings Report

Organon's performance remained solid, marked by volume growth across all regions and franchises.

Key Takeaways

Organon reported a 1% increase in total revenue to $1,608 million for the second quarter of 2023, or a 4% increase excluding the impact of foreign currency. Women's Health and Biosimilars franchises grew 10% and 15% ex-FX, respectively, while Established Brands remained stable. Net income was $242 million, or $0.95 per diluted share, compared to $234 million, or $0.92 per diluted share, in the second quarter of 2022.

Total revenue reached $1,608 million, a 1% increase as-reported and a 4% increase ex-FX.

Women's Health revenue increased by 8% as-reported and 10% ex-FX, driven by Nexplanon and fertility portfolio growth.

Biosimilars revenue increased by 14% as-reported and 15% ex-FX, primarily driven by Renflexis.

Established Brands revenue decreased 2% as-reported but was flat ex-FX.

Total Revenue
$1.61B
Previous year: $1.59B
+1.5%
EPS
$1.31
Previous year: $1.25
+4.8%
Gross Margin
60.2%
Previous year: 62.9%
-4.3%
Adjusted Gross Margin
62.9%
Previous year: 66.1%
-4.8%
Adjusted EBITDA Margin
33%
Previous year: 32.3%
+2.2%
Gross Profit
$968M
Previous year: $997M
-2.9%
Cash and Equivalents
$326M
Previous year: $545M
-40.2%
Free Cash Flow
-$44M
Previous year: $106M
-141.5%
Total Assets
$11B
Previous year: $10.6B
+3.4%

Organon

Organon

Forward Guidance

The company is updating its full year 2023 guidance ranges previously provided on May 4, 2023. The range for full year 2023 revenue is narrowed to $6.25 billion to $6.45 billion, which primarily reflects current foreign currency exchange rates. The range for full year Adjusted EBITDA margin is now 31.5% to 33.0% to incorporate the company's current visibility of IPR&D and milestone expenses expected to be incurred in 2023.