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Sep 30, 2023
Organon Q3 2023 Earnings Report
Organon's revenue decreased slightly, with mixed performance across segments, while profitability declined due to various factors.
Key Takeaways
Organon reported a slight decrease in revenue for Q3 2023, with Women's Health declining but Biosimilars and Established Brands showing growth. Profitability margins decreased due to foreign exchange, inflation, and product mix. The company narrowed and lowered its full-year revenue guidance.
Total revenue decreased by 1% compared to Q3 2022.
Women's Health revenue declined, impacted by generic competition for NuvaRing and unfavorable discount rates for fertility products and Nexplanon.
Biosimilars revenue increased by 10%, driven by Renflexis and Ontruzant.
Established Brands revenue increased by 2%, driven by Atozet, Nasonex, and Dulera.
Organon
Organon
Organon Revenue by Segment
Organon Revenue by Geographic Location
Revenue by Segment
Women's Health Revenue
CapyFin.comBiosimilars Revenue
CapyFin.comEstablished Brands Revenue
CapyFin.comOther Revenue
CapyFin.comRevenue by Geographic Location
Europe and Canada Revenue
CapyFin.comUnited States Revenue
CapyFin.comAsia Pacific and Japan Revenue
CapyFin.comChina Revenue
CapyFin.comLatin America, Middle East, Russia, and Africa Revenue
CapyFin.com Forward Guidance
Organon is updating its full year 2023 guidance ranges. The range for full year 2023 revenue is narrowed and lowered to $6.15 billion to $6.25 billion. The range for full year Adjusted EBITDA margin is now 30.5% to 31.5%.
Positive Outlook
- Established Brands franchise to achieve flat to slightly better revenue growth on a constant currency basis for the full year 2023.
- Focus on reducing leverage as we move into 2024.
- Continue to add products that could enhance growth profile.
- Existing products produce strong cash flows
- Pursuing opportunities to collaborate with biopharmaceutical innovators
Challenges Ahead
- Revenue guidance narrowed and lowered to $6.15B - $6.25B due to foreign currency exchange rates.
- Changes to the go-to-market model for Nexplanon.
- Slower uptake of Hadlima.
- Macroeconomic factors in China.
- Adjusted EBITDA margin now 30.5% to 31.5% to reflect a lower gross margin stemming from the impacts of foreign exchange on revenue.
Revenue & Expenses
Visualization of income flow from segment revenue to net income