Q1 2024 Organon & Co Earnings Call Transcript
Key Points
- Organon & Co (OGN) reported a strong start to 2024 with a 7% growth rate at constant currency, achieving $1.6 billion in revenue for the first quarter.
- The Women's Health franchise grew by 12%, driven by robust performance of NEXPLANON, which saw a 34% growth at constant currency.
- Biosimilars franchise experienced significant growth of 46%, with positive traction in key markets like the U.S., Brazil, and Canada.
- Adjusted EBITDA was $538 million, representing a 33.2% margin, and adjusted diluted EPS was $1.22, indicating strong profitability.
- Organon & Co (OGN) is on track to generate $1 billion of free cash flow before one-time costs in 2024, providing financial flexibility for dividends, debt reduction, and strategic business development.
- The Fertility franchise showed a slight decline, down about $2 million or 2% ex-FX, influenced by strategic exits and transitions in the U.S. market.
- Challenges in the APJ region, with a 7% decline ex-FX this quarter, primarily due to unfavorable national pricing revisions and competitive pressures.
- China's performance was down 5% ex-FX in the quarter, although there is an expectation of recovery throughout 2024.
- Established brands are expected to achieve flat performance on an ex-FX basis for the full year 2024, indicating limited growth potential in this segment.
- Organon & Co (OGN) faces ongoing pricing pressures across its portfolio, particularly in biosimilars and U.S. fertility, which could impact profitability and market competitiveness.
I'd like to welcome everyone to the Organon & Co., First Quarter 2024 Earnings Call and Webcast. (Operator Instructions) I would now like to turn the call over to Jennifer Halchak, Vice President of Investor Relations. You may begin.
Thank you, operator. Good morning, everyone. Thank you for joining Organon's First Quarter 2024 Earnings Call. With me today are Kevin Ali, Organon's Chief Executive Officer, who will cover strategy and operational highlights; and Matt Walsh, our Chief Financial Officer, who will review performance and guidance. Also joining us for the Q&A portion of this call is Organon's Head of R&D, Juan Camilo Arjona Ferreira. Today, we will be referencing a presentation that will be visible during this call for those of you on our webcast.
This presentation will also be available following this call on the Events and Presentations section of our Organon Investor Relations website at www.organon.com. Before we
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
