Q3 2024 Organon & Co Earnings Call Transcript
Key Points
- Organon & Co (OGN) reported a 5% revenue growth rate at constant currency for Q3 2024, with significant contributions from the women's health and biosimilars franchises.
- The company generated nearly $700 million of free cash flow year-to-date, on track to achieve approximately $1 billion for the full year 2024.
- Organon & Co (OGN) raised its revenue guidance midpoint by $50 million, reflecting strong year-to-date performance and improved foreign exchange outlook.
- The acquisition of Dermavant and its key asset, VTAMA, is expected to contribute significantly to Organon's dermatology portfolio, with potential sales of $150 million in 2025.
- Nexplanon, a leading product in the women's health franchise, is expected to achieve $1 billion in revenue next year, marking a major milestone for the company.
- The adjusted EBITDA margin for Q3 2024 was slightly lower at 29% compared to 29.4% in the same quarter last year, due to unfavorable product mix and pricing pressures.
- Organon & Co (OGN) faces pricing headwinds, particularly in Japan and Europe, impacting products like Atozet, NuvaRing, and Dulera.
- The acquisition of Dermavant is expected to be dilutive to EBITDA margin by about 50 basis points in 2025, with accretion expected in 2026.
- The fertility business is expected to be slightly down for the year due to inventory adjustments and onboarding challenges.
- Organon & Co (OGN) is experiencing competitive pressures in the US market for mature products, affecting pricing and channel mix.
Thank you for standing by. My name is Mandeep and I'll be your operator today. At this time, I'd like to welcome everyone to the Organon Q3 2024 earnings call and webcast. (Operator Instructions) I would now like to turn the call over to Jennifer Halchak, Vice President, Investor Relations. You may begin.
Thank you, operator. Good morning, everyone. Thank you for joining Organon's third-quarter 2024 earnings call. With me today are Kevin Ali, Organon's Chief Executive Officer; and Matt Walsh, our Chief Financial Officer, as well as Juan Camilo Arjona Ferreira, Organon's Head of R&D.
Today, we'll 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 begin, I would like to caution listeners
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