Organon & Co. · NYSE:OGN
Organon & — Q4 2024 Earnings Presentation
26 slides from Organon &'s earnings presentation, Feb 13, 2025
Slide 1: Fourth Quarter and Full Year 2024 Earnings
Organon Fourth Quarter and Full Year 2024 Earnings
Slide 2: Disclaimer statement
Disclaimer statement Cautionary Note Regarding Forward-Looking Statements Except for historical information, this presentation includes “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including, but not limit
Slide 3: Disclaimer statement, cont.
Disclaimer statement, cont. Cautionary Note Regarding Non-GAAP Financial Measures This presentation contains “non-GAAP financial measures,” which are financial measures that either exclude or include amounts that are correspondingly not excluded or included in the most directly comparable measures c
Slide 4: Full year 2024 highlights
Full year 2024 highlights • Revenue of $6.4 billion, up 3% ex-FX • All three franchises grew at constant currency • Diluted EPS of $3.33; Adj. Diluted EPS of $4.11 • Adj. EBITDA of $1.96 billion, inclusive of $81 million of IPR&D and milestones, representing 30.6% Adjusted EBITDA margin See Slides 1
Slide 5: Women's Health
Women’s Health • Franchise growth of 5% • Record year in Nexplanon, on track to eclipse $1 billion of revenue in 2025 Act Ex-FX FY FY Act Ex-FX Revenues $ mil Q4-24 Q4-23 VPY VPY 2024 2023 VPY VPY Nexplanon ® (contraception) 258 231 12% 12% 963 830 16% 17% NuvaRing ® (contraception) 24 39 (38)% (37)
Slide 6: Biosimilars
Biosimilars • Third consecutive year of double-digit revenue growth • Hadlima achieves over $100 million of sales in U.S. • Renflexis and Ontruzant at mature phase of lifecycle Act Ex-FX FY FY Act Ex-FX Revenues $ mil Q4-24 Q4-23 VPY VPY 2024 2023 VPY VPY Renflexis ® 65 77 (16)% (16)% 274 278 (1)% (
Slide 7: Established Brands
Established Brands • Emgality, Vtama, recovery in injectable steroids, more than offset Atozet, LOE and unfavorable pricing dynamic in Japan. Act Ex-FX FY FY Act Ex-FX Revenues $ mil Q4-24 Q4-23 VPY VPY 2024 2023 VPY VPY Cardiovascular 283 322 (12)% (12)% 1,323 1,460 (9)% (8)% Respiratory 257 274 (6
Slide 8: Strategic Roadmap
Strategic Roadmap Accelerate Growth & Profitability 2026 - beyond Preparing for Lean Growth • Expand core EBITDA, Gross margin Establish 2024 - 2026 • Accelerate delivery of Strategic Growth Organon Drivers (e.g. Nexplanon, Vtama, Emgality) • Maintain growth CAGR and hold 2021 - 2024 EBITDA margin f
Slide 9: Strategic Pillars for 2025
Strategic Pillars for 2025 Demonstrate Enhance value Consistent Deliver promise of resilience in base capture from capital allocation growth products business efficiency and pipeline Portfolio managed Offset incremental Continue capital allocation Nexplanon blockbuster entrepreneurially since Dermav
Slide 10: Key milestones in our R&D pipeline
Key milestones in our R&D pipeline Women's Health Clinical OG-6219 OG-8276A (Mercilon Japan) Clinical Ph2b topline Anticipated Ph3 development results study ongoing1 completion Biosimilars 4Q24 1H25 2H25 Anticipated approval timelines subject to final health authority Regulatory review/approval HLX-
Slide 11: Continued strength in volume growth
Continued strength in volume growth +2% reported +3% at constant currency $ mil ~ 415 ~ ~ ~ ~ ~ ~(130) bps headwind (1) (2) (3) (1) LOE = Loss of Exclusivity (2) VBP = Volume Based Procurement (3) Other includes manufacturing sales to third parties. 11
Slide 12: Containment of operating costs, inclusive of IPR&D
Containment of operating costs, inclusive of IPR&D All numbers presented on non-GAAP basis Actual Actual Q4-24 Q4-23 FY 2024 FY 2023 except revenue and IPR&D (1) VPY VPY Revenue 1,592 1,598 —% 6,403 6,263 2% Cost of sales 627 634 (1)% 2,459 2,333 5% Adjusted Gross profit 965 964 —% 3,944 3,930 —% Se
Slide 13: Delivered on ~$1B of free cash flow before one-time costs for full year 2024
Delivered on ~$1B of free cash flow before one-time costs for full year 2024 Full year Full year • Cash taxes normalized (USD millions) compared with unusually 2024 2023 low 2023 Adjusted EBITDA $1,958 $1,944 Less: Net cash interest expense (486) (496) • Active net working capital Less: Cash taxes (
Slide 14: Net leverage ratio ~4.2x at December 31, 2024
Net leverage ratio ~4.2x at December 31, 2024 $ mil Dec 2021 Dec 2022 Dec 2023 Dec 2024 Cash and cash $737 $706 $693 $675 equivalents Gross Debt (1) 9,134 8,913 8,760 8,889 Net Debt (1) 8,397 8,207 8,067 8,214 * The definition of net debt is in the company's credit agreement and excludes unamortized
Slide 15: Growth in Nexplanon, Emgality and Vtama expected to offset LOE, pricing
Growth in Nexplanon, Emgality and Vtama expected to offset LOE, pricing (4.3%) to (1.2%) reported $ mil (1.2%) to +1.9% constant currency ~ $6,125 - $6,325 ~ ~ ~ ~ ~ ~(300) bps headwind to growth in 2025 (1) (2) (3) (1) LOE = Loss of Exclusivity (2) VBP = Value Based Procurement (3) Other includes m
Slide 16: Full Year 2025 Guidance
Full Year 2025 Guidance Provided on a non-GAAP basis, except 2024 Full Year Actuals FY 2025 Guidance revenue Revenue $6.403 B $6.125B-$6.325B FX translation headwind ~$80M ~$200M Adjusted gross margin 61.6% 60.0%-61.0% SG&A $1.57B/25% Mid-20% range R&D $440M/6.9% Upper single-digit IPR&D* $81M - Adj
Slide 17: Q&A
Q&A “iis ORGANON”
Slide 18: Appendix
Appendix O “i ORGANON’
Slide 19: Reconciliation of GAAP Reported to Non-GAAP Adjusted Metrics
Reconciliation of GAAP Reported to Non-GAAP Adjusted Metrics ($ in millions) Q4 2024 Q4 2023 FY 2024 FY 2023 GAAP Gross Profit $ 896 $ 915 $ 3,715 $ 3,748 Adjusted for: Spin-related costs (1) — 17 6 47 Manufacturing network costs (2) 15 — 54 — Stock-based compensation 4 4 17 17 Amortization 43 28 14
Slide 20: Reconciliation of GAAP Reported to Non-GAAP Adjusted Metrics
Reconciliation of GAAP Reported to Non-GAAP Adjusted Metrics ($ in millions, except per share amounts) Q4 2024 Q4 2023 FY 2024 FY 2023 GAAP Research and development expenses $ 130 $ 134 $ 469 $ 528 Adjusted for: Spin-related costs (1) (6) (2) (11) (12) Stock-based compensation (5) (5) (18) (16) Adju
Slide 21: GAAP Net Income to Adjusted EBITDA
GAAP Net Income to Adjusted EBITDA Unaudited, $ in millions Q4 2024 Q4 2023 FY 2024 FY 2023 Net income $ 109 $ 546 $ 864 $ 1,023 Depreciation (1) 33 30 126 118 Amortization 43 28 145 116 Interest expense 132 129 520 527 Income tax expense (benefit) 20 (442) (57) (350) EBITDA (Non-GAAP) $ 337 $ 291 $
Slide 22: Volume growth offsets price erosion and LOE impacts
Volume growth offsets price erosion and LOE impacts Flat as reported $ mil and at constant currency ~ ~ ~ ~ ~ ~ (1) (2) (3) (1) LOE = Loss of Exclusivity (2) VBP = Volume Based Procurement (3) Other includes manufacturing sales to third parties 22
Slide 23: Franchise performance
Franchise performance Q4 Q4 Actual Ex-FX Actual Ex-FX $ mil FY 2024 FY 2023 2024 2023 VPY VPY VPY VPY Women’s 466 465 —% —% 1,777 1,702 4% 5% Health Biosimilars 163 199 (18)% (18)% 662 593 12% 12% Est. Brands 935 915 2% 2% 3,849 3,847 —% 2% Other (1) 28 19 53% 52% 115 121 (6)% (6)% Total 1,592 1,598
Slide 24: Strength in EUCAN, US, LAMERA offsetting mandatory pricing revisions in Japan
Strength in EUCAN, US, LAMERA offsetting mandatory pricing revisions in Japan Actual Ex-FX FY FY Actual Ex-FX $ mil Q4-24 Q4-23 VPY VPY 2024 2023 VPY VPY Europe and 420 414 1% —% 1,763 1,673 5% 5% Canada United States 416 411 1% 1% 1,572 1,478 6% 6% Asia Pacific and ~75% of 244 261 (6)% (7)% 1,050 1
Slide 25: Approved Vtama label vs non-steroidal treatments
Approved Vtama label vs non-steroidal treatments AhR PDE 4 JAK IL-4 Vtama® Eucrisa* Zoryve* Opzelura* Dupixent* Women's Health 8 Weeks 4 Weeks 4 Weeks 8 Weeks 16 Weeks Women's Health Twice Daily Once Every Dosing regimen Once Daily Twice Daily Once Daily Topical cream 2 Weeks - Once Topical Cream To
Slide 26: Broad and diverse portfolio
Broad and diverse portfolio Women’s Health Biosimilars Established Brands TM Number of products 14 5 56 26 Emgality is a trademark of Eli Lilly and Company (used under license).