Organon & Co. · NYSE:OGN
Organon & — Q1 2025 Earnings Presentation
22 slides from Organon &'s earnings presentation, May 1, 2025
Slide 1: Organon First Quarter 2025 Earnings
Organon First Quarter 2025 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: First Quarter 2025 highlights
First Quarter 2025 highlights • Revenue of $1.5 billion, down 4% ex- FX, consistent with phasing of LOE of Atozet • Diluted EPS of $0.33; Adj. Diluted EPS of $1.02 • Adj. EBITDA of $484 million, representing 32.0% Adjusted EBITDA margin • Full year 2025 financial guidance affirmed See Slides 17-19 o
Slide 5: U.S. represents ~1/4 of total Organon revenue
U.S. represents ~1/4 of total Organon revenue Other (1), 2% China, 13% US, 27% LAMERA, ~75% of 16% FY sales generated ex-US (2) APJ, 17% Europe and Canada, 25% Totals may not foot due to rounding, and percentages are computed using unrounded amounts. (1) “Other” includes manufacturing sales to third
Slide 6: Women's Health
Women’s Health • Franchise growth of 12% • Nexplanon on track to achieve >$1 billion of revenue in 2025 Act Ex-FX Revenues $ mil Q1-25 Q1-24 VPY VPY Nexplanon ® (contraception) 248 220 13% 14% Marvelon™/ Mercilon™ (contraception) 39 33 19% 21% NuvaRing ® (contraception) 22 38 (43)% (41)% Women’s Fol
Slide 7: Biosimilars
Biosimilars • Renflexis and Ontruzant at mature phase of lifecycle • Hadlima, Tofidence partial offsets in 2025 • Potential U.S. denosumab launch late 2025 Act Ex-FX Revenues $ mil Q1-25 Q1-24 VPY VPY Renflexis ® 57 69 (18)% (17)% Hadlima ® 47 30 55% 57% Biosimilars Ontruzant ® 18 39 (54)% (54)% Bre
Slide 8: Established Brands
Established Brands • Emgality, Vtama offsetting factors to Atozet LOE in 2025 • Vtama Q1 sales of $24M; on track to deliver $150M of revenue for full year Act Ex-FX Revenues $ mil Q1-25 Q1-24 VPY VPY Cardiovascular 274 365 (25)% (22)% Respiratory 236 277 (15)% (13)% Established Non-Opioid Pain, Bone
Slide 9: Atozet LOE headwind will persist through Q3 2025
Atozet LOE headwind will persist through Q3 2025 (7%) as reported $ mil (4%) at constant currency $1,622 ~0 ~45 ~(60) ~(10) $1,513 ~(40) ~ (45) ~(280) bps headwind (1) (2) (3) Q1 2024 LOE VBP Price Volume Supply/Other FX Q1 2025 (1) LOE = Loss of Exclusivity (2) VBP = Volume Based Procurement (3) “O
Slide 10: Strong Q1 margin driven by timing of op-ex spend
Strong Q1 margin driven by timing of op-ex spend Actual All numbers presented on non-GAAP basis except revenue and IPR&D (1) Q1-25 Q1-24 VPY Revenue 1,513 1,622 (7)% Cost of sales 579 615 (6)% Adjusted Gross profit 934 1,007 (7)% Selling, general and administrative 395 373 6% R&D 88 106 (17)% Acquir
Slide 11: Q1 FCF seasonally light, but improved over 2024
Q1 FCF seasonally light, but improved over 2024 Year-over-year improvement (USD millions) Q1 2025 Q1 2024 driven by: Adjusted EBITDA $484 $538 • Lower interest rates, Less: Net cash interest expense (41) (65) timing of interest and cash Less: Cash taxes (25) (50) tax payments Less: Change in net wor
Slide 12: Net leverage ratio ~4.3x at March 31, 2025
Net leverage ratio ~4.3x at March 31, 2025 ~ 128 $8,409 ~78 $8,205 ~ (2) Dec 2024 Principal Pay Down Unfavorable FX Decrease in cash Mar 2025 Net Debt balance Net Debt * The definition of net debt is in the company's credit agreement and excludes unamortized fees, but includes capitalized lease obli
Slide 13: Growth in Nexplanon, Emgality and Vtama offsets to LOE, pricing
Growth in Nexplanon, Emgality and Vtama offsets to LOE, pricing (4.3%) to (1.2%) as reported $ mil (1.2%) to +1.9% at constant currency ~ 380-500 $6,403 ~(45)-(55) $6,125-6,325 ~ (160)-(180) ~(20)-(40) ~ (200) ~(155)-(185) Potential upside to estimate if current rates hold (1) (2) (3) FY 2024 LOE Ch
Slide 14: Full Year 2025 Guidance
Full Year 2025 Guidance Provided on a non-GAAP basis, except Prior Guidance as of Current Guidance revenue February 13, 2025 Revenue $6.125B-$6.325B Unchanged Unchanged, but with potential FX translation headwind ~$200M upside at current rates Adjusted gross margin 60.0%-61.0% Unchanged SG&A Mid 20%
Slide 15: Q&A
Q&A “i ORGANON
Slide 16: Appendix
Appendix O “i ORGANON™
Slide 17: Reconciliation of GAAP Reported to Non-GAAP Adjusted Metrics
Reconciliation of GAAP Reported to Non-GAAP Adjusted Metrics ($ in millions) Q1 2025 Q1 2024 GAAP Gross Profit $ 841 $ 957 Adjusted for: Spin-related costs (1) — 3 Manufacturing network costs (2) 29 10 Stock-based compensation 4 4 Amortization 50 33 Acquisition-related costs (3) 9 — Other 1 — Adjust
Slide 18: Reconciliation of GAAP Reported to Non-GAAP Adjusted Metrics
Reconciliation of GAAP Reported to Non-GAAP Adjusted Metrics ($ in millions, except per share amounts) Q1 2025 Q1 2024 GAAP Research and development expenses $ 96 $ 112 Adjusted for: Spin-related costs (1) — (2) Manufacturing network costs (2) (3) — Stock-based compensation (4) (4) Other (1) — Adjus
Slide 19: GAAP Net Income to Adjusted EBITDA
GAAP Net Income to Adjusted EBITDA Unaudited, $ in millions Q1 2025 Q1 2024 GAAP Reported Net Income $ 87 $ 201 Depreciation (1) 32 30 Amortization 50 33 Interest expense 124 131 Income tax expense 14 35 EBITDA (Non-GAAP) $ 307 $ 430 Restructuring and related charges 92 23 Spin-related costs (2) — 4
Slide 20: Geographic revenue performance
Geographic revenue performance Actual Ex-FX $ mil Q1-25 Q1-24 VPY VPY United States 412 371 11% 11% Europe and Canada 376 450 (16)% (12)% Asia Pacific and Japan 251 287 (12)% (9)% Latin America, Middle East, Russia and Africa 240 274 (12)% (8)% China 204 206 (1)% —% Other (1) 30 34 (17)% (13)% Total
Slide 21: Franchise performance
Franchise performance Q1 Q1 Actual Ex-FX $ millions 2025 2024 VPY VPY Women’s Health 463 422 10% 12% Biosimilars 141 170 (17)% (15)% Est. Brands 887 1,001 (11)% (8)% Other (1) 22 29 (23)% (19)% Total Revenues 1,513 1,622 (7)% (4)% Totals may not foot due to rounding and percentages are computed usin
Slide 22: Broad and diverse portfolio
Broad and diverse portfolio Women’s Health Biosimilars Established Brands TM Number of products 14 6 56 22 Emgality is a trademark of Eli Lilly and Company (used under license).