Organon & Co. · NYSE:OGN
Organon & — Q3 2021 Earnings Presentation
23 slides from Organon &'s earnings presentation, Nov 12, 2021
Slide 1: Organon Q3 2021 Earnings
Organon Q3 2021 Earnings “i ORGANON”
Slide 2: Disclaimer statement
Disclaimer statement This text should be viewed in conjunction with Organon’s Q3 2021 earnings call 2 Safe Harbor for Forward - Looking Statements Except for the historical information herein, this presentation of Organon & Co. (the “company”) includes “forward - looking state ments” within the mean
Slide 3: Disclaimer statement, cont. Non-GAAP Information
Disclaimer statement, cont. Non - GAAP Information This presentation includes information based on financial measures that are not recognized under generally accepted accountin g p rinciples in the United States (“GAAP”), such as Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted Earnings pe
Slide 4: Third quarter 2021 highlights
Third quarter 2021 highlights • Organon's first independent full quarter • July 2021, Organon and ObsEva enter licensing agreement on investigational ebopiprant • Declare d inaugural dividend Q3 2021 • $1, 600 million Revenue • $6 36 million Adjusted EBITDA (1) • $1. 67 Adjusted EPS (1) from continu
Slide 5: Business development underway
Business development underway Proposed acquisition of Forendo November 2021 Endometriosis Affects up to 170 million patients , or up to 10% of women of reproductive age Licensing of investigational ebopiprant July 2021 Pre - term labor 15 million babies (11.1% of all live births) born pre - term eve
Slide 6: Broad and diverse portfolio
Number of products 11 5 49 Women’s Health Biosimilars Established Brands Broad and diverse portfolio 6 ® Œ
Slide 7: Geographic revenue performance
Geographic revenue performance $ mil Q3 - 21 Q3 - 20 Actual VPY Ex FX VPY Europe and Canada 410 426 (4)% (7)% United States 346 371 (7)% (7)% Asia Pacific and Japan 287 354 (19)% (19)% China 252 225 12% 4% Latin America, Middle East, Russia and Africa 238 228 4% 3% Other (1) 67 9 NM NM Revenue 1,600
Slide 8: Q3 Revenue bridge
~70 ~60 ~20 ~20 ~75 ~50 ~35 LOE Q3 2020 China VBP COVID - 19 Volume FX Q3 2021 1,613 1,600 - 1% reported - 3% ex - FX $ mil Other* Price (*) Other Includes manufacturing sales to Merck and third parties Q3 Revenue bridge 8
Slide 9: Women's Health
Women’s Health Women’s Health Revenues $ mil Q3 - 21 Q3 - 20 Act VPY Ex FX VPY 2021 YTD 2020 YTD Act VPY Ex FX VPY N explanon ® 175 189 (7)% (8)% 543 515 5% 4% F ollistim ® 61 50 21% 18% 178 135 31% 26% N uvaRing ® 49 58 (16)% (17)% 147 184 (20)% (22)% Ganirelix Acetate 25 25 (2)% (5)% 85 55 53% 46%
Slide 10: Biosimilars
Biosimilars Biosimilars Revenues $ mil Q3 - 21 Q3 - 20 Act VPY Ex FX VPY 2021 YTD 2020 YTD Act VPY Ex FX VPY Renflexis ® 54 38 44% 43% 136 96 41% 39% Ontruzant ® 56 37 48% 47% 101 78 29% 24% Brenzys Œ 14 23 (40)% (42)% 35 52 (33)% (38)% Other 16 1 NM NM 34 1 NM NM Biosimilars 140 99 4 1 % 39% 306 22
Slide 11: Established Brands
Established Brands Revenue up/down Established brands Revenues $ mil Q3 - 21 Q3 - 20 Act VPY Ex FX VPY 2021 YTD 2020 YTD Act VPY Ex FX VPY Cardiovascular 397 439 (9)% (11)% 1,217 1,437 (15)% (20)% Respiratory 250 239 5% 3% 737 878 (16)% (19)% Non - Opioid P ain Bone & Derm. 224 221 1% (2)% 621 634 (
Slide 12: Q3 and YTD 2021
Q3 and YTD 2021 $ mil (except EPS) Q3 - 21 Q3 - 20 Actual VPY 2021 YTD 2020 YTD Actual VPY Revenue 1,600 1,613 (1)% 4,701 4,919 (4)% Cost of Goods Sold 609 535 14% 1,783 1,533 16% Gross profit 991 1,078 (8)% 2,918 3,386 (14)% Gross margin 61.9% 66.8% 62.1% 68.8% Non - GAAP Adjusted Gross profit (1)
Slide 13: Third Quarter Balance Sheet/Cash Flow and Metrics
3 rd Quarter Balance Sheet/Cash Flow and Metrics September 30, 2021 Cash and Cash Equivalents $1,008 Gross Debt 9,298 Net Debt 8,290 Q2 YTD Q3 YTD Net Cash Provided by Operating Activities 1,745 2,113 Capital Expenditures 97 133 Free Cash Flow 1,648 1,980 13 $ mil Between June 30, 2021, and Sept 30,
Slide 14: Revenue drivers consistent with prior guidance
Revenue drivers consistent with prior guidance (0.3) – (0.4) (0.2) (0.1) – (0.2) 0.0 +0.1 - +0.2 +0.2 FX impact (2) $6.6 (1) 2020 Actuals LOE COVID - 19 Price Performance 2021 E $6.2 – $6.3 (1) China VBP (1) Reflects full - year pro forma revenue for both 2020 & 2021 including other revenues, mainly
Slide 15: Affirming full year 2021 proforma guidance
Affirming full year 2021 proforma guidance Non - GAAP, proforma as if OGN was standalone Jan 1, 2021 Prior Guidance Revised Guidance November 11, 2021 Revenue $6.1B - $6.4B $6.2B - $6.3B Gross Margin (*) Low to mid - 60% range No change SG&A as % of revenue (*) Mid - 20% range No change R&D as % of
Slide 16: Q&A
Q&A -i: ORG
Slide 17: Appendix
Appendix “i= ORGAN
Slide 18: Third quarter and YTD revenue
Third quarter and YTD revenue $ mil Q3 - 21 Q3 - 20 Actual VPY Ex FX VPY 2021 YTD 2020 YTD Actual VPY Ex FX VPY Women’s Health 381 424 (10)% (11)% 1,197 1,164 3% 1% Biosimilars 140 99 4 1 % 39% 306 227 35% 30% Est. Brands 1,027 1,088 (6)% (8)% 3,030 3,478 (13)% (17)% Other (1) 52 2 NM NM 168 50 NM N
Slide 19: Gross margin reconciliation
Gross margin reconciliation 19 $ mil Q3 - 21 Q3 - 20 2021 YTD 2020 YTD Revenue 1,600 1,613 4,701 4,919 Cost of Goods Sold 609 535 1,783 1,533 Gross Profit 991 1,078 2,918 3,386 Gross Margin 61.9% 66.8% 62.1% 68.8% Amortization 27 23 69 65 One - time costs (1) 17 — 27 — Stock - based compensation 3 5
Slide 20: Net Income to Adjusted EBITDA reconciliation
Net Income to Adjusted EBITDA reconciliation $ mil Q3 - 21 Q3 - 20 Net income from continuing operations before income tax 389 681 Depreciation 25 17 Amortization (1) 27 23 Interest expense 98 — EBITDA 539 721 Restructuring costs 1 12 One - time costs (2) 56 7 Acquired in - process research and deve
Slide 21: Net Income to Adjusted EBITDA reconciliation (YTD)
Net Income to Adjusted EBITDA reconciliation $ mil 2021 YTD 2020 YTD Net income from continuing operations before income tax 1,293 2,227 Depreciation 64 42 Amortization (1) 69 65 Interest expense 160 — EBITDA 1,586 2,334 Restructuring costs 3 43 One - time costs (2) 171 30 Acquired in - process rese
Slide 22: Net Income to Adjusted Net Income reconciliation
Net Income to Adjusted Net Income reconciliation $ mil (except EPS) Q3 - 21 Q3 - 20 Net income from continuing operations before income tax 389 681 Amortization (1) 27 23 Restructuring costs 1 12 One - time costs (2) 56 7 Acquired in - process research and development (3) 25 — Stock - based compensa
Slide 23: Net Income to Adjusted Net Income reconciliation (YTD)
Net Income to Adjusted Net Income reconciliation $ mil (except EPS) 2021 YTD 2020 YTD Net income from continuing operations before income tax 1,293 2,227 Amortization (1) 69 65 Restructuring costs 3 43 One - time costs (2) 171 30 Acquired in - process research and development (3) 25 — Stock - based