Overview

* Organon Q3 revenue of $1.602 bln beats analyst expectations, up 1% yr/yr

* Adjusted EPS for Q3 beats consensus at $1.01

* Company lowers full-year 2025 revenue and adjusted EBITDA margin guidance

Outlook

* Organon lowers full-year 2025 revenue guidance to $6.200 bln - $6.250 bln

* Company revises full-year 2025 adjusted EBITDA margin guidance to ~31.0%

Result Drivers

* BIOSIMILARS GROWTH - Biosimilars revenue increased 19% driven by Hadlima and favorable timing of an international tender for Ontruzant

* WOMEN'S HEALTH DECLINE - Women's Health revenue declined 3% due to lower demand for Nexplanon in the U.S., offset partially by growth in other products

* ESTABLISHED BRANDS CHALLENGES - Established Brands revenue faced declines due to loss of exclusivity and pricing pressures in the respiratory portfolio

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $1.60 $1.57

Revenue bln bln (5

Analysts

)

Q3 Beat $1.01 $0.94 (6

Adjusted Analysts

EPS )

Q3 EPS $0.61

Q3 Beat $263 mln $245.27

Adjusted mln (5

Net Analysts

Income )

Q3 Net $160 mln

Income

Q3 Beat $518 mln $472 mln

Adjusted (3

EBITDA Analysts

)

Q3 Gross 53.50%

Margin

Q3 32.30%

Adjusted

EBITDA

Margin

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and 4 "sell" or "strong sell"

* The average consensus recommendation for the pharmaceuticals peer group is "buy."

* Wall Street's median 12-month price target for Organon & Co ( OGN ) is $10.50, about 35.4% above its November 7 closing price of $6.78

* The stock recently traded at 2 times the next 12-month earnings vs. a P/E of 2 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)