Organon & Co (OGN, Financial) released its Q3 2023 earnings report on November 2, 2023. The company reported a total revenue of $1.519 billion, marking a 1% decrease on an as-reported basis and excluding the impact of foreign currency, compared to Q3 2022.
Revenue Breakdown
Revenue from Women's Health decreased 8% on an as-reported basis and 7% excluding foreign exchange impact, primarily due to a 23% decrease in NuvaRing® sales, which continues to face generic competition. Biosimilars revenue increased 10% on an as-reported basis and excluding foreign exchange impact, driven by strong demand and volume growth in the United States and Canada. Established Brands revenue increased 2% as-reported and 3% excluding foreign exchange impact, despite the impact of Volume Based Procurement (VBP) initiatives in China.
Profitability and Earnings
Net income for Q3 2023 was $58 million, or $0.23 per diluted share, a significant decrease from $227 million, or $0.89 per diluted share, in Q3 2022. Non-GAAP Adjusted net income was $223 million, or $0.87 per diluted share, compared to $337 million, or $1.32 per diluted share, in 2022. The year-over-year decrease in net income was primarily due to lower Adjusted EBITDA and higher interest expense.
Capital Allocation and Full Year Guidance
Organon's Board of Directors declared a quarterly dividend of $0.28 per share, payable on December 14, 2023. As of September 30, 2023, the company had cash and cash equivalents of $414 million and debt of $8.7 billion. The company updated its full year 2023 guidance, lowering the revenue range to $6.15 billion to $6.25 billion, primarily reflecting current foreign currency exchange rates and macroeconomic factors in China.
About Organon & Co
Organon is a global healthcare company focused on improving the health of women throughout their lives. The company offers more than 60 medicines and products in women's health, a growing biosimilars business, and a large franchise of established medicines across a range of therapeutic areas.
Explore the complete 8-K earnings release (here) from Organon & Co for further details.
