Organon & Co. (OGN) Bundle
A Brief History of Organon & Co.
Company Overview
Organon & Co. is a global healthcare company focused on women's health, biosimilars, and established brands. As of September 30, 2024, Organon reported total assets of $12.752 billion, an increase from $12.058 billion at the end of 2023.
Financial Performance
For the nine months ended September 30, 2024, Organon generated revenues of $4.811 billion, compared to $4.665 billion in the same period of 2023. The company reported a net income of $755 million for the same period, up from $477 million in 2023.
| Financial Metrics | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Revenues | $4.811 billion | $4.665 billion |
| Net Income | $755 million | $477 million |
| Gross Profit | $2.819 billion | $2.833 billion |
| Operating Cash Flow | $549 million | $402 million |
Stockholder Equity
As of September 30, 2024, total stockholders' equity was $493 million, a significant recovery from a deficit of $70 million at the end of 2023. The company declared quarterly dividends of $0.28 per share during this period.
Debt and Financing Activities
Organon's long-term debt stood at $8.739 billion as of September 30, 2024, with a weighted-average interest rate of 5.3%. The company made interest payments totaling $292 million for the nine months ended September 30, 2024.
| Debt Details | Amount | Maturity |
|---|---|---|
| Term Loan B Facility | $1.543 billion | 2031 |
| EURIBOR Term Loan | $809 million | 2028 |
| Secured Notes | $2.100 billion | 2028 |
| Unsecured Notes | $2.000 billion | 2031 |
Product Portfolio and Sales
The company has a diverse product portfolio, with significant sales contributions from women's health products. For the three months ended September 30, 2024, worldwide sales for the major products included:
| Product | Sales (Q3 2024) | Sales (Q3 2023) |
|---|---|---|
| Nexplanon/Implanon NXT | $243 million | $220 million |
| NuvaRing | $23 million | $43 million |
| Marvelon/Mercilon | $29 million | $30 million |
| Follistim AQ | $63 million | $54 million |
Overall, Organon has demonstrated a robust financial recovery and growth trajectory as of 2024, marked by increased revenues, improved net income, and effective management of its debt portfolio.
A Who Owns Organon & Co. (OGN)
Major Shareholders
As of 2024, the ownership structure of Organon & Co. is composed of institutional investors, mutual funds, and individual shareholders. The top institutional shareholders include:
| Shareholder | Shares Owned (millions) | Percentage of Ownership |
|---|---|---|
| Vanguard Group, Inc. | 30.5 | 11.8% |
| BlackRock, Inc. | 25.7 | 10.0% |
| State Street Corporation | 20.3 | 7.9% |
| Wellington Management Co. LLP | 15.1 | 5.9% |
| FMR LLC (Fidelity) | 12.4 | 4.8% |
Insider Ownership
Insider ownership consists of executives and board members who hold shares in the company. As of 2024, the following are notable insiders:
| Name | Position | Shares Owned (thousands) |
|---|---|---|
| Kevin Ali | CEO | 350 |
| Mark Timney | President | 250 |
| Mary K. Pendergast | Board Member | 100 |
| John R. Sweeney | Board Member | 80 |
Stock Performance
Organon & Co. (OGN) has experienced fluctuations in its stock performance throughout 2024. The stock price as of September 30, 2024, was $28.50, with a year-to-date increase of approximately 12%.
Market Capitalization
The market capitalization of Organon & Co. as of September 30, 2024, is approximately $7.3 billion, reflecting an increase from $6.5 billion at the beginning of the year.
Dividend Information
Organon has declared a quarterly dividend of $0.28 per share, which is consistent with the previous quarter's dividend. The total dividends paid in 2024 amount to approximately $252 million.
Recent Developments
In 2024, Organon entered into several strategic agreements, including an expanded partnership with Eli Lilly for the distribution of migraine medications, which is expected to enhance revenue streams significantly.
Ownership Summary
The ownership of Organon & Co. is predominantly held by institutional investors, with significant stakes from major investment firms. Insider ownership is also present, representing confidence in the company's strategic direction and performance.
Organon & Co. (OGN) Mission Statement
Mission Statement Overview
The mission of Organon & Co. is to provide innovative health solutions that empower women and enhance their health throughout their lives. The company focuses on addressing unmet health needs in women’s health, biosimilars, and established brands.
Core Values
- Integrity: Upholding the highest standards of ethics and transparency.
- Collaboration: Working together across boundaries to meet the needs of our customers.
- Innovation: Continuously seeking new solutions to improve health outcomes.
- Accountability: Taking responsibility for our actions and results.
Strategic Objectives
Organon aims to:
- Expand access to essential health solutions for women globally.
- Invest in research and development to innovate in women’s health and biosimilars.
- Enhance operational efficiency and reduce costs to improve profitability.
- Foster a diverse and inclusive workplace that reflects the communities we serve.
Financial Performance
As of September 30, 2024, Organon reported the following financial highlights:
| Financial Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Net Income | $755 million | $477 million | 58.5% |
| Gross Profit | $923 million | $907 million | 1.8% |
| Operating Cash Flow | $549 million | $402 million | 36.6% |
| Dividends Paid | $223 million | $221 million | 0.9% |
Product Portfolio
Organon operates in the following key areas:
- Women's Health: Products such as Nexplanon and NuvaRing.
- Biosimilars: Including products like Hadlima and Ontruzant.
- Established Brands: Well-known medications in various therapeutic categories.
Sales Performance
Worldwide sales for the nine months ended September 30, 2024, were reported as follows:
| Product Category | Sales (in millions) | % Change |
|---|---|---|
| Women's Health | $1,952 million | 10% |
| Biosimilars | $450 million | 15% |
| Established Brands | $2,500 million | 3% |
Market Position and Growth
Organon continues to strengthen its market position through strategic partnerships and acquisitions. The company recently expanded its agreement with Lilly to distribute and promote Emgality in multiple new markets, enhancing its portfolio and market reach.
Conclusion
Organon's commitment to women's health and innovative solutions reflects in its strategic initiatives and robust financial performance. As the company progresses through 2024, it aims to further solidify its impact in the healthcare industry.
How Organon & Co. (OGN) Works
Company Overview
Organon & Co. is a global healthcare company focused on women's health, biosimilars, and established brands. The company operates as a single segment, providing a diverse portfolio of prescription therapies and medical devices.
Financial Performance
As of September 30, 2024, Organon reported the following key financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Income | $359 million | $58 million | 520% |
| Gross Profit | $923 million | $907 million | 2% |
| Total Revenue | $1.582 billion | $1.519 billion | 4% |
| Operating Income | $501 million | $365 million | 37% |
| EPS (Diluted) | $1.38 | $0.23 | 500% |
Sales Overview
Worldwide sales for the nine months ended September 30, 2024, were $4.811 billion, reflecting a 3% increase compared to $4.665 billion for the same period in 2023.
| Region | Sales Q3 2024 (in millions) | Sales Q3 2023 (in millions) | Change (%) |
|---|---|---|---|
| United States | $398 | $370 | 8% |
| International | $1,184 | $1,149 | 3% |
Research and Development
For the nine months ended September 30, 2024, Organon's research and development expenses were $339 million, a decrease of 14% compared to $394 million in the same period of 2023.
Cost Structure
As of Q3 2024, the breakdown of costs is as follows:
| Cost Category | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (%) |
|---|---|---|---|
| Cost of Sales | $659 | $612 | 8% |
| Selling, General and Administrative | $422 | $538 | (22%) |
| Research and Development | $111 | $137 | (19%) |
Debt and Financing
As of September 30, 2024, Organon had total long-term debt of $8.739 billion.
| Debt Type | Outstanding Amount (in millions) | Maturity |
|---|---|---|
| Term Loan B Facility | $1,543 | 2031 |
| Secured Notes | $2,100 | 2028 |
| Euro-Denominated Secured Notes | $1,394 | 2028 |
| Other Borrowings | $500 | 2034 |
Cash Flow Analysis
For the nine months ended September 30, 2024, Organon reported cash flows as follows:
| Cash Flow Category | Amount (in millions) |
|---|---|
| Net Cash Provided by Operating Activities | $549 |
| Net Cash Used in Investing Activities | ($217) |
| Net Cash Used in Financing Activities | ($286) |
Working Capital
Organon's working capital was $2.0 billion as of September 30, 2024, an increase from $1.6 billion at the end of 2023.
Dividend Payments
Organon declared cash dividends of $0.28 per share in Q3 2024, consistent with previous payments.
Market Position and Strategy
Organon focuses on expanding its product offerings and market reach, particularly in women's health and biosimilars. The company has entered collaborations to enhance its portfolio, including agreements with Samsung Bioepis for biosimilar development.
Key Products
Organon's major products include:
- Nexplanon/Implanon: $704 million in sales for nine months ended September 30, 2024.
- Proscar: $73 million in sales for nine months ended September 30, 2024.
- Diprospan: Increased sales by 78% due to recovery from manufacturing issues.
How Organon & Co. (OGN) Makes Money
Revenue Streams
Organon & Co. generates revenue through various product segments, with a strong focus on women's health, biosimilars, and established brands. As of September 30, 2024, the company reported worldwide sales of $4.8 billion for the nine months ended, marking a 3% increase from the previous year. Key products contributing to revenue include:
| Product | Q3 2024 Sales (in millions) | Q3 2023 Sales (in millions) | % Change |
|---|---|---|---|
| Nexplanon/Implanon NXT | 243 | 220 | 10% |
| NuvaRing | 23 | 43 | (45%) |
| Follistim AQ | 63 | 54 | 16% |
| Hadlima | 89 | 55 | 62% |
| Diprospan | 37 | 31 | 19% |
Operating Income and Expenses
For the nine months ended September 30, 2024, Organon reported:
- Net income of $755 million, an increase from $477 million in 2023.
- Gross profit of $2.819 billion, slightly down from $2.833 billion in the previous year.
- Cost of sales increased to $1.992 billion from $1.832 billion, reflecting a 9% rise.
- Selling, general and administrative expenses decreased to $1.290 billion from $1.424 billion.
- Research and development expenses decreased to $339 million from $394 million.
Key Financial Metrics
As of September 30, 2024, Organon had:
- Cash and cash equivalents of $763 million.
- Long-term debt amounting to $8.749 billion.
- Working capital of $2.0 billion, up from $1.6 billion at the end of 2023.
Product Portfolio Performance
Organon’s product portfolio includes over 60 medicines and medical devices, with specific performance highlights:
| Product Category | 2024 Sales (in millions) | 2023 Sales (in millions) | % Change |
|---|---|---|---|
| Women's Health | 1,210 | 1,054 | 15% |
| Biosimilars | 499 | 394 | 27% |
| Established Brands | 3,102 | 3,217 | (4%) |
Market Trends and Future Outlook
The company has seen a significant recovery in sales of products like Diprospan, which increased 78% for the nine months ended September 30, 2024, due to resolution of manufacturing issues. Additionally, the acquisition of distribution rights for Emgality and Rayvow contributed $69 million in sales for the nine months ended September 30, 2024. These strategic acquisitions and product performances are anticipated to drive revenue growth moving forward.
Debt and Financing Activities
Organon has engaged in various financing activities, including:
- Issuing $1.036 billion in debt during the nine months ended September 30, 2024.
- Repayments of $1.045 billion in debt, demonstrating active management of financial obligations.
- Interest payments totaling $292 million for the nine months ended September 30, 2024.
The average maturity of the company’s long-term debt is approximately 5.5 years, with a weighted-average interest rate of 5.3% as of September 30, 2024.
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Article updated on 8 Nov 2024
Resources:
- Organon & Co. (OGN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Organon & Co. (OGN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Organon & Co. (OGN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.