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Organon & Co. (OGN) is a global healthcare company dedicated to improving women's health and delivering innovative health solutions. The company offers a diverse portfolio of prescription therapies and medical devices, focusing on women's health, biosimilars, and established brands. Organon operates worldwide, with a significant portion of its revenue generated outside the United States, and leverages its manufacturing facilities across multiple countries to distribute its products.
- Established Brands - Offers over 60 medicines across therapeutic areas such as cardiovascular, respiratory, dermatology, and non-opioid pain management, many of which have lost market exclusivity and face generic competition.
- Women’s Health - Focuses on contraception and fertility products, including Nexplanon (etonogestrel implant), NuvaRing (etonogestrel/ethinyl estradiol vaginal ring), and Follistim AQ (follitropin beta injection). Also includes innovative devices like the Jada System for postpartum hemorrhage and Xaciato for bacterial vaginosis.
- Biosimilars - Develops and markets treatments for oncology and immunology, including products like Ontruzant (trastuzumab), Renflexis (infliximab-abda), and Hadlima (adalimumab-bwwd), with a growing presence in global markets.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Kevin Ali Executive | Chief Executive Officer (CEO) | None | CEO of Organon since its inception in 2021; previously held leadership roles at Merck, including President of Merck International and Emerging Markets. | View Report → |
Kirke Weaver Executive | EVP, General Counsel, and Corporate Secretary | None | General Counsel of Organon since 2021; played a key role in Organon's launch; previously held senior legal roles at Merck for 18 years. | |
Matthew Walsh Executive | Executive Vice President and CFO | Board Member at Certara, Inc. | CFO of Organon since 2021; previously EVP and CFO at Allergan and Catalent; extensive experience in financial leadership in the pharmaceutical industry. | |
Carrie S. Cox Board | Chairman of the Board | Chairman at Cartesian Therapeutics and Solventum Corporation; Director at Texas Instruments Inc. | Chairman of Organon’s Board since 2021; extensive executive experience in the pharmaceutical industry, including leadership roles at Humacyte, Schering-Plough, and Pharmacia. | |
Cynthia M. Patton Board | Independent Director | General Counsel and Corporate Secretary at Tessera Therapeutics; Trustee at Vassar College; Board Member at Martin Luther King, Jr. Community Hospital and Los Angeles Music Center | Director at Organon since 2021; legal and compliance expert with leadership experience at Verily Life Sciences and Amgen. | |
Deborah Leone Board | Independent Director | Director at Goldman Sachs Bank USA, Goldman Sachs Philanthropy Fund, Ayco Charitable Foundation; Trustee at Syracuse University; Director at Corebridge Financial, Inc. | Director at Organon since 2021; retired partner at Goldman Sachs with expertise in financial and operational leadership. | |
Grace Puma Board | Independent Director | Director at Target Corporation | Director at Organon since 2021; former EVP and COO at PepsiCo; extensive expertise in global procurement and supply chain management. | |
Helene Gayle, M.D. Board | Independent Director | President of Spelman College; Director at The Coca-Cola Company and Palo Alto Networks Inc. | Director at Organon since 2021; global health expert with leadership experience in public health and non-profit organizations; President of Spelman College. | |
Rochelle Lazarus Board | Independent Director | Chairman Emeritus of Ogilvy & Mather; Director at Blackstone, Inc. and Rockefeller Capital Management | Director at Organon since 2021; extensive experience in advertising and marketing; serves on multiple boards and charitable organizations. | |
Shalini Sharp Board | Independent Director | Director at Neurocrine Biosciences, Inc. | Director at Organon since 2021; financial expert with extensive experience in the biopharmaceutical industry, including CFO roles at Ultragenyx and Agenus. |
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With the $180 million operating expense for Dermavant in 2025 primarily focused on launching VTAMA in atopic dermatitis , how confident are you in achieving the projected sales of at least $150 million , and what contingencies are in place if the launch underperforms?
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Given that VTAMA's performance in the psoriasis market was limited, and you have high expectations for its potential in atopic dermatitis , what specific strategies will you employ to overcome the challenges faced in psoriasis and ensure success in this larger but competitive market?
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You mentioned that the Dermavant acquisition will be dilutive to profitability in 2025 by about 0.5 percentage points of EBITDA margin , how do you plan to offset this dilution, and what measures are you taking to ensure it becomes accretive in 2026 and beyond?
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The Fertility business is facing a softer outlook for the year, tempering down from a 9% volume growth rate to approximately 7% , could you elaborate on the factors contributing to this slowdown and how you plan to achieve the projected strong rebound in 2025?
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With increasing competitive pressures and pricing headwinds in certain mature products such as NuvaRing, DULERA, and RENFLEXIS , how do you intend to mitigate these challenges to maintain your gross margin and overall profitability?
| Customer | Relationship | Segment | Details |
|---|---|---|---|
McKesson | Major drug wholesaler | All | 12% of total gross A/R as of 12/31/2024 |
Cardinal Health | Major drug wholesaler | All | 7% of total gross A/R as of 12/31/2024 |
Cencora, Inc. | Major drug wholesaler | All | 6% of total gross A/R as of 12/31/2024 |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Dermavant Sciences Ltd. | 2024 | Completed acquisition where Organon executed a merger via its subsidiary with Dermavant, with total potential consideration of up to $1.2 billion (including an upfront payment of $175 million, milestone and commercial payments) to bolster its dermatology portfolio with VTAMA® (tapinarof) cream, subject to FDA approval and regulatory conditions. |
Claria Medical, Inc. | 2023 | Planned acquisition/investment via a strategic investment, involving an $8 million upfront payment with an option to acquire the company for an additional $47 million based on milestones, intended to develop an investigational device for minimally invasive laparoscopic hysterectomy. |
Bayer AG (Product rights for Marvelon™ and Mercilon™) | 2022 | Completed asset acquisition of the product rights and related inventory for Marvelon™ and Mercilon™, executed in stages across 2022 with payments of $30 million (plus $35 million subsequently) for China and $30 million for Vietnam, thereby expanding Organon’s prescription contraceptive portfolio in key Asian markets. |
Recent press releases and 8-K filings for OGN.
- Q1 2025 Revenue & EPS: Organon reported revenue of $1.513 billion with a 7% decline YoY, alongside a diluted EPS of $0.33 and an adjusted diluted EPS of $1.02, aligning with expectations .
- Core Product Performance: NEXPLANON is on track to exceed $1 billion in annual revenue and VTAMA aims for $150 million, supported by growth in fertility and biosimilar segments .
- Robust Financial Execution: Delivered free cash flow of $146 million in Q1 and initiated restructuring to achieve $200 million in annual savings, boosting adjusted EBITDA margins .
- Capital Allocation & Deleveraging: Reset its dividend policy, including a dividend rate of $0.08 per share, to redirect funds toward debt reduction with a target net leverage ratio below 4x by year-end .
- Full-Year Guidance: Affirmed guidance for 2025 with expectations of over $900 million in free cash flow before one-time costs .