OGN · Organon & Co.

Organon's first quarter 2026 results reflect a challenging operating environment, with total revenue declining 4% as-reported and 9% on a constant-currency basis to $1.460 billion. The decline was driven primarily by a 16% drop in Women's Health revenue, as Nexplanon sales fell 21% ex-FX due to decreased U.S. physician demand following the five-year label approval and ongoing federal funding uncertainty, and oral contraceptive sales in China weakened. Fertility revenue also declined 9% ex-FX amid U.S. pricing pressure. In contrast, Biosimilars revenue surged 23% as-reported, led by strong Hadlima demand in the U.S. and contributions from new assets Bildyos, Bilprevda, and Tofidence. Established Brands revenue edged down 1% as-reported (down 7% ex-FX), with Emgality growth partially offsetting respiratory portfolio declines from pricing pressure and guideline changes affecting Singulair. Gross margin contracted to 53.6% (GAAP) and 59.0% (non-GAAP adjusted) from 55.6% and 61.7% a year ago, respectively, due to unfavorable pricing, product mix, and foreign exchange. Net income rose to $146 million from $87 million, but non-GAAP adjusted net income fell to $188 million from $265 million, reflecting lower adjusted gross profit. Adjusted EBITDA margin declined to 28.4% from 32.0%. The company declared a quarterly dividend of $0.02 per share. On April 26, 2026, Organon announced a pending all-cash merger with Sun Pharmaceutical Industries Limited, expected to close in early 2027. In light of the merger, Organon has suspended earnings calls and will not provide financial guidance. The balance sheet showed $1.12 billion in cash and $8.57 billion in debt as of March 31, 2026.