New Jersey-based healthcare company Organon has announced robust financial results in the first quarter of 2024, showcasing significant growth in its women’s health and biosimilars segments.
Organon, a New Jersey-based global healthcare company focused on women’s health, has reported an encouraging start to 2024 with a solid financial performance in the first quarter ended March 31. The company demonstrated a 5% increase in revenue, reaching $1,622 million, and a 7% rise on a constant currency basis compared to the same quarter last year.
Specializing in women’s health, biosimilars, and established brands, Organon has shown significant strides in these areas. Notably, the Women’s Health segment saw an 11% increase in revenue, reaching $422 million. This growth was driven largely by the robust performance of Nexplanon, an etonogestrel implant, which saw a 34% rise excluding the effects of foreign exchange, attributed to favorable purchasing dynamics in the U.S. and beneficial price and discount rates. Additionally, the Jada system, a device designed for the control and treatment of postpartum hemorrhage, nearly doubled its sales from the previous year, indicating strong market acceptance.
Biosimilars also showcased remarkable growth, with a 46% increase in revenue to $170 million. This surge was primarily fueled by higher demand for Ontruzant, a biosimilar to trastuzumab, following a significant tender in Brazil. Hadlima, launched in the U.S. in July 2023, also contributed notably to this segment’s growth, achieving $30 million in revenue compared to $5 million in the prior year period.
The Established Brands segment, despite facing significant market competition and regulatory pressures, reported stable revenue growth, supported by licensing agreements for Emgality and Rayvow, and a recovery in some injectable steroid products. This segment’s revenue made a slight upward tick of 2% on a constant currency basis to $1,001 million.
From a profitability perspective, Organon reported a net income increase of 14% to $201 million. This financial robustness is further illustrated by a non-GAAP adjusted net income of $315 million, and a 33.2% adjusted EBITDA margin. Although these figures reflect a slight decline in gross margins due to product mix shifts, foreign exchange translations, and heightened inflation impacts, they demonstrate Organon’s capacity to manage costs effectively. The successful containment of operating expenses, especially in R&D, helped in mitigating the increased cost of goods sold.
Looking ahead, Organon is poised to maintain its trajectory, reaffirming its full-year financial guidance for 2024. The company remains focused on delivering revenue growth and improving non-GAAP adjusted EBITDA margins. It is important to note that these forecasts are non-GAAP as certain potential legal, tax, and acquisition-related expenses are not predictable at this juncture.
In conclusion, Organon’s first quarter results reflect a strong beginning to 2024, underscoring its dedicated efforts in advancing women’s health and expanding its product portfolio across biosimilars and established brands. With strategic focus and operational discipline, Organon aims to continue leveraging its robust product base and commercial capabilities to achieve sustainable growth.