Organon Reports Results for the Second Quarter Ended June 30, 2024
-
Second quarter 2024 revenue of
$1.607 billion , flat year-over-year on an as-reported basis and up 2% at constant currency -
Second quarter 2024 diluted earnings per share of
$0.75 and non-GAAP Adjusted diluted earnings per share of$1.12 ; both reported and non-GAAP Adjusted diluted earnings per share include$15 million of expense, or$0.05 per share, for acquired in-process research and development (IPR&D) and milestones -
Second quarter 2024 net income of
$195 million and Adjusted EBITDA (non-GAAP) of$513 million -
Guidance range for full year 2024 revenue narrowed to
$6.250 billion to$6.450 billion , mid-point of the range, affirmed; Guidance range for Adjusted EBITDA margin (non-GAAP) affirmed at 31.0%-33.0%
"We are very pleased with our year to date results," said
Second Quarter 2024 Revenue |
||||||||||
in $ millions |
|
Q2 2024 |
|
Q2 2023 |
|
VPY |
|
VPY ex-FX |
||
Women’s Health |
|
$ |
449 |
|
$ |
438 |
|
3% |
|
3% |
Biosimilars |
|
|
164 |
|
|
135 |
|
22% |
|
22% |
Established Brands |
|
|
963 |
|
|
995 |
|
(3)% |
|
(1)% |
Other (1) |
|
|
31 |
|
|
40 |
|
(20)% |
|
(20)% |
Revenues |
|
$ |
1,607 |
|
$ |
1,608 |
|
—% |
|
2% |
Totals may not foot due to rounding and percentages are computed using unrounded amounts. |
(1) Other includes manufacturing sales to third parties. |
For the second quarter of 2024, total revenue was
Women’s Health revenue increased 3% on both an as-reported basis and ex-FX basis in the second quarter of 2024 compared with the second quarter of 2023 primarily driven by 13% ex-FX growth in Nexplanon® (etonogestrel implant). Nexplanon's strong performance was primarily due to favorable discount rates in
Performance in the
Biosimilars revenue grew 22% on both an as-reported basis and ex-FX basis in the second quarter of 2024, compared with the second quarter of 2023, primarily due to the uptake of Hadlima® (adalimumab-bwwd) since its
Established Brands revenue was down 3% on an as-reported basis and declined 1% ex-FX in the second quarter of 2024. Contribution from the recent licensing of Emgality® (galcanezumab) and RayvowTM (lasmiditan)(1, 2), together with a recovery in certain injectable steroid products following last year's market action partially offset the impacts of Volume Based Procurement initiatives in
(1) Emgality isa trademark registered in |
(2) Rayvow is a registered trademark of Eli Lilly in the |
Second Quarter 2024 Profitability |
||||||||
|
||||||||
in $ millions, except per share amounts |
|
Q2 2024 |
|
Q2 2023 |
|
VPY |
||
|
||||||||
Revenues |
|
$ |
1,607 |
|
$ |
1,608 |
|
—% |
Cost of sales |
|
|
668 |
|
|
640 |
|
4% |
Gross profit |
|
|
939 |
|
|
968 |
|
(3)% |
Non-GAAP Adjusted gross profit (1) |
|
|
996 |
|
|
1,012 |
|
(2)% |
Net income |
|
|
195 |
|
|
242 |
|
(19)% |
Non-GAAP Adjusted net income (1) |
|
|
289 |
|
|
336 |
|
(14)% |
Diluted Earnings per Share (EPS) |
|
|
0.75 |
|
|
0.95 |
|
(21)% |
Non-GAAP Adjusted diluted EPS (1) |
|
|
1.12 |
|
|
1.31 |
|
(15)% |
Acquired IPR&D and milestones |
|
|
15 |
|
|
— |
|
NM |
Per share impact to diluted EPS from acquired IPR&D and milestones |
|
|
(0.05) |
|
|
— |
|
NM |
|
|
|
|
|
|
|
||
Adjusted EBITDA (Non-GAAP) (1,2) |
|
|
513 |
|
|
530 |
|
(3)% |
|
|
|
|
|
|
|
||
|
|
Q2 2024 |
|
Q2 2023 |
|
|
||
Gross margin |
|
58.4% |
|
60.2 % |
|
|
||
Non-GAAP Adjusted gross margin (1) |
|
62.0% |
|
62.9 % |
|
|
||
Adjusted EBITDA margin (Non-GAAP) (1, 2) |
|
31.9% |
|
33.0 % |
|
|
(1) |
See Tables 4 and 5 for reconciliations of GAAP to non-GAAP financial measures. |
|
(2) |
Adjusted EBITDA and Adjusted EBITDA margin included |
Gross margin was 58.4% as-reported and 62.0% on a non-GAAP adjusted basis in the second quarter of 2024 compared with 60.2% as-reported and 62.9% on a non-GAAP adjusted basis in the second quarter of 2023. The lower non-GAAP Adjusted gross margin was primarily related to unfavorable product mix, foreign exchange translation and higher inflation impacts to material and distribution costs.
Net income for the second quarter of 2024 was
Non-GAAP Adjusted EBITDA margin was 31.9% in the second quarter of 2024 compared with 33.0% in the second quarter of 2023 primarily due to lower non-GAAP Adjusted gross margin. Total non-GAAP operating expenses (selling, general and administrative and research and development) were down 2% year over year.
Capital Allocation
Today, Organon’s Board of Directors declared a quarterly dividend of
As of
Full Year Guidance
Organon does not provide GAAP financial measures on a forward-looking basis because the company cannot predict with reasonable certainty and without unreasonable effort, the ultimate outcome of legal proceedings, unusual gains and losses, the occurrence of matters creating GAAP tax impacts, and acquisition-related expenses. These items are uncertain, depend on various factors, and could be material to Organon’s results computed in accordance with GAAP.
Full year 2024 financial guidance is presented below on a non-GAAP basis, except revenue.
|
Previous guidance as
|
Current guidance |
Revenues |
|
|
Adjusted gross margin |
61.0% - 63.0% |
Unchanged |
SG&A |
|
Unchanged |
R&D |
|
|
Adjusted EBITDA margin (Non-GAAP) |
31.0% - 33.0% |
Unchanged |
Interest |
|
Unchanged |
Depreciation |
|
Unchanged |
Effective non-GAAP tax rate |
18.5% - 20.5% |
Unchanged |
Fully diluted weighted average shares outstanding |
~259M |
Unchanged |
*Updated R&D expense guidance includes |
Webcast Information
Organon will host a conference call at
https://registrations.events/direct/Q4I585119
Following registration, participants will receive a confirmation email containing details on how to join the conference call, including dial-in information and a unique passcode and registrant ID. Pre-registration will allow participants to bypass an operator and be placed directly into the call.
About Organon
Organon is an independent global healthcare company with a strategy to help improve the health of women throughout their lives. Organon’s diverse portfolio offers more than 60 medicines and products in women’s health, biosimilars, and a large franchise of established medicines across a range of therapeutic areas. In addition to Organon’s current products, the company invests in innovative solutions and research to drive future growth opportunities in women’s health and biosimilars. In addition, Organon is pursuing opportunities to collaborate with biopharmaceutical partners and innovators looking to commercialize their products by leveraging its scale and agile presence in fast growing international markets.
Organon has a global footprint with significant scale and geographic reach, world-class commercial capabilities, and approximately 10,000 employees with headquarters located in
For more information, visit http://www.organon.com and connect with us on LinkedIn, Instagram, X (formerly known as Twitter) and Facebook.
Cautionary Note Regarding Non-GAAP Financial Measures
This press release contains “non-GAAP financial measures,” which are financial measures that either exclude or include amounts that are correspondingly not excluded or included in the most directly comparable measures calculated and presented in accordance with
In addition, the company’s full-year 2024 guidance measures (other than revenue) are provided on a non-GAAP basis because the company is unable to reasonably predict certain items contained in the GAAP measures. Such items include, but are not limited to, acquisition related expenses, restructuring and related expenses, stock-based compensation, the ultimate outcome of legal proceedings, unusual gains and losses, the occurrence of matters creating GAAP tax impacts and other items not reflective of the company's ongoing operations.
The company’s management uses the non-GAAP financial measures described above to evaluate the company’s performance and to guide operational and financial decision making. Further, the company’s management believes that these non-GAAP financial measures, which exclude certain items, help to enhance its ability to meaningfully communicate its underlying business performance, financial condition and results of operations.
Cautionary Note Regarding Forward-Looking Statements
Except for historical information, this press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the
Risks and uncertainties include, but are not limited to, pricing pressures globally, including rules and practices of managed care groups, judicial decisions and governmental laws and regulations related to Medicare, Medicaid and health care reform, pharmaceutical reimbursement and pricing in general; an inability to fully execute on our product development and commercialization plans in
The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the company’s filings with the
TABLE 1 |
|||||||||||
|
|||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
Revenues |
$ |
1,607 |
|
$ |
1,608 |
|
$ |
3,229 |
|
$ |
3,146 |
Cost of sales |
|
668 |
|
|
640 |
|
|
1,333 |
|
|
1,220 |
Gross Profit |
|
939 |
|
|
968 |
|
|
1,896 |
|
|
1,926 |
|
|
|
|
|
|
|
|
||||
Selling, general and administrative |
|
437 |
|
|
451 |
|
|
868 |
|
|
886 |
Research and development |
|
116 |
|
|
128 |
|
|
228 |
|
|
257 |
Acquired in-process research and development and milestones |
|
15 |
|
|
— |
|
|
30 |
|
|
8 |
Restructuring costs |
|
— |
|
|
— |
|
|
23 |
|
|
4 |
Interest expense |
|
131 |
|
|
132 |
|
|
262 |
|
|
264 |
Exchange (gains) losses |
|
(1) |
|
|
2 |
|
|
5 |
|
|
11 |
Other expense, net |
|
6 |
|
|
1 |
|
|
9 |
|
|
7 |
Income before income taxes |
|
235 |
|
|
254 |
|
|
471 |
|
|
489 |
Taxes on income |
|
40 |
|
|
12 |
|
|
75 |
|
|
70 |
Net income |
$ |
195 |
|
$ |
242 |
|
$ |
396 |
|
$ |
419 |
|
|
|
|
|
|
|
|
||||
Earnings per share: |
|
|
|
|
|
|
|
||||
Basic |
$ |
0.76 |
|
$ |
0.95 |
|
$ |
1.54 |
|
$ |
1.64 |
Diluted |
$ |
0.75 |
|
$ |
0.95 |
|
$ |
1.53 |
|
$ |
1.64 |
|
|
|
|
|
|
|
|
||||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
||||
Basic |
|
257,288 |
|
|
255,341 |
|
|
256,492 |
|
|
254,869 |
Diluted |
|
258,598 |
|
|
255,953 |
|
|
258,480 |
|
|
256,064 |
TABLE 2 |
|||||||||||||||||||||||||||||||||||
Sales by top products (Unaudited, $ in millions) |
|||||||||||||||||||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||||||||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||||||||||||||||||||||
|
|
|
Int’l |
|
Total |
|
|
|
Int’l |
|
Total |
|
|
|
Int’l |
|
Total |
|
|
|
Int’l |
|
Total |
||||||||||||
Women’s Health |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Nexplanon/Implanon NXT |
$ |
171 |
|
$ |
70 |
|
$ |
242 |
|
$ |
159 |
|
$ |
56 |
|
$ |
214 |
|
$ |
324 |
|
$ |
137 |
|
$ |
462 |
|
$ |
272 |
|
$ |
107 |
|
$ |
380 |
Follistim AQ |
|
22 |
|
|
40 |
|
|
62 |
|
|
26 |
|
|
44 |
|
|
70 |
|
|
33 |
|
|
75 |
|
|
108 |
|
|
52 |
|
|
73 |
|
|
125 |
NuvaRing (1) |
|
10 |
|
|
19 |
|
|
29 |
|
|
23 |
|
|
23 |
|
|
46 |
|
|
26 |
|
|
41 |
|
|
67 |
|
|
48 |
|
|
47 |
|
|
94 |
Ganirelix Acetate Injection |
|
5 |
|
|
22 |
|
|
27 |
|
|
4 |
|
|
29 |
|
|
34 |
|
|
11 |
|
|
45 |
|
|
56 |
|
|
11 |
|
|
53 |
|
|
63 |
Marvelon/Mercilon |
|
— |
|
|
41 |
|
|
41 |
|
|
— |
|
|
29 |
|
|
29 |
|
|
— |
|
|
73 |
|
|
73 |
|
|
— |
|
|
67 |
|
|
67 |
Jada |
|
14 |
|
|
— |
|
|
14 |
|
|
11 |
|
|
— |
|
|
11 |
|
|
27 |
|
|
— |
|
|
27 |
|
|
18 |
|
|
— |
|
|
18 |
Other Women’s Health (1) (2) |
|
13 |
|
|
23 |
|
|
34 |
|
|
10 |
|
|
25 |
|
|
35 |
|
|
27 |
|
|
52 |
|
|
79 |
|
|
20 |
|
|
52 |
|
|
73 |
Biosimilars |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Renflexis |
|
56 |
|
|
13 |
|
|
69 |
|
|
60 |
|
|
11 |
|
|
70 |
|
|
111 |
|
|
27 |
|
|
138 |
|
|
114 |
|
|
18 |
|
|
132 |
Ontruzant |
|
10 |
|
|
38 |
|
|
48 |
|
|
12 |
|
|
21 |
|
|
33 |
|
|
18 |
|
|
69 |
|
|
87 |
|
|
25 |
|
|
29 |
|
|
54 |
Brenzys |
|
— |
|
|
12 |
|
|
12 |
|
|
— |
|
|
13 |
|
|
13 |
|
|
— |
|
|
36 |
|
|
36 |
|
|
— |
|
|
32 |
|
|
32 |
Aybintio |
|
— |
|
|
7 |
|
|
7 |
|
|
— |
|
|
12 |
|
|
12 |
|
|
— |
|
|
15 |
|
|
15 |
|
|
— |
|
|
22 |
|
|
22 |
Hadlima |
|
20 |
|
|
8 |
|
|
28 |
|
|
— |
|
|
7 |
|
|
7 |
|
|
42 |
|
|
16 |
|
|
58 |
|
|
— |
|
|
12 |
|
|
12 |
Established Brands |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cardiovascular |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Zetia (1) |
|
2 |
|
|
73 |
|
|
75 |
|
|
2 |
|
|
94 |
|
|
95 |
|
|
4 |
|
|
155 |
|
|
159 |
|
|
4 |
|
|
180 |
|
|
184 |
Vytorin |
|
2 |
|
|
26 |
|
|
28 |
|
|
1 |
|
|
37 |
|
|
38 |
|
|
3 |
|
|
52 |
|
|
56 |
|
|
3 |
|
|
65 |
|
|
67 |
Atozet |
|
— |
|
|
140 |
|
|
140 |
|
|
— |
|
|
143 |
|
|
143 |
|
|
— |
|
|
271 |
|
|
271 |
|
|
— |
|
|
271 |
|
|
271 |
Rosuzet |
|
— |
|
|
9 |
|
|
9 |
|
|
— |
|
|
17 |
|
|
17 |
|
|
— |
|
|
25 |
|
|
25 |
|
|
— |
|
|
35 |
|
|
35 |
Cozaar/Hyzaar |
|
2 |
|
|
58 |
|
|
60 |
|
|
2 |
|
|
69 |
|
|
71 |
|
|
5 |
|
|
122 |
|
|
127 |
|
|
4 |
|
|
152 |
|
|
156 |
Other Cardiovascular(1) (2) |
|
1 |
|
|
31 |
|
|
32 |
|
|
1 |
|
|
36 |
|
|
36 |
|
|
1 |
|
|
71 |
|
|
71 |
|
|
1 |
|
|
70 |
|
|
71 |
Respiratory |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Singulair |
|
2 |
|
|
90 |
|
|
93 |
|
|
3 |
|
|
77 |
|
|
80 |
|
|
5 |
|
|
186 |
|
|
190 |
|
|
5 |
|
|
194 |
|
|
199 |
Nasonex (1) |
|
— |
|
|
60 |
|
|
60 |
|
|
— |
|
|
66 |
|
|
66 |
|
|
— |
|
|
137 |
|
|
137 |
|
|
— |
|
|
137 |
|
|
137 |
Dulera |
|
39 |
|
|
8 |
|
|
47 |
|
|
38 |
|
|
10 |
|
|
48 |
|
|
82 |
|
|
21 |
|
|
103 |
|
|
76 |
|
|
18 |
|
|
95 |
Clarinex |
|
1 |
|
|
35 |
|
|
35 |
|
|
1 |
|
|
38 |
|
|
39 |
|
|
2 |
|
|
71 |
|
|
73 |
|
|
2 |
|
|
77 |
|
|
79 |
Other Respiratory(1) (2) |
|
8 |
|
|
4 |
|
|
13 |
|
|
13 |
|
|
4 |
|
|
17 |
|
|
15 |
|
|
6 |
|
|
22 |
|
|
25 |
|
|
8 |
|
|
33 |
Non-Opioid Pain, Bone and Dermatology |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Arcoxia |
|
— |
|
|
68 |
|
|
68 |
|
|
— |
|
|
72 |
|
|
72 |
|
|
— |
|
|
143 |
|
|
143 |
|
|
— |
|
|
143 |
|
|
143 |
Fosamax |
|
1 |
|
|
34 |
|
|
35 |
|
|
1 |
|
|
44 |
|
|
44 |
|
|
3 |
|
|
72 |
|
|
74 |
|
|
1 |
|
|
81 |
|
|
82 |
Diprospan |
|
— |
|
|
37 |
|
|
37 |
|
|
— |
|
|
12 |
|
|
12 |
|
|
— |
|
|
66 |
|
|
66 |
|
|
— |
|
|
27 |
|
|
27 |
Other Non-Opioid Pain, Bone and Dermatology(1) |
|
5 |
|
|
73 |
|
|
78 |
|
|
2 |
|
|
67 |
|
|
71 |
|
|
9 |
|
|
141 |
|
|
151 |
|
|
7 |
|
|
127 |
|
|
133 |
Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Emgality/Rayvow |
|
— |
|
|
30 |
|
|
30 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
40 |
|
|
40 |
|
|
— |
|
|
— |
|
|
— |
Proscar |
|
— |
|
|
23 |
|
|
23 |
|
|
— |
|
|
24 |
|
|
25 |
|
|
1 |
|
|
49 |
|
|
50 |
|
|
1 |
|
|
51 |
|
|
52 |
Propecia |
|
2 |
|
|
27 |
|
|
28 |
|
|
2 |
|
|
35 |
|
|
36 |
|
|
3 |
|
|
47 |
|
|
51 |
|
|
4 |
|
|
66 |
|
|
69 |
Other(1) |
|
2 |
|
|
69 |
|
|
72 |
|
|
2 |
|
|
81 |
|
|
84 |
|
|
7 |
|
|
149 |
|
|
155 |
|
|
4 |
|
|
156 |
|
|
162 |
Other (3) |
|
— |
|
|
31 |
|
|
31 |
|
|
(2) |
|
|
41 |
|
|
40 |
|
|
(1) |
|
|
61 |
|
|
59 |
|
|
— |
|
|
79 |
|
|
79 |
Revenues |
$ |
388 |
|
$ |
1,219 |
$ |
1,607 |
$ |
371 |
$ |
1,237 |
$ |
1,608 |
$ |
758 |
$ |
2,471 |
$ |
3,229 |
$ |
697 |
|
$ |
2,449 |
$ |
3,146 |
Totals may not foot due to rounding. Trademarks appearing above in italics are trademarks of, or are used under license by, the Organon group of companies. |
(1) Sales of the authorized generic versions of NuvaRing, Zetia and Nasonex were previously included in other and have been reclassified to their respective brand name product. |
(2) Includes sales of products not listed separately. Revenues from Jada were previously reported as part of |
(3) Includes manufacturing sales to third parties. |
TABLE 3 |
|||||||||||
Sales by geographic area (Unaudited, $ in millions) |
|||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
|
$ |
457 |
|
$ |
467 |
|
$ |
907 |
|
$ |
867 |
|
|
388 |
|
|
371 |
|
|
758 |
|
|
697 |
|
|
260 |
|
|
261 |
|
|
546 |
|
|
585 |
|
|
216 |
|
|
234 |
|
|
421 |
|
|
459 |
|
|
251 |
|
|
234 |
|
|
525 |
|
|
448 |
Other (1) |
|
35 |
|
|
41 |
|
|
72 |
|
|
90 |
Revenues |
$ |
1,607 |
|
$ |
1,608 |
|
$ |
3,229 |
|
$ |
3,146 |
(1) Other includes manufacturing sales to third parties. |
TABLE 4 | |||||||||||
|
|||||||||||
|
|||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
GAAP Gross Profit |
$ |
939 |
|
$ |
968 |
|
$ |
1,896 |
|
$ |
1,926 |
Adjusted for: |
|
|
|
|
|
|
|
||||
Spin-related costs (1) |
3 |
|
10 |
|
6 |
|
20 |
||||
Manufacturing network costs (2) |
|
15 |
|
— |
|
|
25 |
|
|
— |
|
Stock-based compensation |
|
5 |
|
4 |
|
|
9 |
|
|
8 |
|
Amortization |
|
34 |
|
30 |
|
|
67 |
|
|
59 |
|
Other |
|
— |
|
|
— |
|
|
— |
|
|
2 |
Adjusted Non-GAAP Gross Profit |
$ |
996 |
|
$ |
1,012 |
|
$ |
2,003 |
|
$ |
2,015 |
|
|
|
|
|
|
|
|
||||
(1) Spin-related costs include costs from the separation of Merck & Co., Inc., |
|||||||||||
(2) Manufacturing network related costs include costs from exiting manufacturing and supply agreements with Merck & Co., Inc., |
|||||||||||
|
|
|
|
|
|
|
|||||
|
Three Months Ended |
|
Six Months Ended |
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
GAAP Gross Margin |
|
58.4 % |
|
|
60.2 % |
|
|
58.7 % |
|
|
61.2 % |
Total impact of Non-GAAP adjustments |
|
3.6 % |
|
|
2.7 % |
|
|
3.3 % |
|
|
2.8 % |
Adjusted Non-GAAP Gross Margin |
|
62.0 % |
|
|
62.9 % |
|
|
62.0 % |
|
|
64.0 % |
|
|
|
|
|
|
|
|
||||
|
Three Months Ended |
|
Six Months Ended |
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
GAAP Selling, general and administrative expenses |
$ |
437 |
|
$ |
451 |
|
$ |
868 |
|
$ |
886 |
Adjusted for: |
|
|
|
|
|
|
|
||||
Spin-related costs (1) |
(29) |
|
(44) |
|
(69) |
|
(90) |
||||
Stock-based compensation |
|
(18) |
|
|
(17) |
|
|
(36) |
|
|
(32) |
Other |
|
— |
|
|
— |
|
|
— |
|
|
(1) |
Adjusted Non-GAAP Selling, general and administrative expenses |
$ |
390 |
|
$ |
390 |
|
$ |
763 |
|
$ |
763 |
|
|
|
|
|
|
|
|
||||
(1) Spin-related costs include costs from the separation of Merck & Co., Inc., |
|||||||||||
|
|
|
|
|
|
|
|
||||
|
Three Months Ended |
|
Six Months Ended |
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
|
$ |
116 |
|
$ |
128 |
|
$ |
228 |
|
$ |
257 |
Adjusted for: |
|
|
|
|
|
|
|
||||
Spin-related costs (1) |
(1) |
|
(3) |
|
(3) |
|
(6) |
||||
Stock-based compensation |
|
(5) |
|
|
(4) |
|
|
(9) |
|
|
(7) |
|
$ |
110 |
|
$ |
121 |
|
$ |
216 |
|
$ |
244 |
|
|
|
|
|
|
|
|
||||
(1) Spin-related costs include costs from the separation of Merck & Co., Inc., |
|
|||||||||||
|
|||||||||||
|
|||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
GAAP Reported Net Income |
$ |
195 |
|
$ |
242 |
|
$ |
396 |
|
$ |
419 |
Adjusted for: |
|
|
|
|
|
|
|
||||
Cost of sales adjustments |
|
57 |
|
|
44 |
|
|
107 |
|
|
89 |
Selling, general and administrative adjustments |
|
47 |
|
|
61 |
|
|
105 |
|
|
123 |
Research and development adjustments |
|
6 |
|
|
7 |
|
|
12 |
|
|
13 |
Restructuring |
|
— |
|
|
— |
|
|
23 |
|
|
4 |
Other expense, net |
|
6 |
|
|
4 |
|
|
10 |
|
|
10 |
Tax impact on adjustments above(1) |
|
(22) |
|
|
(22) |
|
|
(49) |
|
|
(46) |
Non-GAAP Adjusted Net Income |
$ |
289 |
|
$ |
336 |
|
$ |
604 |
|
$ |
612 |
|
|
|
|
|
|
|
|
||||
(1) For the three months ended |
|||||||||||
|
|
|
|
|
|
|
|
||||
|
Three Months Ended |
|
Six Months Ended |
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
GAAP Diluted Earnings per Share |
$ |
0.75 |
|
$ |
0.95 |
|
$ |
1.53 |
|
$ |
1.64 |
Total impact of Non-GAAP adjustments |
$ |
0.37 |
|
$ |
0.36 |
|
$ |
0.81 |
|
$ |
0.75 |
Non-GAAP Diluted Earnings per Share |
$ |
1.12 |
|
$ |
1.31 |
|
$ |
2.34 |
|
$ |
2.39 |
TABLE 5 | |||||||||||
|
|||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
Net income |
$ |
195 |
|
$ |
242 |
|
$ |
396 |
|
$ |
419 |
Depreciation (1) |
|
31 |
|
|
28 |
|
|
61 |
|
|
56 |
Amortization |
|
34 |
|
|
30 |
|
|
67 |
|
|
59 |
Interest expense |
|
131 |
|
|
132 |
|
|
262 |
|
|
264 |
Taxes on income |
|
40 |
|
|
12 |
|
|
75 |
|
|
70 |
EBITDA |
$ |
431 |
|
$ |
444 |
|
$ |
861 |
|
$ |
868 |
Restructuring costs |
|
— |
|
|
— |
|
|
23 |
|
|
4 |
Spin-related costs (2) |
|
39 |
|
|
61 |
|
|
88 |
|
|
126 |
Manufacturing network related (3) |
|
15 |
|
|
— |
|
|
25 |
|
|
— |
Other costs |
|
— |
|
|
— |
|
|
— |
|
|
3 |
Stock-based compensation |
|
28 |
|
|
25 |
|
|
54 |
|
|
47 |
Adjusted EBITDA (Non-GAAP) |
$ |
513 |
|
$ |
530 |
|
$ |
1,051 |
|
$ |
1,048 |
Adjusted EBITDA margin (Non-GAAP) |
|
31.9 % |
|
|
33.0 % |
|
|
32.5 % |
|
|
33.3 % |
(1) Excludes accelerated depreciation included in one-time costs. |
(2) Spin-related costs reflect certain costs incurred in connection with activities taken to separate Organon from Merck & Co., Inc., |
(3) Manufacturing network related costs, including exiting of temporary manufacturing and supply agreements with Merck & Co., Inc., |
As the costs described in (1) through (3) above are directly related to the separation of Organon and therefore arise from a one-time event outside of the ordinary course of the company’s operations, the adjustment of these items provides meaningful, supplemental, information that the company believes will enhance an investor's understanding of the company's ongoing operating performance. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240806912375/en/
Media:
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(551) 204-6129
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