Organon & Co. reported a decline in financial performance for the first quarter of 2025, with total revenues of $1.513 billion, a decrease of 7% from $1.622 billion in the same period of 2024. The company's net income also fell significantly to $87 million, down from $201 million year-over-year. This resulted in earnings per share of $0.34, compared to $0.78 in the prior year. The decrease in revenue was attributed to unfavorable foreign exchange rates, which negatively impacted sales by approximately $44 million, or 3%.
The company experienced notable changes in its product performance. Sales of Nexplanon, a contraceptive implant, increased by 13% due to heightened demand and favorable pricing in the U.S. market. Conversely, sales of Atozet, a cholesterol-lowering medication, dropped by 42% primarily due to loss of exclusivity in France and Spain. Additionally, the company recognized $6 million in acquired in-process research and development costs related to its exit from an agreement with Centergene, reflecting strategic adjustments in its operations.
Organon has made significant strategic moves, including the acquisition of Dermavant Sciences Ltd. in late 2024, which has expanded its portfolio in dermatology. The company also acquired U.S. rights to Tofidence, a biosimilar to Actemra, from Biogen, with an upfront payment of $51 million expected in July 2025. These acquisitions are part of Organon's strategy to enhance its product offerings and market presence, particularly in women's health and biosimilars.
Operationally, Organon reported a headcount reduction of approximately 6% as part of restructuring initiatives aimed at optimizing its operating model. The company’s total assets increased slightly to $13.156 billion as of March 31, 2025, compared to $13.101 billion at the end of 2024. The company’s cash and cash equivalents stood at $547 million, down from $675 million at the end of the previous year, reflecting cash outflows related to acquisitions and restructuring costs.
Looking ahead, Organon anticipates continued challenges from market conditions, including pricing pressures and competition from generics. The company plans to redirect funds from its recently declared reduced dividend of $0.02 per share towards debt repayment and strategic investments. Management remains focused on enhancing operational efficiencies and leveraging its expanded product portfolio to drive future growth.
About Organon & Co.
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