Organon Reports $6.4 Billion Revenue with 2% Growth, Net Income Decline in 2024

Organon & Co. reported a total revenue of $6.4 billion for the fiscal year ending December 31, 2024, marking a 2% increase from $6.3 billion in 2023. The company's net income for the year was $864 million, or $3.33 per diluted share, compared to $1.02 billion, or $3.99 per diluted share, in the previous year. The decline in net income was attributed to increased costs in sales and marketing, research and development, and higher interest expenses, which totaled $520 million for 2024, down slightly from $527 million in 2023. The gross profit for the year was $3.7 billion, a decrease of 1% from $3.75 billion in 2023, primarily due to unfavorable pricing and increased material costs.

Organon experienced notable changes in its product portfolio, particularly in women's health and biosimilars. The women's health segment generated $1.8 billion in revenue, up from $1.7 billion in 2023, driven by strong sales of Nexplanon, which saw a 16% increase in demand. However, sales of NuvaRing declined by 35% due to ongoing generic competition. The biosimilars segment also showed growth, with revenues rising to $662 million from $593 million, largely due to the successful launch of Hadlima in the United States in July 2023. The established brands segment remained stable, contributing $3.8 billion to total revenues.

Strategically, Organon expanded its portfolio through several acquisitions and licensing agreements in 2024. The company acquired Dermavant Sciences for $175 million, which included a $75 million milestone payment upon regulatory approval of Vtama for atopic dermatitis. Additionally, Organon entered into a licensing agreement with Centergene for the commercialization rights to SJ02 in China, and expanded its distribution agreement with Eli Lilly for Emgality in multiple new markets. These strategic moves are expected to enhance Organon's market presence and product offerings, particularly in women's health and dermatology.

Operationally, Organon reported a workforce of over 10,000 employees, with approximately 4,000 focused on commercialization activities. The company operates six manufacturing facilities across various countries, including Belgium, Brazil, and the United Kingdom, enabling it to distribute products to over 140 countries. The company also noted that approximately 75% of its revenues were generated outside the United States, highlighting its global reach. Looking ahead, Organon anticipates continued growth in its women's health and biosimilars segments, although it remains cautious about pricing pressures and competition in the pharmaceutical market.

In its outlook, Organon emphasized the importance of maintaining its competitive edge through innovation and strategic partnerships. The company plans to continue investing in research and development, particularly in areas that address women's health needs. However, it acknowledged potential challenges, including regulatory changes and market dynamics that could impact its financial performance. Overall, Organon aims to leverage its diverse product portfolio and strategic acquisitions to drive future growth and enhance shareholder value.