Organon & Co. Reports Q2 2025 Revenue of $1.594 Billion, Net Income Declines

Organon & Co. reported its financial results for the second quarter of 2025, revealing a total revenue of $1.594 billion, a slight decrease of 1% compared to $1.607 billion in the same period last year. For the first half of 2025, the company generated revenues of $3.107 billion, down 4% from $3.229 billion in the first half of 2024. The decline in revenue was attributed to various factors, including the loss of exclusivity for certain products and unfavorable pricing pressures in international markets. Net income for the second quarter was $145 million, down from $195 million in the prior year, resulting in diluted earnings per share of $0.56, compared to $0.75 a year earlier.

The company experienced notable changes in its operational metrics. Cost of sales increased by 8% to $720 million for the second quarter, leading to a gross profit of $874 million, which was a 7% decrease from the previous year. Selling, general, and administrative expenses rose by 4% to $453 million, while research and development expenses decreased by 18% to $95 million. The company also incurred restructuring costs of $2 million in the second quarter, part of a broader initiative that has seen a 6% reduction in headcount aimed at optimizing operations.

Strategically, Organon has made significant acquisitions, including the purchase of Dermavant Sciences Ltd. in late 2024, which expanded its portfolio in immuno-dermatology. The company also acquired the rights to Tofidence, a biosimilar to Actemra, from Biogen, with an upfront payment of $51 million and potential future milestone payments. These acquisitions are expected to enhance product offerings and drive future revenue growth. Additionally, the company has exited its agreement with Centergene, recognizing a $6 million expense related to this decision.

Geographically, Organon reported varied performance across its markets. U.S. sales increased by 7% to $414 million, while international sales decreased by 3% to $1.180 billion. The company noted that the performance of key products such as Vtama and Hadlima contributed positively to U.S. sales, while products like Atozet and Singulair faced challenges due to competitive pressures and pricing issues. The company’s total cash and cash equivalents stood at $599 million as of June 30, 2025, reflecting a decrease from $675 million at the end of 2024.

Looking ahead, Organon anticipates continued challenges from market conditions, including pricing pressures and competition from generics. The company is focused on adapting its business strategies to navigate these challenges while aiming to leverage its recent acquisitions to bolster growth. Management remains optimistic about the potential for new product launches and the ongoing optimization of its operational model to enhance efficiency and profitability.