Organon & Co. Reports 4% Revenue Growth, Net Income Surge in Q3 2024

Organon & Co. reported a solid financial performance for the third quarter and the first nine months of 2024, with revenues reaching $1,582 million for the three months ended September 30, 2024, a 4% increase from $1,519 million in the same period of 2023. For the nine months, revenues totaled $4,811 million, up 3% from $4,665 million year-over-year. The growth was driven by strong sales of key products, particularly Nexplanon, which saw a 10% increase in quarterly sales to $243 million, and Hadlima, which contributed significantly following its U.S. launch in July 2023.

Gross profit for Q3 2024 was $923 million, a 2% increase from $907 million in Q3 2023. However, gross profit for the nine months decreased slightly to $2,819 million from $2,833 million in the prior year. Net income surged to $359 million for the third quarter, compared to $58 million in Q3 2023, and for the nine months, net income rose to $755 million from $477 million. Basic earnings per share for Q3 2024 were $1.39, up from $0.23 in the previous year, while for the nine months, it increased to $2.94 from $1.87.

The company’s strategic initiatives included entering into a license and supply agreement with Suzhou Centergene Pharmaceuticals for the commercialization of SJ02, a long-acting recombinant human follicle-stimulating hormone, with an upfront payment of $12 million. Additionally, Organon expanded its distribution agreement with Eli Lilly for migraine medications, which included a $50 million upfront payment and recognition of a $220 million intangible asset.

Organon also undertook restructuring activities, reducing its workforce by approximately 5% primarily in research and development, which contributed to a 22% decrease in selling, general, and administrative expenses for Q3 2024. Research and development expenses also fell by 19% due to reduced clinical study activity and lower personnel costs.

As of September 30, 2024, cash and cash equivalents stood at $763 million, an increase from $693 million at the end of 2023. The company’s total assets rose to $12,752 million from $12,058 million, while total stockholders’ equity improved to $493 million from a deficit of $70 million.

Organon’s financial health was further supported by net cash provided by operating activities of $549 million for the nine months, compared to $402 million in the same period of 2023. The company also reported a decrease in interest expenses due to lower rates on refinanced debt.