Organon & Co.
04/30/2026 | Press release | Distributed by Public on 04/30/2026 05:50
Organon Reports Results for the First Quarter Ended March 31, 2026 (Form 8-K)
Organon Reports Results for the First Quarter Ended March 31, 2026
| · | First quarter 2026 revenue of $1.460 billion, down 4% as-reported and down 9% excluding the impact of foreign currency. |
| · | First quarter 2026 diluted earnings per share of $0.55 and non-GAAP Adjusted diluted earnings per share of $0.71. |
| · | First quarter 2026 net income of $146 million and Adjusted EBITDA (non-GAAP) of $415 million, representing an Adjusted EBITDA margin of 28.4%. |
| · | On April 26, 2026, the company announced its pending merger into Sun Pharmaceutical Industries Limited (together with its subsidiaries and/or associated companies, "Sun Pharma") in an all-cash transaction (the "merger"). The merger is expected to close in early 2027, subject to customary closing conditions, including receipt of required regulatory approvals and approval by Organon stockholders. |
| · | In light of the pending merger, Organon will not be providing financial guidance or hosting quarterly earnings calls. |
Jersey City, N.J., April 30, 2026 - Organon (NYSE: OGN) today announced its results for the first quarter ended March 31, 2026.
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First Quarter 2026 Revenue
| in $ millions | Q1 2026 | Q1 2025 | VPY | VPY ex-FX | ||||||||||||
| Women's Health | $ | 389 | $ | 463 | (16 | )% | (19 | )% | ||||||||
| General Medicines | ||||||||||||||||
| Biosimilars | 173 | 141 | 23 | % | 21 | % | ||||||||||
| Established Brands | 880 | 887 | (1 | )% | (7 | )% | ||||||||||
| Other (1) | 18 | 22 | (15 | )% | (21 | )% | ||||||||||
| Revenue | $ | 1,460 | $ | 1,513 | (4 | )% | (9 | )% | ||||||||
Totals may not foot due to rounding and percentages are computed using unrounded amounts.
(1) Other includes manufacturing sales to third parties.
For the first quarter of 2026, total revenue was $1.460 billion, down 4% on an as-reported basis and down 9% excluding the impact of foreign currency (ex-FX), compared with the first quarter of 2025.
Women's Health revenue declined 16% as-reported and declined 19% ex-FX in the first quarter of 2026, compared with the first quarter of 2025.
| - | Sales of Nexplanon® (etonogestrel implant) decreased 21% ex-FX in the first quarter compared with the first quarter of 2025. In the U.S., sales of Nexplanon declined 28% primarily due to both decreased physician demand following the five-year label approval which as expected, has delayed reinsertions; and continued uncertainty around federal funding. Outside of the U.S., Nexplanon sales declined 4% ex-FX, due to the timing of shipments in selective emerging markets, partially offset by increased demand and access in Brazil. |
| - | Sales of oral contraceptives MarvelonTM (desogestrel and ethinyl estradiol pill) and MercilonTM (desogestrel and ethinyl estradiol pill) declined 36% ex-FX in the first quarter of 2026 primarily due to decreased demand and market contraction in China and the timing of shipments in Asia Pacific. |
| - | Global Fertility revenue was down 9% ex-FX as a result of competition-driven price reductions in the U.S. partially offset by modest market growth in China. |
| - | In January of 2026 the company completed the sale of the Jada® system to Laborie. |
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Biosimilars revenue increased 23% as-reported and 21% ex-FX in the first quarter of 2026, compared with the first quarter of 2025, primarily due to the strong performance of Hadlima® (adalimumab-bwwd) associated with stronger demand in the U.S., and increased demand in Puerto Rico. Biosimilars also benefitted from contribution from new assets, Bildyos® (denosumab-nxxp) and Bilprevda® (denosumab-nxxp) which were approved by the U.S. Food and Drug Administration ("FDA") in the third quarter of 2025, and Tofidence® (tocilizumab-bavi), which the company acquired in the second quarter of 2025.
Established Brands revenue declined 1% as-reported and declined 7% ex-FX in the first quarter of 2026. Revenue contribution from Emgality®(1) (galcanezumab-gnlm) partially offset a decline in the respiratory portfolio, which was driven by pricing pressure, as well as volume declines related to the adoption of revised medical guidelines that deprioritize the use of montelukast, including Singulair® (montelukast sodium), in various international markets, most recently, in China. Global sales of Dulera® (mometasone furoate and formoterol fumarate dihydrate) also declined in the first quarter of 2026 primarily due to pricing pressure and decreased demand in the U.S. VTAMA® (tapinarof) grew modestly in the first quarter of 2026 compared with the first quarter of 2025.
(1) Organon acquired certain European licensing and distribution rights to Emgality from Eli Lilly and Company ("Eli Lilly") beginning in early 2024. Emgality is a registered trademark of Eli Lilly in the European Union and other countries (used under license).
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First Quarter 2026 Profitability
| in $ millions, except per share amounts | Q1 2026 | Q1 2025 | VPY | |||||||||
| Revenues | $ | 1,460 | $ | 1,513 | (4 | )% | ||||||
| Cost of sales | 677 | 672 | 1 | % | ||||||||
| Gross profit | 783 | 841 | (7 | )% | ||||||||
| Non-GAAP Adjusted gross profit (1) | 861 | 934 | (8 | )% | ||||||||
| Net income | 146 | 87 | 68 | % | ||||||||
| Non-GAAP Adjusted net income (1) | 188 | 265 | (29 | )% | ||||||||
| Diluted Earnings per Share (EPS) | 0.55 | 0.33 | 67 | % | ||||||||
| Non-GAAP Adjusted diluted EPS (1) | 0.71 | 1.02 | (30 | )% | ||||||||
| Acquired in-process research & development (IPR&D) and milestones | - | 6 | NM | |||||||||
| Adjusted EBITDA (Non-GAAP) (1) | 415 | 484 | (14 | )% | ||||||||
| Q1 2026 | Q1 2025 | |||||||||||
| Gross margin | 53.6 | % | 55.6 | % | ||||||||
| Non-GAAP Adjusted gross margin (1) | 59.0 | % | 61.7 | % | ||||||||
| Adjusted EBITDA margin (Non-GAAP) (1, 2) | 28.4 | % | 32.0 | % |
| (1) | See Tables 4 and 5 for reconciliations of GAAP to non-GAAP financial measures. |
Reported gross margin in the first quarter of 2026 was 53.6% compared with 55.6% in the prior year period. Non-GAAP Adjusted gross margin was 59.0% in the first quarter of 2026, compared to 61.7% in the first quarter of 2025. Unfavorable pricing and product mix as well as foreign exchange rates were notable drivers in the decline of both reported gross margin and non-GAAP Adjusted gross margin.
Net income for the first quarter of 2026 was $146 million, or $0.55 per diluted share, compared with net income of $87 million, or $0.33 per diluted share, in the first quarter of 2025. For the first quarter of 2026, non-GAAP Adjusted net income was $188 million, or $0.71 per diluted share, compared with $265 million, or $1.02 per diluted share, for the first quarter of 2025.
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Non-GAAP Adjusted EBITDA margin was 28.4% in the first quarter of 2026 compared with 32.0% in the first quarter of 2025. The year-over-year decline was primarily driven by a decrease in Adjusted Gross Margin.
Capital Allocation
Today, Organon's Board of Directors declared a quarterly dividend of $0.02 for each issued and outstanding share of the company's common stock. The dividend is payable on June 11, 2026, to stockholders of record at the close of business on May 11, 2026.
As of March 31, 2026, cash and cash equivalents were $1.12 billion, and debt was $8.57 billion.
Webcast Information
As is customary during the pendency of an acquisition, Organon has suspended its quarterly earnings calls and will not host a conference call in conjunction with today's first quarter earnings release.
About Organon
Organon (NYSE: OGN) is a global healthcare company with a mission to deliver impactful medicines and solutions for a healthier every day. With a portfolio of over 70 products across Women's Health and General Medicines, which includes biosimilars, Organon focuses on addressing health needs that uniquely, disproportionately or differently affect women, while expanding access to essential treatments in over 140 markets.
Headquartered in Jersey City, New Jersey, Organon is committed to advancing access, affordability, and innovation in healthcare. Learn more at http://www.organon.com and follow us on LinkedIn, Instagram, X,YouTube, TikTok and Facebook.
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Cautionary Note Regarding Non-GAAP Financial Measures
Organon & Co. published this content on April 30, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on April 30, 2026 at 11:51 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]