Q2 2025 Organon & Co Earnings Call Transcript
Key Points
- Organon & Co (OGN) reported strong adjusted EBITDA of $522 million for the quarter, representing a 32.7% margin.
- The company's fertility business grew 15% at constant currency, driven by increased demand and favorable comparisons.
- Organon & Co (OGN) repaid approximately $350 million of principal on long-term debt, aiming to achieve net leverage below 4 times by year-end.
- The biosimilars segment performed better than expected, with Hadlima generating almost $100 million, up 68% compared to the prior year.
- VTAMA showed strong performance with revenue of $31 million, up 70% year-over-year, and significant improvements in access objectives.
- Revenue for the second quarter was $1.6 billion, down 1% at constant currency, impacted by the loss of exclusivity of Atozet in the EU.
- Sales of Nexplanon declined 1% in constant currency, with a 5% decline in the US due to constrained funding for contraceptive products.
- Pricing pressure was noted, particularly from the loss of exclusivity of Atozet and certain mature products in the US.
- Adjusted gross margin decreased slightly to 61.7% from 62% in the previous year, primarily due to price impacts.
- The company faces potential exposure to tariffs, particularly from the EU, which could impact future financial performance.
Hello, and welcome to the Organon second quarter 2025 earnings call and webcast. (Operator Instructions)
I would now like to turn the conference over to Jennifer Halchak, Vice President, Investor Relations. You may begin.
Thank you, operator, and good morning, everyone. Thank you for joining Organon's second quarter earnings call. With me today are Kevin Ali, Organon's Chief Executive Officer; and Matt Walsh, our Chief Financial Officer; Juan Camilo Ferreira, Organon's Head of R&D, will also be joining for the Q&A portion of this call.
Today, we will be referencing a presentation that will be visible during this call for those of you on our webcast. This presentation will also be available following this call on the Events and Presentations section of our Organon Investor Relations website at www.organon.com. Before we begin, I would like to caution listeners that certain information
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