OGN - Organon draws bullish views at Raymond James on Humira biosimilar launch

2023-03-16 08:34:23 ET

Raymond James launched its coverage on Organon ( NYSE: OGN ) with an Outperform recommendation citing its potential in the biosimilar space with the upcoming launch of Hadlima, a copycat version of AbbVie's ( ABBV ) blockbuster arthritis therapy Humira.

The analyst Elliot Wilbur highlights the company's prospects in women's health and in the biosimilar market as AbbVie ( ABBV ) faces competition in the U.S. for "the $20.0B biologic representing the largest ever loss of exclusivity event in Biopharma."

With a $33 per share target on OGN, Wilbur projects these two segments to record low-to-mid single-digit revenue growth over the next ten years, offsetting the sales decline in the company's Established Brands portfolio.

Organon ( OGN ), the Merck ( MRK ) spinoff which began trading as a public company in 2021 with a focus on women's health and biosimilars, added $3.9B revenue from its Established Brands segment in 2022, indicating a ~5% YoY decline.

In 2022, when the FDA approved Hadlima as a high-concentration (100 mg/mL) formulation, Organon ( OGN ) and its partner Samsung Bioepis scheduled its launch for on or after July 2023.

Read: Seeking Alpha contributor Gen Alpha urged investors to buy OGN in February, expecting "strong total returns from its current cheap valuation."

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