OGN - Organon: Merck's Spinoff Has Potential But More Concrete Actions Awaited
- Organon is the spin-off of Merck's women’s health, legacy products, and biosimilars businesses.
- Out of older products that do not have much growth in them, there are some bright spots, like birth control implants.
- Thus, the forecast for 2021 is for revenue to regress further, but not so steeply as in 2020, due to COVID constituting less of a headwind.
- Given the favorable debt metric and lower valuation, the spin-off deserves to be on your observation list.
- After guidelines on objectives, as well as a strategic acquisition, one should be on the watch-out for some more concrete actions during the next earnings call in September.
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Organon: Merck's Spinoff Has Potential But More Concrete Actions Awaited