OGN - Organon narrows 2021 guidance; agrees to acquire Forendo Pharma for $954M

Organon (NYSE:OGN) is trading flat in the pre-market after the company reported Q3 2021 financials exceeding analyst expectations. Merck spinoff focused on women’s health and biosimilars also narrowed its full-year guidance. For the quarter, the topline dipped ~1% YoY to $1.6B after ~5% YoY growth recorded in the previous quarter. The contraction was led by established brands which brought ~$1.0B in sales posting a ~6% YoY decline. Meanwhile, women’s health and biosimilars recorded $381M and $140M in sales with a ~10% YoY decline and ~41% YoY growth, respectively. Revenue from the U.S. dropped ~7% YoY to $346M. China and Europe/ Canada brought $252M and $410M sales, posting ~12% YoY growth and ~4% YoY decline, respectively. Meanwhile, the gross margin narrowed to ~62% from ~63% in the previous quarter and ~67% in Q3 2020. However, the net income contracted ~42% YoY to $433M even as SG&A expenses climbed ~21% YoY to $388M.

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Organon narrows 2021 guidance; agrees to acquire Forendo Pharma for $954M