Organon Q4 sales, profit miss estimates on women's health, respiratory products decline

Overview

• Healthcare firm's Q4 revenue fell 5%, missing analyst expectations

• Adjusted EPS for Q4 missed analyst expectations, declining 30% yr/yr

• Company reported a net loss of $205 mln due to goodwill impairment

Outlook

• Organon expects full-year 2026 revenue of approximately $6.2 bln

• Company anticipates 2026 Adjusted EBITDA of approximately $1.9 bln

• Organon sees flat constant currency revenue growth for 2026

Result Drivers

• WOMEN'S HEALTH DECLINE - Revenue fell 15% due to changes in U.S. wholesaler practices, access restrictions, and increased rebates

• BIOSIMILARS GROWTH - Revenue rose 11% driven by Hadlima and new product contributions

• ESTABLISHED BRANDS PRESSURE - Revenue declined 2% due to pricing pressure and volume declines in respiratory products

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "hold" and 4 "sell" or "strong sell"

• The average consensus recommendation for the pharmaceuticals peer group is "buy."

• Wall Street's median 12-month price target for Organon & Co is $9.00, about 17% above its February 11 closing price of $7.69

• The stock recently traded at 2 times the next 12-month earnings vs. a P/E of 2 three months ago

Press Release: ID:nBw7QXN1Ha

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