Organon (NYSE:OGN) reported second-quarter earnings Tuesday that surpassed analyst expectations and raised its full-year revenue guidance, while making notable strides in reducing debt. The company’s shares jumped 8.58% in pre-market trading following the announcement.
The healthcare firm posted adjusted earnings of $1.00 per share, beating the consensus estimate of $0.94. Revenue reached $1.59 billion, slightly above the $1.56 billion forecast but down 1% year-over-year, both on a reported basis and excluding foreign exchange impacts. The strong market response highlights investor confidence in Organon’s financial results and debt management.
“During the quarter we paid down principal on our long-term debt and began implementing meaningful cost savings, which together set us on a path to achieve net leverage below 4.0x by the end of this year,” said Kevin Ali, Organon’s CEO. “We are right where we want to be with VTAMA, making significant progress on our access objectives, with the overall portfolio compensating well for the loss of exclusivity of Atozet in Europe.”
Women’s Health revenue grew 3% as reported and 2% excluding currency effects, led by a 15% rise in the fertility segment. Biosimilars revenue increased 5% reported and 6% excluding currency impacts, driven primarily by strong performance of Hadlima. Meanwhile, Established Brands revenue declined 3% reported and 4% excluding currency effects, partially offset by gains from Emgality and Vtama.
Organon repaid $345 million of long-term debt during the quarter, including the repurchase and cancellation of $242 million of 5.125% notes due 2031, generating a pre-tax gain of $42 million.
For full-year 2025, Organon raised its revenue guidance to $6.275 billion to $6.375 billion from a prior forecast of $6.125 billion to $6.325 billion, surpassing the analyst consensus of $6.22 billion. The company maintained its adjusted EBITDA margin guidance between 31.0% and 32.0%.
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