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Organon & Co (OGN)



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Upturn Advisory Summary
08/28/2025: OGN (1-star) is currently NOT-A-BUY. Pass it for now.
1 Year Target Price $13.17
1 Year Target Price $13.17
0 | Strong Buy |
2 | Buy |
3 | Hold |
2 | Sell |
0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 10.6% | Avg. Invested days 52 | Today’s Advisory PASS |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 2.39B USD | Price to earnings Ratio 3.41 | 1Y Target Price 13.17 |
Price to earnings Ratio 3.41 | 1Y Target Price 13.17 | ||
Volume (30-day avg) 7 | Beta 0.56 | 52 Weeks Range 7.99 - 21.53 | Updated Date 08/29/2025 |
52 Weeks Range 7.99 - 21.53 | Updated Date 08/29/2025 | ||
Dividends yield (FY) 9.35% | Basic EPS (TTM) 2.69 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date 2025-08-05 | When - | Estimate 0.94 | Actual 1 |
Profitability
Profit Margin 11.15% | Operating Margin (TTM) 21.08% |
Management Effectiveness
Return on Assets (TTM) 6.62% | Return on Equity (TTM) 159.64% |
Valuation
Trailing PE 3.41 | Forward PE 5.03 | Enterprise Value 10683484015 | Price to Sales(TTM) 0.38 |
Enterprise Value 10683484015 | Price to Sales(TTM) 0.38 | ||
Enterprise Value to Revenue 1.7 | Enterprise Value to EBITDA 7.13 | Shares Outstanding 259966000 | Shares Floating 258733342 |
Shares Outstanding 259966000 | Shares Floating 258733342 | ||
Percent Insiders 0.24 | Percent Institutions 84.62 |
Upturn AI SWOT
Organon & Co
Company Overview
History and Background
Organon & Co. was formed in 2021 following its spin-off from Merck & Co. (MSD). While a new public entity, Organon has a history spanning nearly a century as a pharmaceutical company. Organon focuses on women's health, biosimilars, and established brands.
Core Business Areas
- Women's Health: Focuses on contraception, fertility, and other women's health products. Includes well-established brands and innovative solutions. Addresses unmet needs in this therapeutic area.
- Biosimilars: Develops and commercializes biosimilar versions of established biologic drugs. This segment offers cost-effective alternatives to branded biologics.
- Established Brands: Comprises a portfolio of well-known, off-patent pharmaceuticals across various therapeutic areas. These products generate stable revenue and cash flow.
Leadership and Structure
Organon is led by a CEO and a senior management team with experience in the pharmaceutical industry. The company has a global organizational structure, with operations in multiple countries. The board of directors provides oversight and guidance.
Top Products and Market Share
Key Offerings
- Nexplanon: A long-acting reversible contraceptive implant. Strong market share in the US contraception market. Competitors include IUDs (e.g., Mirena, Kyleena) and other hormonal contraceptives. Global sales estimated at $628 million for 2023.
- Follistim AQ: A fertility hormone used in assisted reproductive technology (ART). Market share varies by region. Competitors include other fertility hormone products from companies like Merck KGaA. Global sales estimated at $195 million for 2023.
- Renflexis: A biosimilar of Remicade (infliximab), used to treat autoimmune diseases. Competes with Remicade and other biosimilars from companies like Pfizer and Amgen. Global sales were approximately $231 million in 2023.
Market Dynamics
Industry Overview
The pharmaceutical industry is characterized by intense competition, high R&D costs, and stringent regulatory requirements. Growth is driven by innovation, aging populations, and increasing healthcare access. The biosimilars market is expanding rapidly due to patent expirations of blockbuster biologics.
Positioning
Organon is positioned as a global healthcare company focused on women's health, biosimilars, and established brands. The company aims to leverage its existing portfolio and pipeline to drive growth in these key areas. A competitive advantage is the focus on areas with unmet needs. This leads to a market with fewer players.
Total Addressable Market (TAM)
The TAM for women's health, biosimilars, and established brands is estimated to be hundreds of billions of dollars globally. Organon is positioned to capture a significant share of this market through its diversified portfolio and strategic focus.
Upturn SWOT Analysis
Strengths
- Established portfolio of products
- Focus on women's health
- Growing biosimilars business
- Global presence
- Strong cash flow generation
Weaknesses
- Reliance on established brands
- Limited innovative pipeline
- High debt load from spin-off
- Competition from larger pharmaceutical companies
- Exposure to generic erosion
Opportunities
- Expansion in emerging markets
- Acquisitions of complementary businesses
- Development of innovative women's health products
- Increased adoption of biosimilars
- Strategic partnerships
Threats
- Generic competition
- Pricing pressures
- Regulatory changes
- Economic downturns
- Product liability lawsuits
Competitors and Market Share
Key Competitors
- Teva Pharmaceutical Industries (TEVA)
- Viatris (VTRS)
- Pfizer (PFE)
Competitive Landscape
Organon faces competition from larger pharmaceutical companies with greater resources and broader portfolios. However, Organon's focus on women's health and biosimilars provides a competitive niche.
Major Acquisitions
Alydia Health
- Year: 2021
- Acquisition Price (USD millions): 240
- Strategic Rationale: Expanded Organon's women's health portfolio with a focus on postpartum hemorrhage.
Growth Trajectory and Initiatives
Historical Growth: Historical growth has been moderate, driven by established brands and biosimilars. Women's health segment has shown growth. Biosimilars are emerging as a growth factor for the company.
Future Projections: Analysts project moderate revenue growth in the coming years, driven by new product launches and biosimilar expansion. Earnings growth is expected to be stronger as the company deleverages its balance sheet.
Recent Initiatives: Recent strategic initiatives include acquisitions of women's health assets and partnerships to expand the biosimilars pipeline.
Summary
Organon is a relatively new company spun off from Merck, focusing on women's health, biosimilars, and established brands. The company has a strong portfolio of existing products, but faces challenges related to debt and competition. Growth opportunities exist in emerging markets and through strategic acquisitions. Organon's focus on unmet needs in women's health is working well and they need to be careful about increasing debt and erosion of revenues.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Organon Investor Relations
- SEC Filings
- Analyst Reports
- Company Press Releases
Disclaimers:
This analysis is for informational purposes only and does not constitute financial advice. Market data and estimates are subject to change. Investment decisions should be based on individual circumstances and a thorough understanding of the risks involved.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Organon & Co
Exchange NYSE | Headquaters Jersey City, NJ, United States | ||
IPO Launch date 2021-06-02 | CEO & Director Mr. Kevin Ali | ||
Sector Healthcare | Industry Drug Manufacturers - General | Full time employees 10000 | Website https://www.organon.com |
Full time employees 10000 | Website https://www.organon.com |
Organon & Co. develops and delivers health solutions through prescription therapies and medical devices in the United States, Europe, Canada, Japan, rest of the Asia Pacific, Latin America, the Middle East, Russia, Africa, and internationally. The company's women's health portfolio comprises contraception and fertility brands, such as Nexplanon, a long-acting reversible contraceptive; NuvaRing, a monthly vaginal contraceptive ring; Cerazette, Marvelon, and Mercilon, which are daily pills used to prevent pregnancy; Follistim AQ, which is used to promote the development of multiple ovarian follicles in medically assisted reproduction procedures; Elonva, a follicle stimulant; Ganirelix acetate injection, an injectable antagonist; Jada for abnormal postpartum uterine bleeding or hemorrhage; and Xaciato for bacterial vaginosis. Its biosimilars portfolio consists of immunology products, such as Brenzys, Renflexis, and Hadlima; and two oncology products, including Ontruzant and Aybintio. The company also offers cholesterol-modifying medicines under the Zetia, Ezetrol, Vytorin, Inegy, Atozet, Rosuzet, and Zocor brands; Cozaar and Hyzaar for hypertension; respiratory products used to control and prevent asthma-induced symptoms under the Singulair, Dulera, Zenhale, and Asmanex brands, as well as seasonal allergic rhinitis under the Nasonex, Clarinex, and Aerius brands. In addition, it provides dermatology products under the Vtama, Diprosone, and Elocon brand; bone health products under the Fosamax brand; and non-opioid pain management products under the Arcoxia, Diprospan, and Celestone brands, as well as Proscar for symptomatic benign prostatic hyperplasia; and Propecia for male pattern hair loss. The company sells its products to drug wholesalers and retailers, hospitals, clinics, government agencies, health maintenance organizations, pharmacy benefit managers, and other institutions. Organon & Co. was founded in 1923 and is headquartered in Jersey City, New Jersey.

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