Organon Cuts 2025 Sales Outlook Despite Earnings Beat
Organon (NYSE:OGN) reported third-quarter adjusted earnings of $1.01 per share on Monday, beating the consensus estimate of 94 cents. The global healthcare company reported quarterly sales of $1.602 billion, beating the Wall Street estimate of $1.56 billion.
Sales increased 1% on an as-reported basis and down 1% excluding the impact of foreign currency (ex-FX).
Women's Health revenue declined 3% to $429 million. Biosimilars revenue increased 19% to $196 million. Established Brands’ revenue increased 1% to $956 million.
Gross margin in the third quarter of 2025 was 53.5% compared with 58.3% in the prior year period. One-time costs associated with optimizing the company's manufacturing and supply network were the most significant driver in the year-over-year decline in reported gross margin.
Adjusted EBITDA margin was 32.3% compared with 29.0% a year ago.
Guidance:
Organon lowered its fiscal sales guidance from $6.275 billion-$6.375 billion to $6.20 billion-$6.25 billion, below the consensus of $6.289 billion.
Vtama Cream Data
On Saturday, Organon presented new data from a pooled sub-analysis of the Phase 3 ADORING 1 and ADORING 2 trials comparing VTAMA cream to vehicle at the 2025 American College of Allergy, Asthma & Immunology Annual Scientific Meeting.
The new data demonstrate that Vtama cream provided an early and consistent response for children aged 2-17 with atopic dermatitis, with or without atopic comorbidities such as asthma, allergic rhinitis, and food allergies.
Early improvements in skin clearance were observed, with significant differences in vIGA-AD response rates as early as week 1 and maintained through week 8 in children with or without atopic comorbidities (with comorbidities: 42.3% with Vtama cream vs. 11.8% with vehicle; without comorbidities: 49.5% vs. 14.8%, respectively).
Improvement in eczema severity was observed as early as week 2 and sustained through week 8 (with comorbidities: 54.5% with Vtama cream vs. 21.8% with vehicle; without comorbidities: 63.1% vs. 20.4%, respectively).
Improvements in patient-reported outcomes were noted as early as week 1 and maintained through week 8.
Clinically meaningful improvements in itching were observed at week 2, based on responder analysis, with continued improvement through week 8 (with comorbidities: 55.6% with Vtama cream vs. 36.3% with vehicle; without comorbidities: 63.3% vs. 29.2%, respectively).
Price Action: OGN stock is up 1.47% at $6.88 at the last check on Monday.
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