Regular dividend to remain primary capital
allocation priority
- For full year 2023, the company expects revenue and Adjusted
EBITDA margin to be within the ranges provided on November 2,
2023
- For full year 2023 the company expects free cash flow before
one-time spin-related costs to be above previously provided
range
- For full year 2024, the company expects revenue to grow in the
low-single-digit range on a constant currency basis, and to achieve
stable to improving Adjusted EBITDA margin
- The company’s annual dividend of $1.12 per share remains its
primary capital allocation priority, followed by a balance of
discretionary debt repayment and opportunistic business
development
Organon (NYSE: OGN) today affirmed prior revenue and Adjusted
EBITDA guidance, indicated that free cash flow before one-time
spin-related costs is expected to be above the high end of the
previous guidance range, and provided high-level financial
objectives for 2024. Kevin Ali, Organon’s Chief Executive Officer
and Matthew Walsh, Organon’s Chief Financial Officer, will discuss
these updates as part of a webcast presentation at the 42nd Annual
J.P. Morgan Healthcare Conference to be held tomorrow, January 9,
2024, at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time.
Updates to 2023 Financial Guidance
Previously Provided on November 2, 2023
For full year 2023, the company is affirming prior revenue and
Adjusted EBITDA margin guidance in the ranges of $6.15 billion to
$6.25 billion and 30.5% to 31.5%, respectively. Full year 2023 free
cash flow before one-time spin-related costs is expected to be
above the high end of the previously provided range of $700 million
to $800 million.
The information presented above reflects the company’s
preliminary estimates subject to the completion of the company’s
financial closing procedures and any adjustments that may result
from the completion of the quarterly and annual review of the
company’s consolidated financial statements. Organon will report
its full year 2023 results and more fulsome 2024 outlook on
February 15, 2024.
Preliminary Full Year 2024
Outlook
For full year 2024, Organon expects constant currency revenue
growth in the low-single-digit range and stable to improving
Adjusted EBITDA margin, which it expects to achieve, in part,
through operating expense management.
Capital Allocation
The company’s annual dividend of $1.12 per share remains its
primary capital allocation priority. Organon has generated, and
expects to continue to generate, more than ample cash flow to
service its dividend. The company expects to continue to use its
remaining free cash flow to achieve its additional capital
allocation objectives, which include discretionary debt repayment
and the acquisition of assets that enhance Organon’s growth
profile.
Webcast Information
Investors, analysts, members of the media and the general public
are invited to listen to a live audio webcast of the company’s
presentation at the J.P. Morgan Healthcare conference on January
9th at:
https://jpmorgan.metameetings.net/events/healthcare24/sessions/49500-organon/webcast?gpu_only=true&kiosk=true.
About Organon
Organon is a global healthcare company formed to focus on
improving the health of women throughout their lives. Organon
offers more than 60 medicines and products in women’s health in
addition to a growing biosimilars business and a large franchise of
established medicines across a range of therapeutic areas.
Organon’s existing products produce strong cash flows that support
investments in innovation and future growth opportunities in
women’s health and biosimilars. In addition, Organon is pursuing
opportunities to collaborate with biopharmaceutical innovators
looking to commercialize their products by leveraging its scale and
presence in fast growing international markets.
Organon has a global footprint with significant scale and
geographic reach, world-class commercial capabilities, and
approximately 10,000 employees with headquarters located in Jersey
City, New Jersey.
For more information, visit http://www.organon.com and connect
with us on LinkedIn, Instagram, X (formerly known as Twitter) and
Facebook.
Cautionary Note Regarding Non-GAAP
Financial Measures
This press release contains “non-GAAP financial measures,” which
are financial measures that either exclude or include amounts that
are correspondingly not excluded or included in the most directly
comparable measures calculated and presented in accordance with
U.S. generally accepted accounting principles (“GAAP”).
Specifically, the company makes use of the non-GAAP financial
measures Adjusted EBITDA, Adjusted EBITDA margin, and free cash
flow before one-time spin-related costs which are not recognized
terms under GAAP and are presented only as a supplement to the
company’s GAAP financial statements. This press release also
provides certain measures that exclude the impact of foreign
exchange. We calculate foreign exchange by converting our
current-period local currency financial results using the prior
period average currency rates and comparing these adjusted amounts
to our current-period results. The company believes that these
non-GAAP financial measures help to enhance an understanding of the
company’s financial performance. However, the presentation of these
measures has limitations as an analytical tool and should not be
considered in isolation, or as a substitute for the company’s
results as reported under GAAP. Because not all companies use
identical calculations, the presentations of these non-GAAP
measures may not be comparable to other similarly titled measures
of other companies.
The company uses non-GAAP financial measures in its operational
and financial decision making and believes that it is useful to
exclude certain items in order to focus on what it regards to be a
more meaningful representation of the underlying operating
performance of the business.
Cautionary Note Regarding
Forward-Looking Statements
Except for historical information, this press release includes
“forward-looking statements” within the meaning of the safe harbor
provisions of the U.S. Private Securities Litigation Reform Act of
1995, including, but not limited to, statements about management’s
expectations about Organon’s future financial performance and
prospects, including preliminary full-year 2023 financial results,
full-year 2024 guidance, and future cash flows and capital
requirements, as well as statements concerning Organon’s capital
allocation and expense management plans, future dividend payments,
, and ability to acquire assets that enhance Organon’s growth
profile. Forward-looking statements may be identified by words such
as “believes,” “expects,” “will,” “would,” “potentially,”
“foresees,” “intends,” “anticipates,” “plans,” “seeks,”
“estimates,” “preliminary” or words of similar meaning. These
statements are based upon the current beliefs and expectations of
the company’s management and are subject to significant risks and
uncertainties. If underlying assumptions prove inaccurate or risks
or uncertainties materialize, actual results may differ materially
from those set forth in the forward-looking statements.
Risks and uncertainties include, but are not limited to, an
inability to fully execute on our product development and
commercialization plans within the United States or
internationally; an inability to adapt to the industry-wide trend
toward highly discounted channels; changes in tax laws or other tax
guidance which could adversely affect our cash tax liability,
effective tax rates, and results of operations and lead to greater
audit scrutiny; an inability to execute on our business development
strategy or realize the benefits of our planned acquisitions;
efficacy, safety, or other quality concerns with respect to
marketed products, including market actions such as recalls,
withdrawals, or declining sales; political and social pressures, or
regulatory developments, that adversely impact demand for,
availability of, or patient access to contraception or fertility
products; general economic factors, including recessionary
pressures, interest rate and currency exchange rate fluctuations;
general industry conditions and competition; the impact of
pharmaceutical industry regulation and health care legislation in
the United States and internationally; global trends toward health
care cost containment; technological advances; new products and
patents attained by competitors; challenges inherent in new product
development, including obtaining regulatory approval; the company’s
ability to accurately predict its future financial results and
performance; developments that result in changes to Organon’s
capital allocation priorities; manufacturing difficulties or
delays; financial instability of international economies and
sovereign risk; difficulties developing and sustaining
relationships with commercial counterparties; dependence on the
effectiveness of the company’s patents and other protections for
innovative products; and the exposure to litigation, including
patent litigation, and/or regulatory actions.
The company undertakes no obligation to publicly update any
forward-looking statement, whether as a result of new information,
future events or otherwise. Additional factors that could cause
results to differ materially from those described in the
forward-looking statements can be found in the company’s filings
with the Securities and Exchange Commission ("SEC"), including the
company’s Annual Report on Form 10-K for the year ended December
31, 2022 and subsequent SEC filings, available at the SEC’s
Internet site (www.sec.gov).
Cautionary Note Regarding Preliminary
Financial Information
The 2023 full year results set forth in this press release are
still preliminary estimates and subject to Organon’s detailed
quarter and year-end close procedures. Organon’s consolidated
financial statements as of, and for the three and twelve months
ended December 31, 2023, are not yet available. Accordingly, the
information presented in this press release reflects the company’s
preliminary estimates subject to the completion of the company’s
financial closing procedures and any adjustments that may result
from the completion of the quarterly and annual review of the
company’s consolidated financial statements. As a result, these
preliminary estimates may differ from the actual results that will
be reflected in the company’s consolidated financial statements for
2023 when they are completed and publicly disclosed. These
preliminary estimates may change, and those changes may be
material. The company’s expectations with respect to its unaudited
results for the period discussed above are based on management
estimates. The company’s independent registered public accounting
firm has not audited, reviewed or performed any procedures with
respect to these preliminary estimates and, accordingly, does not
express an opinion or any other form of assurance about them.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240108542270/en/
Media Contacts:
Felicia Bisaro (646) 703-1807 Kate Vossen (732) 675-8448
Investor Contacts:
Jennifer Halchak (201) 275-2711 Alex Arzeno (203) 550-3972
Organon (NYSE:OGN)
Historical Stock Chart
Von Apr 2024 bis Mai 2024
Organon (NYSE:OGN)
Historical Stock Chart
Von Mai 2023 bis Mai 2024