Shares of Organon (NYSE: OGN) plunged by 27% during regular trading on Thursday, reaching a new 52-week low of $9.25. This sharp decline came after the women’s health company reported first-quarter earnings that beat analyst estimates, but missed on revenue and provided a disappointing outlook.
The New Jersey-based pharmaceutical firm reported adjusted earnings per share (EPS) of $1.02, well ahead of the consensus estimate of $0.91. However, revenue totaled $1.51 billion, missing the forecast of $1.55 billion and down 7% year-over-year (YoY), or 4% at constant currency.
Organon also provided its full-year 2025 revenue guidance, which remained unchanged at $6.125 billion to $6.325 billion. However, the midpoint of this guidance was slightly below the consensus estimate of $6.292 billion. Additionally, the company expects to generate over $900 million in free cash flow before one-time costs in 2025.
CEO Kevin Ali said,
“We have reset our capital allocation priorities to accelerate progress towards deleveraging, enabling a path to achieve a net leverage ratio of below 4.0x by year-end.”
On a positive note, the company confirmed that key growth drivers, Nexplanon and Vtama, are on track to meet 2025 revenue targets. Vtama is expected to generate $150 million in revenue for the full year, while Nexplanon showed double-digit growth in the first quarter.
In addition, Organon introduced a new annual dividend rate of $0.08 per share as part of its efforts to prioritize deleveraging.
The company reported net income of $87 million for the first quarter and an adjusted EBITDA of $484 million, representing an adjusted EBITDA margin of 32.0%.
Despite the revenue miss and subdued guidance, Organon maintained its full-year 2025 adjusted EBITDA margin outlook.
As of the latest update, Organon (NYSE: OGN) stock is up 2.22%, trading at $9.66 pre-market on Friday.
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