Organon & (OGN) - 2025 Q1 - Quarterly Report

Sales Performance - Worldwide sales for the three months ended March 31, 2025, were $1.5 billion, a decrease of 7% compared to 2024, negatively impacted by approximately 3% or$ 44 million due to unfavorable foreign exchange rates [98]. - Sales in the United States increased by 11% to $412 million for the three months ended March 31, 2025, compared to$ 371 million in 2024 [98]. - International sales decreased by 12% to $1.1 billion for the three months ended March 31, 2025, compared to$ 1.25 billion in 2024 [98]. - Nexplanon sales increased by 13% to $248 million for the three months ended March 31, 2025, driven by increased demand and favorable pricing in the United States [102][103]. - NuvaRing sales declined by 43% to$ 22 million for the three months ended March 31, 2025, due to ongoing generic competition and increased government discount rates in the United States [104]. - Follistim AQ sales increased by 49% to $69 million for the three months ended March 31, 2025, due to a one-time buy-in and favorable discount rates in the United States [106]. - Hadlima sales reached$ 47 million during the three months ended March 31, 2025, reflecting continued ramp-up since its July 2023 launch in the United States [108][109]. - Atozet's loss of exclusivity negatively impacted sales by approximately $63 million during the three months ended March 31, 2025 [99]. - Ontruzant sales declined 54% to normalized levels in Brazil and lower demand in the U.S. for the three months ended March 31, 2025 [110]. - Brenzys sales decreased 39% due to the timing of international tenders in Brazil for the same period [110]. - Atozet sales fell 42% primarily due to loss of exclusivity in France and Spain, with expectations of continued decline in 2025 [112]. - Combined sales of Zetia and Vytorin decreased 4%, driven by demand decrease and pricing pressure in international markets [113]. - Cozaar and Hyzaar sales declined 18% due to decreased demand in China and Japan, along with mandatory price reductions in Japan [114]. - Singulair sales decreased 24% due to lower respiratory infections in China and reduced demand in Japan [115]. Financial Overview - Gross profit decreased 12% to$ 841 million for the three months ended March 31, 2025, impacted by unfavorable pricing and decreased sales [120]. - Research and development expenses decreased 14% to $96 million, primarily due to reduced clinical study activity [124]. - Restructuring costs increased to$ 86 million, with expected annual savings of approximately $200 million from cost-saving initiatives [126]. - Cash and cash equivalents as of March 31, 2025, were$ 547 million, with working capital increasing to $1.76 billion [131][132]. Market and Risk Management - No changes to market risk were reported for the quarter ended March 31, 2025 [142]. - For detailed market risk exposure, refer to the Annual Report on Form 10-K for the year ended December 31, 2024 [142]. - Recently issued accounting standards are discussed in Note 2 of the Condensed Consolidated Financial Statements [141]. Corporate Developments - The acquisition of Tofidence from Biogen includes an upfront payment of$ 51 million and potential milestone payments of up to $45 million based on net sales [96].