Organon sales slip 4% as company prepares for $11.7B Sun Pharma merger

Organon (NYSE:OGN) reported a decrease in first-quarter revenue as the company begins its transition toward a planned $11.75 billion merger with Sun Pharmaceutical Industries.

Total revenue for the quarter was $1.46 billion, a 4% decline on an as-reported basis and a 9% drop when excluding the impact of foreign currency.

The revenue contraction was primarily driven by headwinds in the Women’s Health segment, where sales fell 16% as-reported to $389 million.

Specifically, the company’s flagship contraceptive implant, Nexplanon, saw a 21% currency-neutral decline in sales during the period.

These losses were partially offset by a 23% surge in the Biosimilars business, which reached $173 million in revenue, led by strong uptake of its immunology and oncology offerings.

Profitability for the quarter remained stable despite the top-line pressure.

Organon posted net income of $146 million, or $0.55 per diluted share.

On an adjusted non-GAAP basis, earnings per share (EPS) came in at $0.71.

Adjusted EBITDA was $415 million, representing a robust margin of 28.4%, as the company maintained strict control over its operating expenses ahead of the acquisition.

The quarterly report follows the April 26 announcement that Sun Pharma will acquire all outstanding shares of Organon for $14 per share in cash.

The deal, which values Organon at an enterprise value of approximately $11.75 billion, is intended to catapult Sun Pharma into a top-three position in global women’s health and the seventh-largest player in the biosimilars market.

In light of the pending transaction, which is expected to close in early 2027, Organon has taken the step of suspending its financial guidance and will no longer host quarterly earnings conference calls.