US-based Organon (NYSE: OGN) has reported its financial results for the second quarter of 2023, highlighting a robust performance with revenues increasing by 4% year-on-year (YOY) in constant exchange rate terms to USD 1.6 billion. The Women’s Health and Biosimilars units emerged as the strongest growth drivers for the company. Additionally, Organon experienced a positive performance in China, especially in its fertility business.
Women’s Health and Biosimilars Revenue Growth
By business unit, Women’s Health revenues reached USD 438 million, marking a 10% YOY increase, primarily driven by the contraceptive Nexplanon (etonogestrel implant). Biosimilars revenues saw a rise of 15% to USD 135 million, with strong demand in the US for Renflexis (infliximab), although this was partially offset by competitive market conditions in Europe for Ontruzant (trastuzumab).
Upcoming US Launch and Established Brands Performance
Organon’s near-term performance is expected to receive a further boost from the US launch on July 1 of its Humira (adalimumab) biosimilar. Meanwhile, the Established Brands segment remained stable at USD 995 million.
CEO Commentary on China Performance and VBP Impact
CEO Kevin Ali, during the earnings conference call, emphasized the “significant growth” observed in China during Q2, particularly in the fertility business which experienced a post-COVID rebound as patients returned to clinics for treatment. However, there was a negative impact of about USD 25 million from China’s volume-based procurement (VBP) program, following the inclusion of Organon’s cardiovascular product Ezetrol (ezetimibe) in Round 7 of the VBP. Despite this, China market sales reached USD 234 million, representing a 2% increase in constant currency terms.-Fineline Info & Tech
