Organon (NYSE: OGN) has released its financial report for the first quarter of 2023, announcing a 3% year-on-year (YOY) increase in revenues, excluding foreign exchange effects, amounting to USD 1.54 billion. This growth was driven by a 3% increase in Women’s Health revenues, a 20% increase in Biosimilars, and a 1% increase in Established brands over the three-month period.
Key Product Performance and Regional Highlights
Organon highlighted the performance of its birth control brands Marvelon (ethinylestradiol, desogestrel) and Mercilon (ethinylestradiol, desogestrel), which benefited from the company’s re-acquisition of full rights in Southeast Asia and China during 2022. CEO Kevin Ali reported a 65% demand growth for these drugs in China during the first quarter. However, COVID disruptions in China impacted the firm’s fertility business, particularly sales of Follistim AQ (follitropin beta injection).
Biosimilars and Market Presence
Organon’s key biosimilars, Renflexis (infliximab), Brenzys (etanercept), and Ontruzant (trastuzumab), are significant contributors in the US, European, and Latin American markets. Despite a 5% decline in the China market in absolute terms, the company reported a 3% growth in constant currency terms to USD 225 million. China remains a strategic market for Organon, with CEO Ali forecasting local market growth to reach the “high single digit to low double-digit range” during 2023.
Challenges and Strategic Outlook
Several key products have faced price reductions due to the national volume-based procurement (VBP) policy in China, including Zetia (ezetimibe), a drug for high cholesterol that was impacted from November 2022. CEO Ali noted that Organon’s fertility business began to see rapid recovery during February and March in China, indicating a positive outlook for the year.
Geographical Sales Breakdown
The financial report also detailed Organon’s Q1 sales by geography, showing varied growth rates across regions, with the Asia Pacific and Japan region experiencing a 12% increase, Latin America, Middle East, Russia, and Africa reporting a 3% growth, and Other regions showing a 16% increase.-Fineline Info & Tech
