In 2025, Organon delivered $6.2 billion in revenue and $1.9 billion of adjusted EBITDA. The biosimilar franchise performed better than expected, with strong performances in Hadlima, Vtama, Emgality, and the fertility business. The FDA approved an sNDA to extend the duration of Nexplanon from 3 to 5 years. Organon made decisions to lower the dividend payout ratio, divest the Jada system, and reduce debt. In 2026, Organon expects revenue and adjusted EBITDA to be about $6.2 billion and $1.9 billion respectively, with flat revenue compared to 2025. Nexplanon sales decreased due to various headwinds, including policy-related changes in the U.S. and a shift to specialty pharmacy claims. The fertility business declined in China but grew in the U.S. and Latin America. In 2026, Organon expects fertility to be a challenge due to increased competition in the U.S. The Jada system generated $74 million in revenue in 2025, but was divested in January 2026, resulting in a 120 basis point revenue decrease. Biosimilars, such as Hadlima and new denosumab biosimilars, saw growth in 2025. Established brands revenue declined by 5% in 2025, but is expected to return to flat performance in 2026. Revenue in the fourth quarter of 2025 decreased by 8% due to loss of exclusivity and pricing pressures. Overall, volume grew by 3% in 2025, driven by Vtama and Emgality. Adjusted gross margin for the full year 2025 was 60.1%, down from 61.6% in 2024, primarily due to pricing pressure. Adjusted EBITDA margin for the full year 2025 was 30.7%, consistent with the prior year. In the fourth quarter of 2025, the company experienced a net loss of $205 million, compared to a net income of $109 million in the same period in 2024. This loss includes a noncash goodwill impairment of $301 million. For the full year 2025, non-GAAP adjusted net income was $165 million, a decrease from the previous year. Free cash flow for 2025 remained consistent with 2024, at $960 million before one-time costs. The company expects an increase in CapEx and net working capital consumption in 2026, resulting in similar free cash flow to the previous two years.

In 2025, the company paid about $170 million in contractual milestones and made $66 million in upfront payments. Net leverage at year-end was approximately 4.3x, with a goal to reduce it below 4x by the end of 2026. Revenue for 2026 is expected to be around $6.2 billion, with adjusted gross margin estimated to be slightly lower than the previous year. Operating expenses are expected to be spread more evenly throughout the year, with the first quarter likely to have the lowest margin. The company’s main objective for 2026 is to maintain performance consistent with the previous year. Organon is committed to managing expenses and capital deployment to reduce debt. During a Q&A session, they declined to comment on a specific issue. Questions were raised about a limited scope of investigations and a new biosimilar purchasing issue. Organon believes biosimilar policy changes will have an incremental impact. They predict flat Nexplanon sales in 2026, with growth ex-U.S. due to improved access in Latin America. They expect an inflection point in U.S. sales due to a label change and channel issues. $275 million in cost savings will benefit EBITDA. The Nexplanon REMS program launch may impact sales in the second half of the year. Organon plans to reinvest $275 million in revenue growth opportunities, focusing on promotional activities for Vtama. The company is aggressively managing operating expenses to rightsize the company’s footprint and maintain margins. Regarding Nexplanon, recertification efforts are expected to maintain prescriber loyalty. OpEx savings are being built into 2026 guidance. Established brands may see some resets, with potential challenges in segments like respiratory. Vtama is projected to grow in line with nonsteroidal options, around 20-25% year-on-year. The company continues to add products like Nilemdo to capitalize on global infrastructure. No update on the search for a permanent CEO, Denosumab biosimilar was launched in December. Amgen discusses strategy to hold share in osteoporosis market with Prolia and Evenity options. CEO search update: robust process, no public update yet. Organon’s opportunity with denosumab biosimilar estimated at $100 million over 5 years. Stock Advisor team identifies top 10 stocks, Organon not included. Stock Advisor’s total average return is 913%, outperforming S&P 500. Transcript disclaimer: errors may exist, do your own research. Motley Fool has no position in mentioned stocks. Organon (OGN) Q4 2025 Earnings Call Transcript available for review.

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