Topic: How To Invest

Q: Hello, Pat. Could you kindly provide your input on whether Organon (OGN) is worth investing in? Thanks.

Article Excerpt

A: Organon & Co., $14.72, symbol OGN on New York (Shares outstanding: 257.5 million; Market cap: $3.8 billion; www.organon.com), is a global healthcare company focused on improving women’s health. Its portfolio of more than 60 medicines largely target conditions affecting women. Its three operating segments are Women’s Health (28% of revenue), Biosimilars (10%), and Established Brands (62%). Organon launched June 3, 2021, with the spinoff of the non-core assets of Merck & Co. Inc. (symbol MRK on New York). Those assets include Merck’s Women’s Health lineup, biosimilars (cheaper copies of complex biologic drugs), and older legacy brands. Merck then handed out the new shares to its investors. Merck initiated the spinoff so it could better focus on oncology, vaccines, hospital/specialty care, and animal health while Organon could receive the managerial attention it needed to thrive. Today, Organon’s Nexplanon contraceptive implant is the biggest part of its business. In the most recent quarter, ended September 30, 2024, Nexplanon accounted for 15.4% of overall revenue…