Organon & Co., a women’s health-focused pharmaceutical group based in Jersey City, reports second-quarter earnings on Monday, with analysts forecasting a sequential improvement in performance despite a year-over-year decline.
The company is projected to post earnings of 90 cents per share on revenue of $1.57 billion, according to consensus estimates. This represents a rise from the prior quarter’s 71 cents per share on $1.46 billion in sales, though it marks a 9.9% year-over-year drop in earnings and a 1.3% decline in revenue.
Analysts covering the stock maintain a neutral stance, with a mean price target of $11.25—an 18% downside from Organon’s current share price of $13.74. Five analysts follow the stock, none of whom assign a buy rating, and consensus estimates have remained unchanged over the past week and two months.
Organon’s core women’s health franchise reported a 16% revenue decline in the first quarter, contributing to a prior earnings miss. The company posted earnings per share 14.5% below estimates and revenue 4% below projections in April, reflecting weaker-than-expected demand in its primary market.
The company’s pending acquisition by Sun Pharmaceutical Industries remains on track. The all-cash deal, valued at $11.75 billion or $14.00 per share, received shareholder approval in July. Organon’s shares currently trade at $13.74, near the 52-week high of $13.76 but well above the March low of $5.69.
Organon also plans to launch a REMS program for Miudella in early August, a move aimed at enhancing patient safety and regulatory compliance for the product.
