| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 51.33 | 501 |
| Intrinsic value (DCF) | 9.40 | 10 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 34.40 | 303 |
Organon & Co. (NYSE: OGN) is a global healthcare company specializing in women's health, biosimilars, and a diversified portfolio of established medicines. Headquartered in Jersey City, New Jersey, Organon focuses on delivering innovative and affordable health solutions, particularly in contraception, fertility, immunology, and oncology. The company's flagship products include Nexplanon/Implanon (a leading long-acting contraceptive) and biosimilars like Brenzys and Renflexis. Organon operates in a highly competitive pharmaceutical landscape, leveraging its strong commercial infrastructure to serve drug wholesalers, retailers, hospitals, and government agencies. With a market cap of approximately $2.26 billion, Organon is positioned as a mid-cap player in the drug manufacturing sector, emphasizing sustainable growth through its women's health and biosimilars segments. The company's diversified revenue streams and strategic focus on underpenetrated markets make it a notable player in the healthcare industry.
Organon presents a mixed investment case. On the positive side, the company benefits from a stable revenue base driven by established women's health and biosimilar products, with a trailing twelve-month revenue of $6.4 billion and net income of $864 million. Its dividend yield (~3.8%) and low beta (0.702) suggest defensive characteristics, appealing to income-focused investors. However, risks include high total debt ($8.88 billion) and reliance on mature products facing generic competition. The biosimilars segment offers growth potential but operates in a fiercely competitive market dominated by larger players. Investors should weigh Organon's cash flow generation ($939M operating cash flow) against its debt burden and limited near-term pipeline catalysts.
Organon competes in the mid-tier pharmaceutical space with a focus on women's health and biosimilars, differentiating itself through a specialized portfolio. Its competitive advantage lies in strong brand recognition for products like Nexplanon and a well-established commercial network. However, the company faces intense competition from larger pharmaceutical firms with deeper R&D budgets and broader portfolios. In biosimilars, Organon's offerings (e.g., Renflexis, Hadlima) compete against Amgen and Pfizer, which dominate the space with greater scale. In women's health, it contends with Bayer and Pfizer, though Organon's dedicated focus provides niche strength. The company's reliance on legacy products (e.g., Zetia, Cozaar) exposes it to generic erosion, while its biosimilar growth is constrained by pricing pressures. Organon's mid-sized scale limits its ability to compete on cost efficiency compared to giants like Merck or Novartis, but its targeted therapeutic focus allows for sharper commercial execution in select markets.