Organon delivered better-than-expected first-quarter sales Thursday despite a setback for its biggest product, Nexplanon, and OGN stock popped.
Revenue from the implantable contraceptive declined almost 7% to $171 million. But Chief Executive Kevin Ali noted Organon is still adding to its women's health division with Marvelon and Mercilon, a pair of contraceptive pills from Bayer. Organon has the rights to these pills in China and Vietnam.
Organon also sells off-patent, generics-facing drugs from Merck. Merck spun out its women's health, biosimilars and established brands into Organon last June.
"Additionally, with loss-of-exclusivity risk in the established brands business largely behind us, together with continued focus on maximizing the potential of these well-known brands, we are starting to see the stability we knew was possible in that franchise," he said.
On today's stock market, OGN stock popped 5.1% to 34.87.
OGN Stock: Earnings Fall, But Beat
During the March quarter, Organon earned $1.65 per share, minus some items, on $1.57 billion in sales. Earnings sank 7% but topped analysts' call for $1.30 a share. Sales rose 4% and beat projections for $1.52 billion. In constant currency, sales advanced 8%.
Overall women's health sales fell 5%, however. That was offset by 22% and 10% growth, respectively, in the company's biosimilars and established brands divisions.
For the year, Organon reaffirmed its outlook for $6.1 billion to $6.4 billion in sales. OGN stock analysts had predicted adjusted profit of $5.47 a share on $6.26 billion in sales.
OGN stock retook its 50-day moving average on its strong earnings, according to MarketSmith.com.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
