TICKER OGN
ISIN US68622V1061
Market cap. USD
2,152,479,688
Shs outstanding 259,961,315
Organon & Co., a health care company, develops and delivers health solutions through a portfolio of prescription therapies in the United States and internationally. Its women’s health portfolio comprises contraception and fertility brands, such as Nexplanon/Implanon, a long-acting reversible contraceptive. The company’s biosimilars portfolio consists of three immunology products, such as Brenzys, Renflexis, and Hadlima, as well as two oncology products, including Ontruzant and Aybintio. It also offers cardiovascular products, consisting of several cholesterol-modifying medicines under the Zetia, Ezetrol, Vytorin, Inegy, Rosuzet, and Zocor brands; Cozaar and Hyzaar for the treatment of hypertension; respiratory products for various treatments to control and prevent symptoms caused by asthma under the Singulair, Dulera, Zenhale, and Asmanex brand names; and Singulair, Nasonex, Clarinex, and Aerius for treating seasonal allergic rhinitis. In addition, the company provides dermatology products under the Diprosone and Elocon brand; bone health portfolio, including Fosamax brand name; non-opioid pain management products under the Arcoxia, Diprospan, and Celestone brand names; Proscar for the treatment of symptomatic benign prostatic hyperplasia; and Propecia for the treatment of male pattern hair loss. The company sells its products primarily to drug wholesalers and retailers, hospitals, and government agencies, as well as managed health care providers, such as health maintenance organizations, pharmacy benefit managers, and other institutions. Organon & Co. was incorporated in 2020 and is based in Jersey City, New Jersey.
Return at exit: Live
Undervalued Gem with Strong Financials
• Organon & Co. (OGN) stands out as a compelling buy opportunity with an extraordinarily low P/E ratio of 3.75, significantly below industry averages, indicating severe undervaluation. • The company demonstrates robust financial health with a strong operating margin of 21.4% and gross profit margin of 55.7%, positioning it well to handle current debt obligations. • Recent Q3 earnings beat expectations with EPS of $1.01 (7.64% above forecasts) and revenue of $1.6 billion exceeding analyst projections. • Growth catalysts include FDA approval of POHERDY (first pertuzumab biosimilar in the US), expanding biosimilar portfolio with Hadlima gaining market share, and strategic divestiture of the JADA system for $465 million to reduce debt. • Trading at just 42% of its 52-week high with analyst fair value targets ($9.36) and InvestingPro fair value ($10.58) suggesting significant upside potential from current $7.13 price.