Organon, which was spun out from Merck in 2021, describes itself as a global healthcare company with a focus on improving the health of women. It has a portfolio of more than 60 medicines across a range of therapeutic areas, led by its established products division. Featured are such drugs as asthma medication Singulair and cholesterol drug Azotet, which accounts for two-thirds of its $6.3 billion in revenues. This is supported by its women’s health division (25% of revenues) and its biosimilars division. Its range of products produce strong cash flows that support innovation and future growth opportunities. It employs 10,000 people and is headquartered in Jersey City, NJ.
Income Investor
Organon has been neglected since its spinoff and as a result is very cheap (selling at seven times 2023’s forecast earnings). It has a high and sustainable dividend yield. Its big portfolio of biosimilars includes Hadlima, a biosimilar to Abbvie’s blockbuster Humira. Organon and partner Samsung Bioepis launched it in July and priced it at 85% less than Humira. Most of its pipeline is made up of early-stage candidates, which means it has potential for long-term growth. -Gavin Graham
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OGN was first recommended here on November 10, 2023