Organon & Co. (NYSE:OGN) Q3 2024 Earnings Call Transcript October 31, 2024 8:30 AM ET

Company Participants

Jennifer Halchak - VP, IR
Kevin Ali - CEO
Juan Camilo Arjona Ferreira - Head of R&D
Matt Walsh - CFO

Conference Call Participants

Balaji Prasad - Barclays
David Amsellem - Piper Sandler
Jason Gerberry - Bank of America
Umer Raffat - Evercore ISI

Operator

Thank you for standing by. My name is Mandeep and I'll be your operator today. At this time, I'd like to welcome everyone to the Organon Q3 2024 earnings call webcast. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there'll be a question-and-answer session. [Operator Instructions] I would now like to turn the call over to Jennifer Halchak, Vice President, Investor relations. You may begin.

Jennifer Halchak

Thank you, operator. Good morning, everyone. Thank you for joining Organon’s third quarter 2024 earnings call. With me today are Kevin Ali, Organon’s Chief Executive Officer, and Matt Walsh, our Chief Financial Officer, as well as Juan Camilo Arjona Ferreira, Organon's Head of R&D. Today, we'll be referencing a presentation that will be visible during this call for those of you on our webcast. This presentation will also be available following this call on the events and presentation section of our Organon investor relations website at www.organon.com.

Before we begin, I would like to caution listeners that certain information discussed by management during this conference call will include forward-looking statements. Actual results could differ materially from those stated or implied by forward-looking statements due to risks and uncertainties associated with the company's business, which are discussed in the company's filings with the Securities and Exchange Commission, including our 10-K and subsequent periodic filings.

In addition, we will discuss certain non-GAAP financial measures on this call, which should be considered a supplement to and not a substitute for financial measures prepared in accordance with GAAP. A reconciliation of these non-GAAP measures to the comparable GAAP measures is included in the press release and conference call presentation.

I'd now like to turn the call over to our CEO, Kevin Ali.

Kevin Ali

Good morning, everyone, and thank you, Jen. Welcome to today's call where we'll talk about our third quarter results. For the third quarter of 2024, revenue was $1.6 billion, representing a 5% growth rate at constant currency. The women's health franchise grew 6%. Our biosimilars franchise grew 17%. And our established brands franchise was up 3%. Adjusted EBITDA was $459 million, representing a 29% adjusted EBITDA margin. Adjusted EBITDA includes $51 million of IPR&D expense booked in the third quarter worth approximately 320 basis points of margin in the quarter.