Organon & Co. (OGN) 5 May 222022 Q1 Earnings call transcript

Ladies and gentlemen, thank you for standing by. At this time, I would like to welcome everyone to the Organon First Quarter 2020 Earnings Conference Call. [Operator Instructions].

As a reminder, this call is being recorded. Thank you. to Investor call Relations. like Halchak, to now President, Vice would turn over the Jennifer I Please your begin conference.

will of Call. Milligan, are us be Events Thank of a will Officer, you, Officer, at our highlights; Organon's of visible capital Earnings and joining and R&D, joining webcast. Thank this will be call. those Relations who review you presentation me Organon's www.organon.com. Investor Mary, be This Organon and portion strategy Dr. our allocation; be good the Q&A performance, First morning, will our also cover for Matt Quarter available guidance and also for Chief will Walsh, you Presentations Ali, call Today, referencing who during website the following Organon's Kevin everyone. and section on Head presentation our for With on Sandra Executive today operational of this we'll XXXX Financial Chief this that call

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

now CEO, turn a call, call will of is presentation. release In GAAP not conference included to measures financial these financial be for in the the should I'd press which non-GAAP our and Kevin this comparable to as prepared certain considered reconciliation the call over Ali. GAAP. to addition, supplement in measures like on A discuss and substitute we measures accordance measures a to non-GAAP with

quarter to results. and everyone, Jen. you, first will we morning, Good talk about our today's call, XXXX Welcome where thank

a We the are we For February. XX.X% off great at revenue The year $XXX EBITDA guidance representing margin. strong currency, is $X.X quarter and X% a million, of came to provided adjusted EBITDA reaffirming constant we up full first adjusted first in XXXX, had quarter. at year billion, in back and a was the start, ranges

a Now, X our biosimilars important playing a have on ago, year been their launch, role since forward franchises, our each objectives, sustainable delivering women's brands women. established in our their health almost the of driving and company of of vision creating health, improving all

are and performance very deliver for XXXX. in fertility currency growth X to support for we demand XX% growth our with double pillars. start XXXX, grow Let's to full of as view quarter, They confident and strongly for least the in we also at that We're trends NEXPLANON both our double-digit biosimilars, year digits as that that in we year. continue NEXPLANON constant seeing the perform the the will expect full at the saw

marketing calls, in U.S. year, was are as and the of with exiting demand to increase. volume And at had first efforts NEXPLANON health awareness recall, said to XXXX. and projects our include conversations Organon to deliver you our and aimed healthy QX social performance. institutional of buying into a full providers, in our ability patterns focus and consumers a health was This where especially in the can quarter health quarter-to-quarter. and independent digital this the with December go product increase may options. to very quarter demand. very media price is But increased and forward second other in pulled in year strong bring last unique that of continuing effect provider strong, to off we ahead initiatives was some a NEXPLANON some the resulting customers we've in subject on motivating contraception price telehealth connect a NEXPLANON our had and women will As raising discuss to NEXPLANON, vary to includes products, women's an traction gaining track are recent which the expected start and first care of Other have We among quarter in prior and conversations the evident is renewed with biosimilars, all care of

quarter also the by for our care clinical than to our America, NEXPLANON. but growth triple driven last insertion of training very more to pre-pandemic X,XXX year has also from perform outside demand. about increased encouraged This in the also, of We ex the of new X-minute professionals the continue the FX quarter, outside trade activity. We're program benefited the NEXPLANON Latin which evolve number trained over XX% removal and X-minute in well NEXPLANON's we In phasing, offerings. first health first performance U.S. U.S., ahead grew tender and

until about XX% estimated X are assisted market, to in waiting very digits vitro our impacting Brazil, in and are seeing on XXX people, With an million annually. in in women it important strong have industry month of markets year. Continuing children, discussion had which very loyalty. growing X% We like grew markets health, this fertilization, important the life is brand the It U.S., record later of demand like double in March an with fertility, both China a the quarter. in technologies significant use is women's to large also reproductive a

GnRH well injections and egg and established products, the embryo freezing. treatment and favored antagonist conjunction to requires is [indiscernible] and patient friendly with [indiscernible], which foundational are protocol, in Our fewer Biogen

our positioned of and with rates, the biosimilars in launch pursuing are for commercial year, offerings remain in we among very from and We the biosimilar. after which, an as Humira infliximab to launch. U.S. X sales rates a will adoption to and study. are RENFLEXIS, since or growth by about The growing of biosimilar even tailwind grow in plus to biosimilars, an outside but annualized particularly basis. the In subject see we trastuzumab our on years infliximab XX% performance to Samsung, its biosimilar some quarter-to-quarter, that market the deliver continues undertaking our be the With next XXXX. ONTRUZANT We biologics going continue the ONTRUZANT, of sizable biosimilar and our in another for Now, patent continues business $XXX the of let's double-digit presented turn growth The expect opportunity tenders, uptake an by planned and company. benefited of the collaborator biosimilars over committed U.S. highest well vary launch U.S. market encouraged decade. of has will interchangeability show growth to U.S., to X trastuzumab blockbuster half RENFLEXIS engine remain we still mid-XXXX the biosimilar estimated to we about with billion off every has

We areas covering this well loyalty, portfolio what sizable and in globally. is biosimilar we're with will as are Samsung to evaluate seeing now. stabilization evident business to that's important us. of risk these to important growth our pillars of Organon's behind as potential LOE with the multiple in other XX seeing established The us pipeline we The therapeutic part basket business. medicines that our brand the before Equally This significant spin, brands for a opportunities well is stabilize is developers. now was this

the a There's manage Mercilon, global with often This Now, commercial a of at is and the Jada our serious beyond our the digits growth products contributed In care market months volume-based portfolio very have commercial products and initiatives. cause sustained, labor for strategy and through the active managing was in the estimated yet that good million and business XX with can on low, a our -- been cycle and our management channel will bacterial and Matt interventions XX our erosion stage focusing within can on to of recently, in to business hospital China. onetime some undermet positioned of our to approach the the our quarter products Consistent diversification. licensing for PCOS. And walk established we And collaboration Overall, and new the deliver double-digit us, very this potentially the be the to we've performance affect for rate to close Forendo continue an intermediate over brands half underlying and we success term. licensing well of country you balanced first subject needs established solid front, acquisition which -- double outperformance important women's and growth health, common a of a brands represents now, half to that full Today, bacterial BV also brands has in that commitment worldwide. not been retail most about health active women business in the quarter, ebopiprant onetime believe with procurement. for is franchises most maximizing like Marvelon multiple of growth and I'd to women's now like business deliver women and in the we to expect been operating favorable experienced well. needs our addition, ObsEva and treatment. strong single-digit treated by update Critical established development retail external growing Today, revenue of expanding light -- basis. development performance Bioscience our life with quarter, at the vaginosis for the with stated opportunities health our in the first assets items our unmet the against China. brands in the our we episodes pose level, solid to is approximately It health our we've and as Since there established currency risks. constant preterm provide demand Dare performed for on well. flat agreement favorability, XXXX U.S. PPH, the in stage year partner, endometriosis like those have from with our those double for vaginitis on investigational business to address been the there China represents fertility. growing clinical vaginosis products for symptoms channel, strategies is in assets disruptive XXXX, very of digits collaboration product we're in in in contraception of and

demonstrated XX undermet years are licensing RA rates to vaginosis to forward We're of The launch FDA-approved in approach opportunity Xaciato, of the onetime to of women, older. age trial, development. business bacterial is placebo and we III In of improved in of women cure the U.S. treatment is in product unmet which a looking QX evidence the clinical for this potential and emblematic as medication Phase compared As needs commitment Dara dose. our a an Xaciato of to clinical our with

of at because various to phases that XXXX, blockbuster development Overall, suite off to commercialized therapeutic solid is including overlooked needs, with And more I'd health options to we're a a point, over patient review assets to those area. to or from a in with build the advance of like of populations very turn have stage assemble looking potential that to to quarter Further, Our Matt assets start. clinical may unmet address women's that this portfolio it goal been of already detail. products. is in

Thank you, Kevin.

spin-off a As remind quarters, the I'll stand-alone our in if you a of as on are presented basis done results to carve-out Organon previous I've present It's were not to which is GAAP convention. intended that company. results accounting, prior

financial XXXX we to of June that financials it X, a our that comparability date where year true periods, clear where won't can Organon. time, and line we'll that's as comparisons discuss be P&L we'll revenue draw have I prior was that where stand-alone want prior to represent for discussion. spin be items best is post-spin our we to the until third the results, year because quarter apples-to-apples So results, the start all Until

impact not we primarily and brands the portfolio only LOE facing washed LOEs quarter up X, to currency new billion, The constant turning quarter. impact was of out We the was exclusivity more related out In in during happen we modest a loss first in it's new drivers, U.S. DULERA. LOE United Barings of graphic, up entrant LOE quarter to and XXXX, generic according in established revenue far of has impacts. significant in in XXXX, December any the have of of exposure Since for exchange most rates some XXXX. third and as highlight the X% So approximately when I'll been have expect reported to States. for this The this year. did XXXX $XX compared LOE happened in Slide the didn't thus we quarter the the million, break last revenue forward. or the the and change X% first significant expecting That to going in not at $X.X key

will should year happen currently results, that is our this limited incorporated read Continuing LOE that significant Our have guidance. due and potential current first quarter to the into implementation expectation chart. In year, to it was December impact is year XXXX a in for on any waterfall view the of DULERA, third China XXXX from of VBP. the volume-based round across of impact the last procurement the full

year then, products. X to of point on that largest first PROSCAR, Arcoxia. round compares new included was there from was the back Singular PROPECIA no impact when quarter Now Organon's that products. with and and Organon's of this pediatrics, That LOE the VBP

from this U.S. volume also China for and as grew products from business brands, in the volume well growth our to came fertility, base our LAMIRA growth retail significantly now, which China and non-VBP Moving established NEXPLANON increase region. for as brands, The but volume quarter. particularly Europe the in pillars, biosimilars, in and in in quarter outside the demand first

volume growth some the mentioned, If brands, And pressure. by business. this about onetime FX XX% we Kevin XX% evenly that the in XX% think onetime in base pricing of revenue quarter about X% and ex in the that favorability As was volume growth Established growth, growth to in the was items offset for was split of items. due established quarter underlying it brands between

of moving. Japan the compares currently under to Japan kind geographic and The of was them of when none sales competitors the was just of this contract was you action quarter of of onetime which third supply give franchise, products that the to to government the the the outperformance preparing to product among items be year bucket and Merck taken in arrangements. take would expectation an lower drove the in lower to due sales issue example consists several last parties, which we're a about, that quarter, weaker in demand represents manufacturing in supply needle performance other Given things market. talking margin the to alone, brands That established supply temporary largest the diversity other primarily prices. in But impacting Japanese lower pharmaceutical first

supply quarter, to about our were $XX year-over-year, consistent with expect the these arrangements that decline. For view under that's down million we and sales volume

fluctuations on is currency this derived that XXX of global understanding surprising basis markets the revenues of revenue. not headwind and during Finally, distribution X. we first translation show Foreign about This exchange represented approximately of points XX% also, for outside States quarter, our is quarter. which the given where Slide in geographic Briefly were the United

established on in the ex-U.S. both earlier showing in in All following in year you had in in brands solid Japan, established were brands prior and our here, can in the NEXPLANON growth nicely constant see ahead Latin the at regions China favorability up and the of up my performance APJ of in America, good region, and currency, fertility. we comment,

women's take on let's a by X. look at with Slide franchise. We'll start performance health now, So

reported X% business as Health in currency year, Those in decline led XX% quarter offset quarter. in Follistim, FX down continued constant and Women's was currency which declines NEXPLANON strength by partially fertility decline X% the driven and grew Our constant first in ex were X% in by a at prior versus the by NuvaRing. a X%

explained buying vary we've quarter, performance trends start. we patterns in solid as quarter prior can As good first and based But exiting a Kevin is saw on quarter-to-quarter to the customer mentioned, off NEXPLANON's second tenders. quarters, and

on the to for NEXPLANON currency growth double-digit constant We continue to year full a expect deliver XXXX. revenue basis

grew Slide FX. reported on XX% XX% as and XX. biosimilars ex Biosimilars to Turning

offset X in and XXXX products in RENFLEXIS in quarter driven our and its pressures and up are by immunology July the by X oncology. by X%, in both -- offerings performance partially strong U.S. have portfolio, continued X in was U.S. the uptake And largest launch X ONTRUZANT FX in competitive U.S. the in in XXXX ONTRUZANT driven in ex the offered XX% and are Globally, continued Europe. grew since We the RENFLEXIS

brands XX% brands have to first, base context growth no ex we impact VBP reported this there Revenue up XX. FX the quarter. first the while on and now quarter. volume as did Established business, Turning the in for should taken of, be And was Slide this Established in XX% was in

dip, no brands first LOE a final, XXXX shows there established comparison quarter in in point. our Slide Kevin QX which was Second, a brands showed third made quarter. favorable this revenue at and And you the of look of last year X if that earlier, established

was to related the related of was of consumers. to year COVID patterns Some some Japan, buying and some was dynamic prior

So performance is what is comparison of do well this more in currency, the point, as versus expectations. good there this flat trajectory brands of the our nicely close constant the February. the important we to the longer-term out guidance and single-digit believe in And the provided for really, answer gate of franchise growth embedded ahead established get which double-digit Established well low how quarter expectations erosion. quite year-on-year getting XXXX first as in underpins than the can looks, comment that now our our in revenue we better brands Kevin's is estimated is at

turning statement XX. to Slide income Now, on our

that release, quarter encourage statement the available Our important investors earnings information. our first is in for look and GAAP income I at to

statement Slide on Here at looking our for we'll the be XX, non-GAAP quarter. first income

operating these that draw purchase gross the first margin adjustments profit pre-spin you at XX.X% adjusted items there with GAAP cost amortization quarter again, XXXX, Making meaningful as not the we of the supply year-over-year EBITDA in from XXXX, margins moment reduce excluding point lowest to margin. straightforward speak Adjusted benefited to about gross were expenses the in we're lens non-GAAP outlook because the the the discuss $X this to full costs were year. a related onetime timing, was in their our sales we higher year. this gross due sales, point as improvement driver which from XXXX. were profit, the XX.X% and a which of to as expected can gross goods of to gross adjusted incurred when more well with were in first hard quarter product are the Due an For in in history, of representing I'll point year. margins though, sold. in margin accounting billion, compared spin-off of of operating company's that XX.X% this it's at the comparisons allocated remind for and compared first in margin, lower And first I'll quarter quarter

XX. we look Slide at on leverage debt As capitalization and

As was Using debt of for billion EBITDA have not an our leverage in-process million. that guidance, XX, of ratio of number and March against of adjust the approximately acquired net equivalents cash X.Xx expense $X.X does recent R&D $XXX we bank cash netted LTM March XX. SEC's for as

past consistent priorities Our capital allocation remain communications. with

priority, first which flow reinvesting delivering near-term onetime is course, for targeting free value between before servicing we're and which and strikes Our of we items growth cash appropriate balance at an the XX% believe dividend, of for shareholders.

priority deployed opportunities our supported include plants. manufacturing second portfolio, existing Our by would in capital management products cycle within organic for growth, which is life our

to of in we revenue latter, On expenditures on the expect capital separation annual range basis, costs. the excluding X% of an ongoing to see X%

say last BB Once quarter reduction, sustained our flow tie continue product capital we third growth new self-generated between priority, discretionary X.Xx. adjusted I progress that to of We're is not these reduction execution and a new to would external debt balancing we'll debt the committed of a capital, with initiatives. rating, against Now, cash significant ratio deployed sourced absorbers plans that below towards externally priorities for of did leaves will pipeline growth net opportunities, are in fourth BAX a Parent to develop balance allocation first X our debt maintaining big really again, EBITDA make capital because just for like of to we which year.

to guidance Slide now Turning on XX.

original an FX on spot basis this to No or better basis mostly biggest business, year-on-year. XXX difference Here, currency, version million or $XXX the of February the of approximate constant $XXX and impact today. $XXX has changes slide XXX we or which XXXX translation impact, net page from even million gone point significant to the showed our based at expected million bridge unfolding most the aligned $XXX to on million The headwind are on approximate headwind we is drivers slightly the revenue Operationally a expectations. rates you to are is that an change XXX guidance. our to this in with year identical where XXX to our from points than

the data within we see range. to With that guidance have at we the original revenue present, continue XXXX

billion we exchange rates where are $X.X our if don't Although the be they end billion from to today, improve lower at would likely $X.X revenue of range.

expect $XXX competitor still we NuvaRing the in of last communicated and approximate coming we LOE, [indiscernible] quarter, for from generic impact as an a million For possible U.S.

As for both Kevin which have last XXXX reiterated our significant and expected we impact was product today, the year LOE I portfolio. within revenue

And based continue rounds VBP this million and be we X also last that think be implemented in China. $XXX message X later we to year, that approximate VBP is communicated the an will VBP impact manage on same our quarter. will We assumption

supported COVID And that XX% the first recovery. with for well, And business been million actual volume, tracking to activity. do the by recent as remains our The is our expected in brands important and is the global million for to a that business selling in lesser base growth China less for way, quarter in development estimate our of $XXX volume We than growth of markets about and of trends come XXXX, This increase and many volume performance. first established the growth line erosion biosimilars, volume once and multiple full we the again, that's expect quarter years. pillars, supported million by results. pricing into $XXX unchanged, $XXX growth guidance attributed it retail fertility, expect our Organon year. to projecting we're NEXPLANON, actual be historical to that to of has for of majority we're component We from price extent, by can that

Turning other over are in saw XX, to which first absorbed of the will we and the forward looking margins, margin in guidance EBITDA we Slide metrics today. to be regard quarter With of execution expenses expected well will quarters business as initiatives as related in remaining increases energy well as with costs to drive by of growth, operating driven XXXX, the as downward inflation. XXXX, affirming development supply all favorability adjusted that revenue increased balanced higher on costs, chain future

be impact and We operating for chain expense increased of impact mainly all although that. marketing on Forendo R&D, expect And Mercilon volume. the COGS example in Asian the and around the promotional launch supply of item, will as up rights costs cost line an completed would Marvelon in inflation deals examples spending SG&A, operating certain expense where reacquisition development will [indiscernible] the show Incremental primarily business for countries. of

beginning expenses for exclude XX% XX%, be in if at forward of revenue, last other our guidance year being low that point As with to the views expenses they align or There quarter EBITDA for range are, to Important remain the discussed be lowest as expenses practices with our expected for where from the the is Organon and is while no to sector, results. being need for well And longer looking build the range the will are the year, at this our adjusted throughout we margins. no maintained full year such were full to first by our in-process exchange year R&D currently year. to XXXX, companies XXXX. SEC. rates end along in quarter expressed non-GAAP just the fourth of as operating for in changes I made These going

of fourth The be have Tables in found been in XXXX of quarters business the last transactions for year, along, with as of to full detail year slides guidance can our reflect that to full X of recasting of these development release, the third and incorporating and course, our an into R&D not changes press We're not X as future yet appendix in executed. presentation. this earnings any in-process well estimate recast

and based to stabilization details back Our the quarters established in solely discussion, Wrapping that I'll criteria strong to strategic contract. our to those growth start and/or double-digit solid associated for on year. might tailwinds point, not of have non-GAAP fertility, in plan be payments we're with is alone. the financial up demand any business that this would we NEXPLANON, structural to results well, inclusion a the those trends we'll the Operationally, the performing off for biosimilars between in for provide. have and business signed payments on the some payments the questions. operator transaction, involves we business turn call brands future we At time. development while as signaling a been for our the guidance we provide milestone upfront us, activity to announce priority update impact And will when also impact is guidance would work relevant Business development do a to

Instructions]. [Operator

comes of BofA. first from line the Our question Gerberry from Jason

an on to you of yet you the target for action date a the Sonera, biosimilar, can confirm, do from then, do benefit have product? And version what Just hope you concentration high I chunk good going time interchangeability in of be the by volume to of it, biosimilars. the you're a presumably, And not first. have in mean, timing, will study? be terms you

just see that curious running study. of the value So of as sort what you

Yes, Jason.

So Kevin.

question. So good

to in next So we to launch are year. regards biosimilar, HADLIMA, July of Humira in planning our

issue have the interchangeability, And does that how of our growth. I very high issues for product, interchangeability, those been a believe various what's many of being Innovative So terms that We've -- all to as the this what's around interchangeability is in think doing important other and it's got regulatory to asset, high it PBMs variables and we launched going real-world and in we plans that's clearly, to HADLIMA the in the contributor importance -- are of it's future of rapidly exciting and applicator, -- variables -- at one Do launched, safety that. And have But being it? regards and in be markets? the to you being looking regards fact think dose approaching. actually evidence. concentration, I concentration

Now, to LOE be you're launch, time the is of Jason, at going market, the of of a coming nobody perfect Humira at looking what with the profile of time to or for.

may not excellence and evidence, backbone we their of have manufacture. may concentration, terms Some being real-world and able production constant that capabilities type not the to have with Samsung interchangeability of in others have situated but have may high in high

to business. your do. And very good biosimilar people up segment have by the of these interchangeability terms being the a are of with is formulary in able in have payers of a the many with to will folks? fact with fact of there not before And and these that PBMs to about we order be how well relationships? since these access, the group considering terms there? relationships on are the assets history Back long in and have in almost one now biosimilar a we in Is really that key spin the of that credibility there variables good work feel for. the Do to for So been you U.S. of the have working important is the be way, relationships Are people PBMs. looking days do we built get that with most trust the which that decade in many able variable of develop lot long-term probably you

Stanley. Terence the from comes Our Morgan from next question of Flynn line

XXXX. me. some you've regarding preliminary in for I'm a discussions contracting questions on assuming two Maybe, One, had follow-up already HADLIMA. Great.

a until some in confident participate be So the decent meaningful that piece be half way. the able if to just I investors you're won't assuming volume year, XXXX biosimilars you'll think, now, a to second really, as of are wondering secure able of

So Just year baked for as think your the the us, lockdowns question. rest about kind any us first some of outlook maybe, you the the Particularly, the in or COVID just what's into of help And remind of the embedded is already guidance? side? about impact guidance that's think then, there? China, Matt, for rolling given on your that

Terrence. Yes,

going essentially doubt. but to formulary. There's as PBMs be there's market, not regards shift, I'll Probably, the obviously, that I a PBM, quite busy. of We well on very full be few in We X start X as question to a X, to players that it be first depends to XXXX do HADLIMA to the follow-on. no a going there assets would small part segment few few is like a business believe as your will guess, to others. the coming originator will this wholesale is going on of going with approach a be to are to believe second market. rather, given molecule There's quite be any probably, a X a the So biosimilars to the way

the others so talked And down so the being so variables coming I and the on and dose, the all real-world the high concentration forth. indication think that line, ultimate citrate-free, the interchangeability applicator about, the I unique evidence,

that And we so I believe probably, on do speak, working as contracts. PBMs, the are currently XXXX

we're a some much formulary penetration. business see got half XXXX critical so of China. to to country, be will the Matt of online, various volume. increase. more and then, very relationships that we've excellent to across in all the and asset in near start as with is ultimately, question go. it going got ready But we're regarding to come hand over we I'll PBMs HADLIMA. in the of start you'll on about happy and But be and talk your to clearly, beyond, to good it's in term We've going there And payers getting second to And

related our impact in we an lockdowns. not China, for COVID did So much to of see business

have impact recovery the We the of QX half forecast in latter the an of rest for in year. factored, into though, our the year

be on like incorporated we of feel year. for guidance. a the see, constant And basis, will that China within lockdowns consideration we've absorbed in can grow really, we currency appropriate affirmation COVID China So this

next Our the line Raffat of question comes from ISI. from Evercore Umer

planning in any in a are This And is trials I NEXPLANON had slowed there? for for R&D. X-year Organon Umer. COVID question the other timelines recruitment like separately, or indications on going quick the any Has How is dysmenorrhea study? Eric nausea? just calling down

the thanks Eric, for question.

formulating additional NEXPLANON. and it's We timeline. to month taking based previously about the team And the to indications not with our indications, a saw we're we're bring asset of generally is regards with on concerned impact, this right strategy for the the that now around going X-year on the the shared a at So regards additional to but indication, enrollment not slowdown look in COVID track. on development key our

growth. And just Got it. on the biosimilar one last

Brazil. You upcoming in or and offers? Australia mentioned maybe, before drivers more you're on what tender on kind there, Can you detail give of seeing uptake trends

Yes.

that X in Eric, in that there's question. parts So look I to -- at regards So

our of biosimilar obviously, U.S. mentioned, I the But across the for biosimilar, as as the is start going as said, key all, HADLIMA, is you of footprint to part our And be key real-world at look evidence. to overall we the First business world. you market market, very late we that been have and across see digits strong XXXX have digit X and double countries. as well, And that XXXX, with all ultimately -- in Australia Canada, really with those of doing we countries has those products. double uptake growing been have X nicely great -- movement [indiscernible] the

the that, a Now, experience is Samsung to Biogen, sense U.S. for of the HADLIMA the have Europe by long-term it, we a with partner had which having in product do experience aspect in that Europe in of this HADLIMA PBMs confidence with evidence said gaining quite this bit has back of product. [indiscernible] real-world of

the of from Goldman Sachs. Chris comes question next Our from line Shibutani

provided approvals seeing share general? what And that, any U.S.? the in contraception wanted within you I you're to broadly, about gaining the outside questions the growth, And general, perhaps terms market U.S. of health Can women's then, the ask about to further particularly the think of contraception specific in about as can How the has international more NEXPLANON, further more trending? XX%, X/X? marketing talk And the of been further? you maybe, of to been mix I about also like XX% metrics that your provided has and direct-to-consumer? quantification shifting you've U.S. that see with a the digital engagement you what on previously to X area. focus to from relating well business, some you comment on then color the [indiscernible] in do

the for thanks Chris, question.

NuvaRing that's Let growth, think have contraceptive me of into daily in growing example, lot a the to U.S. terms both as in as of part well the long-acting well regards , from segment reversible worldwide by NEXPLANON. I business well, of times, and as that lark in the how like, a in way, in with Lark as first for movement, pill And is of others. short-acting been [indiscernible] shift, address reversible as And contraceptives, it the terms terms going

pull the high you bill, And doing -- we overall all-time was There business. QX. when increase of that mentioned we're things well tremendous been engaging in very the terms terms in doing, kind terms we're lot in terms certifications what seeing we're doing, example, clinics you the of years of clinical as that in the improvement we of digital terms other But mentioned, that a business the are an in of of of is saw bit media, the that a mentioned, of receptivity very program, It's nexplanon.com, our And because clearly the X I when why for in that to and at of buy that's in we're previous of There's able all-time slow things or in we've had is it to a -- internet January. terms of that some we issues as as showing sites. fantastic year so in. a of do the March all Last price strong physicians training as high. versus pulling growth distributors a month. and start and a month, in we of we -- As data, there's clearly signals forward a of But look over February that end relatively I year. had shows from month, bit there's feel strong to sequential April sales forward to last over was the a we terms

have the So XX,XXX visitors in exceeded locator out XX,XXX of almost a physician benchmark, quarter. searches total we first

in women As to initial nexpelon.com, about to my and capability talk and a NEXPLANON enable health a we care in statements, I immediately professional contraception telehealth XXXX April our at mentioned offers. started new to

program since pre-pandemic our removal of in the So nexplanon.com, we're being doing when about visits talk When about you pre-pandemic bit back certification about clinical the well on campaigns. the at as that X-minute in things strategies phase. being our regards media terms to an talk we're training to insertion on as X-minute social doing quite tactically, a really and talk all-time high level, when you you digital rep

year, for last in in that we the saw really see as We growth great, type the same of have really, we'll and very I'm confident XXXX. double-digit year

proxy, front wellness about update a a And to decline Any on to bearing as had that there follow-on, NEXPLANON. that trends seeing, returning what perhaps, was wellness you're for previously has practitioners in you commented patients there? XX% on with for the business, engagement

Chris. Yes. That's a great point,

around say increase better health of been me number women remember, that We're forward. to to continues move hoping able of visits, XX% does that in telemedicine. Because an be time, that a people in Let over that at that, are reduction of there's this, terms though, health that, kind lingering seeking checks.

women, So think their activities that, changed of terms in these are going that telemedicine women the seek checks. point health to to But kind do. And well help that, place as is are we continues the do, is they to going some think forms new especially the I are directly NEXPLANON checks, some who for that to of think, the stabilizing that the that's of opposed not getting all of that probably to an what taking going health kind health as of of before fact increase, And extremely terms because bit. nontraditional care there market visits. said has office and the do dynamics the think in who that's used of what's to health to I pandemic having of those a I we

but in senior market, the management of NEXPLANON, double-digit see phases. that early pay whole the NEXPLANON emphasis, into was number some dividends support, attention of putting the for really, the to a all-time about promise XX% off highs see the and Organon of we're starting in example, resourcing, that we for for reduction, because in So might see fact we of you because growth areas, a have

Amsellem David Piper of line Sandler. the from from comes question next Our

couple So just I questions. a had of

just I Obviously, get to shared overall thoughts your wanted integration have in you vertical First, on biosimilars. economics.

what brain trying are wisdom vertically your doing shared that's something distribution of the [indiscernible] what that your see, with accomplish to biosims. of in terms with how Here, you're of did you guess, pick just you I I in your model wanted to light and Biocon. what in on versus model integrated model, economic

And of good you U.S., rate a thinking So about how way longer thinking And the terms direction established of term, broadly, dynamics business? of how play? can natural then, into in brand that's will, about remind you're how portfolio about us number ex competitive longer term, you Or think that for erosion, two, number the one. just price? sort a of you come what's erosion, if of

Thanks for the David. question, question, Thanks the David. for

and play question me address just and doing there. the first with to biosimilars vertical answer a regards Let around

the way that are to our very Things to biosimilars to more business We know a though, we almost decade what a Samsung, of strong in now a And terms least both happen aggressive. the very is our overall right change in now overall that, at Look we'll is going the XX erosion of process with going in number perceive beyond long, for part relationship you really now. -- out forward. variables decade terms could terms X don't of the focus of as which -- there. And comfortable going is see. price have almost in being of mean, next see I are the from opportunistic there of a this to years. play our We

really a responsible woman, better a in which to the our result to it's being market. would opportunities day vision, women's grow there. us health where We healthier call, done our for is the where capital allocation, old see better I we've see X a focus as deals on And our that's We every put So really every of of, we for in before what portfolio. even year the space. done valuations kind we've and

viability it biosimilars the opportunity very to of very but smart and we of for contributor a we being So player women's terms over allocation capital see real also a long-term growth putting health being time. see see growth, of strong where going as we in important as

the business, of this very the that ex last saw our type well. products. actually the other, long-term I of focus, I the -- specifically all could proven I've with They the country-by-country same worked know lot these quarters, over X that them And years. of has flat. with with predicated a in And look, resourcing, now. or at question favor. the a a the almost to to one If region level onetime we've positive that business on to into from I've right established now, the focus, regards for type view, coming had being brands, attention, look because double-digit go I these strong right the a of Now, that spin entrepreneurial were of opportunities. that very number type country there's knew single of quarters, in products phenomenal right U.S. quarter, no well but erosion, experience vary was we from over of erosion XX this events pattern, second that single

things Atozet, you for Things of our some Europe. product annual example, in the the of X/X around overall pricing these company some expected, we that review but I the overall, And like example, year for this events, onetime of first like, -- overall. for planned year, factored procurement that headwinds the of for that be X half are established brands, Japan in in things that in. biggest we Given round that some of coming favorable These could want some go headwinds there our the get like, pricing second our X, temper again of the in Things see products. very for, a we've over very we very, next fact the growth confident flat see volume-based am But if fact it in quarter, strong double-digit business I we way, had second we'll better. to slightly that that potentially, that, was because our

I long low would very, very But would for the short say term, So for term, I erosion. would be single-digit flat. the it say

from of from Our Securities. question the Fraser Greg comes Truist next line

NEXPLANON, IUD something much apologize to on I'm products? related versus this easy is from do opportunity covered you driven sustainable? fundamental share if established portfolio. take sense that patients in growth on And to brands, your IUDs? already, by Or for that new curious more an is of could you share called that be how expect the was be And drivers out I then, QX strong daily you might items and make primarily that patient there switch from onetime if but comps an to

compliance do definitely key that and have -- in think high. the be one area going terms unintended our brands that of high just happy attributable worldwide, in lower terms moving decade XX% been is I had just south first volume business. to an though, So clearly opportunity XXs. NEXPLANON pills XX% of last half your we for onetime biggest of get and the other in things. be fighting business second being and very need really would quarter, say, we're for addressed. underlying be But we've area question, against LARCs. much to the U.S. and the daily That's And in that, we're regards a a ultimately to that to way, women of big issues first I base going volume. feel And unmet the value around are pregnancies opportunities don't way for the really. that in part going continue of who Unintended about where to has to the needs lead for could that -- worldwide to not on and believe, we're future. in pregnancies only to We're hovering couple focused we to we the got for with the the established share that in And from do example, the be of the over. regards number about was the is question, growth with would be too half I other half, ultimately, half, items because

there's rate simple are easy really and the And runway to there, women a so clearly, of prescribed out convenient, to a huge have product something or #X for so of and efficacy lot And number us. there's dissatisfaction higher pills in terms in wanting COCs communities administer. that's clearly a and much of

really the So of I that look the think future we at that's way NEXPLANON.

Our Cowen. from comes next the Michael line Nedelcovych from question of

on instance, there XXXX? circumstances Organon Another you by don't reasonably external For would any if Are inhibit in that are such you HADLIMA, a from the launch? certain not launching block HADLIMA IP, other mind. that contemplated contract, won't maybe,

issues any now. right I Michael, So see don't

think right and we're of those the all I the in nature. things challenges the that regards have out all to been in IP now, worked issues late and game

see don't in I would inhibit in my right next So now, of launching year. anything from us that July view,

this time. you questions further may There are no at Presenters, continue.

I day known outset, Organon the need health throughout and concluding So deliver executing on From we've Look, medical much. management we in vision sustained, fund in independent I'd progress history a state we remain difference today, ability -- on you We're Thank you of remarks. what our Thank focus objectives. have sets deliver the an attention to way look right well and suite like unmet apart. tremendous of investment just very would business making enable cash some to Of company, Organon every true every short the franchises on made that our is level woman. that to and as for with our these for what stabilization the our of time of to focused our our healthier important what a potential now say business. significant and women's That address potential. full and brands on we building all to a to do seeing. and of to to am is and is you significance reveal we better their with for flows unlock established efforts of brands delighted forward X the speaking women are our quarter. products your of particular

everyone, you, Thank call. conference for today's concludes participating. This

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