ORGANON & CO.

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ORGANON & CO. Management's Discussion and Analysis of Financial Condition and Results of Operations (form 10-Q)

05/06/2022 | 06:11am EDT

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION


Some statements and disclosures in this document are forward-looking statements.
Forward-looking statements include all statements that do not relate solely to
historical or current facts and can be identified by the use of words such as
"may," "believe," "will," "expect," "project," "estimate," "anticipate," "plan"
or "continue." These forward-looking statements are based on our current plans
and expectations and are subject to a number of risks and uncertainties that
could cause our plans and expectations, including actual results, to differ
materially from the forward-looking statements. Risks and uncertainties that may
affect our future results include, but are not limited to, expanded brand and
class competition in the markets in which Organon operates; difficulties with
performance of third parties Organon relies on for its business growth; the
failure of any supplier to provide substances, materials, or services as agreed;
the increased cost of supply, manufacturing, packaging, and operations;
difficulties developing and sustaining relationships with commercial
counterparties; competition from generic products as Organon's products lose
patent protection; expiration of current patents or loss of patent protection
for Organon's products; difficulties and uncertainties inherent in the
implementation of Organon's acquisition strategy or failure to recognize the
benefits of such acquisitions; pricing pressures globally, including rules and
practices of managed care groups, judicial decisions and governmental laws and
regulations related to Medicare, Medicaid and health care reform, pharmaceutical
reimbursement and pricing in general; and other factors discussed in Organon's
most recently filed Annual Report on Form 10-K and subsequently filed Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K, including those discussed
in the "Business," "Risk Factors," "Cautionary Factors that May Affect Future
Results" and "Management's Discussion and Analysis of Financial Condition and
Results of Operations" sections of those reports.

General


The following Management's Discussion and Analysis of Financial Condition and
Results of Operations is intended to assist the reader in understanding the
Company's financial condition and results of operations. The following
discussion and analysis should be read in conjunction with the Company's
Condensed Consolidated Financial Statements included in Part I, Item 1 of this
report and with our audited financial statements, including the accompanying
notes, and Management's Discussion and Analysis of Financial Condition and
Results of Operations included in our Annual Report on Form 10-K. Operating
results discussed herein are not necessarily indicative of the results of any
future period.

Organon & Co. ("Organon") is a global healthcare company formed through a
spinoff from Merck & Co., Inc. ("Merck") to focus on improving the health of
women throughout their lives. Organon develops and delivers innovative health
solutions through a portfolio of prescription therapies within women's health,
biosimilars and established brands (the "Organon Products"). Organon has a
portfolio of more than 60 medicines and products across a range of therapeutic
areas. The Company sells these products through various channels including drug
wholesalers and retailers, hospitals, government agencies and managed health
care providers such as health maintenance organizations, pharmacy benefit
managers and other institutions. The Company operates six manufacturing
facilities, which are located in Belgium, Brazil, Indonesia, Mexico, the
Netherlands and the United Kingdom ("UK"). Unless otherwise indicated,
trademarks appearing in italics are trademarks of the Organon group of
companies.

Separation from Merck


As previously disclosed, on June 2, 2021, Organon and Merck entered into a
Separation and Distribution Agreement (the "Separation and Distribution
Agreement"). Pursuant to the Separation and Distribution Agreement, Merck agreed
to spin off the Organon Products into Organon, a new, publicly traded company
(the "Separation"). The Separation from Merck was completed on June 2, 2021, in
which Organon's Common Stock was distributed to all holders of outstanding
shares of Merck Common Stock as of the close of business on May 17, 2021 (the
"Record Date"). For each share of Merck Common Stock held, such holder received
one tenth of one share of Common Stock, and holders received cash in lieu of any
fractional share of Common Stock they otherwise would have been entitled to
receive in connection with the Distribution. Organon is now a

                                      -23-
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standalone publicly traded company, and on June 3, 2021, regular-way trading of
the Common Stock commenced on the New York Stock Exchange ("NYSE") under the
symbol "OGN." Until the Separation on June 2, 2021, Organon's historical
Consolidated financial statements were prepared on a standalone basis and were
derived from Merck's consolidated financial statements and accounting records.

For the periods subsequent to June 2, 2021, as a standalone publicly traded
company, Organon presents its financial statements on a consolidated basis. The
condensed consolidated financial statements have been prepared in accordance
with accounting principles generally accepted in the United States of America.

The Separation was completed pursuant to the Separation and Distribution
Agreement and other agreements with Merck related to the Separation, including,
but not limited to, a Tax Matters Agreement, an Employee Matters Agreement and a
Transition Services Agreement (See Note 14 for additional details).

Recent Developments

Business Development


In February 2022, Organon acquired the product rights and related inventory from
Bayer AG to Marvelon™ (ethinylestradiol, desogestrel) and Mercilon™
(ethinylestradiol, desogestrel), combined oral hormonal daily contraceptive
pills, in the People's Republic of China, including Hong Kong and Macau, and has
entered into an agreement to acquire the rights to these products in Vietnam.
Marvelon and Mercilon are already owned, manufactured, and marketed by Organon
as prescription oral contraceptives in 20 other markets. The transaction was
accounted for as an asset acquisition. In the first quarter of 2022, Organon
paid $30 million to acquire the product rights and inventory in China and
accrued an additional $35 million related to these rights which will be paid
during the second quarter of 2022. This resulted in Organon recognizing an
intangible asset of $42 million related to the product rights with the remainder
of the consideration recorded to Inventory for the fair value of acquired
inventory during the first quarter of 2022. The intangible assets related to
currently marketed products will be amortized over their estimated useful lives
of 10 years.

The transaction to acquire the rights to these products in Vietnam is expected to close in the second quarter of 2022 and is subject to customary closing conditions, including regulatory approval.

COVID-19 Update


Organon remains focused on protecting the safety of its employees and supporting
Organon's communities in response to the COVID-19 pandemic. COVID-19-related
disruptions, including patients' inability to access health care providers,
prioritization of COVID-19 patients, as well as social distancing measures have
negatively affected our results.

Our product portfolio is comprised of physician prescribed products, mainly in
established brands, which have been affected by social distancing measures and
fewer medical visits. Additionally, our portfolio in women's health includes
products that are physician administered, which have been affected by limited
access to physicians and healthcare centers. These impacts, as well as the
prioritization of COVID-19 patients at health care providers, resulted in
reduced administration of many products within established brands particularly
for respiratory and cardiovascular products and women's health product
Nexplanon® (etonogestrel implant) (sold as Implanon NXT™ in some countries
outside the US), throughout the prior year.

We believe that global health systems and patients continue to adapt to the
evolving impacts of the COVID-19 pandemic. Due to the significant uncertainty
that exists relative to the duration and overall impact of the COVID-19 pandemic
resulting from resurgences in COVID-19 infections or new strains of the virus,
our future operating performance, particularly in the short-term, may be subject
to volatility.

Operating Results

Sales Overview
                                       Three Months Ended March 31,                                           % Change Excluding
($ in millions)                         2022                   2021                   % Change                 Foreign Exchange
United States                     $          329          $        351                          (6) %                        (6) %
International                              1,238                 1,155                           7  %                        13  %
Total                             $        1,567          $      1,506                           4  %                         8  %

U.S. plus international may not equal total due to rounding.

                                      -24-
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Worldwide sales were $1.6 billion for the first three months of 2022, an
increase of 4% compared with the first three months of 2021. The sales increase
is primarily due to strong volume growth for products within the established
brands business, particularly for respiratory products Nasonex® (mometasone) and
Singulair® (montelukast sodium) in Japan and China and, to a lesser extent, for
cardiovascular products Rosuzet™ (ezetimibe and atorvastatin calcium) and
Atozet™ (ezetimibe and atorvastatin calcium). Worldwide sales also reflect
strong performance in biosimilar products mainly in the United States, Canada
and Europe, resulting from the continued uptake of Renflexis® (infliximab-abda)
in the United States, as well as strong performance of women's health fertility
product Follistim® (follitropin beta injection). These increases were offset by
lower sales of women's health products Nexplanon, primarily due to distributors'
buying patterns in the United States, as well as generic competition for women's
health product NuvaRing® (etonogestrel/ethinyl estradiol vaginal ring) and the
authorized generic etonogestrel/ethinyl estradiol vaginal ring in the United
States.

The loss of exclusivity ("LOE") negatively impacted sales by approximately $30
million during the first quarter of 2022 compared to the first quarter of 2021,
based on the decrease in volume period over period, mainly impacting NuvaRing in
the United States. Volume-based procurement ("VBP") had a de minimis impact on
sales during the first quarter of 2022 compared to the prior period.

Organon's operations include a portfolio of products. Highlights of the sales of
Organon's products for the three months ended March 31, 2022 and 2021 are
provided below. See Note 13 to the Condensed Consolidated Financial Statements
for further details on sales of our products.

Women's Health
                                                Three Months Ended March 31,                                           % Change Excluding
($ in millions)                                  2022                   2021                   % Change                 Foreign Exchange
Nexplanon/Implanon NXT                    $           171          $        183                          (7) %                        (5) %
NuvaRing                                               41                    45                         (10) %                        (6) %
Follistim AQ                                           61                    52                          17  %                        20  %
Ganirelix Acetate Injection                            30                    29                           2  %                         6  %


Contraception

Worldwide sales of Nexplanon, a single-rod subdermal contraceptive implant,
declined 7% in the first three months of 2022 compared to the first three months
of 2021, primarily due to lower volume in the United States resulting from
distributors' buying patterns in prior periods, partially offset by a favorable
impact from the timing of tenders in Latin America and volume growth due to
changes in wholesaler and distributor buying patterns in the UK.

Worldwide sales of NuvaRing, a vaginal contraceptive product, declined 10% in
the first three months of 2022 compared to the first three months of 2021
primarily due to ongoing generic competition in the United States. We expect a
continued decline in NuvaRing sales as a result of generic competition. In
addition to sales of branded NuvaRing, we have an agreement with a generic
manufacturer that authorizes the sale of generic etonogestrel/ethinyl estradiol
vaginal ring in the United States. Under the terms of the agreement, we are
reimbursed on a cost-plus basis by the generic manufacturer for supplying
finished goods and receive a share of the net profits recorded by the generic
manufacturer. Under the terms of the agreement, our share in the profits
declines over time as new participants enter the market. Revenues from this
arrangement were $11 million and $32 million for the first quarter of 2022 and
2021, respectively. The decline in revenue for the first three months of 2022 is
due to the entry of a new market participant. Given the nature of this
arrangement, we expect revenue under this arrangement to continue to decline
significantly for the remainder of 2022.

Fertility


Worldwide sales of Follistim AQ® (marketed in most countries outside the United
States as Puregon™ ), a fertility treatment, increased 17% in the first three
months of 2022 compared to the first three months of 2021, primarily due to
higher demand in China and continuous volume growth in the United States.

Worldwide sales of Ganirelix Acetate Injection (marketed in certain countries
outside the United States as Orgalutran™), a fertility treatment, slightly
increased during the first three months of 2022 compared to the first three
months of 2021.

                                      -25-
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Biosimilars
                                        Three Months Ended March 31,                                           % Change Excluding
($ in millions)                          2022                   2021                   % Change                 Foreign Exchange
Renflexis                         $            46          $         38                          21  %                        21  %
Ontruzant                                      22                    22                           -  %                         5  %
Brenzys                                        14                    10                          40  %                        44  %
Hadlima                                         6                     2                              *                            *


* Calculation not meaningful.

The following biosimilar products are part of a development and commercialization agreement between Organon and Samsung Bioepis entered into in 2013. See Note 3 to the Condensed Consolidated Financial Statements. Our commercialization territories under the agreement vary by product as noted below.


Renflexis® (infliximab-abda) is a biosimilar to Remicade® (infliximab) (a
trademark of Janssen Biotech, Inc.) for the treatment of certain inflammatory
diseases. Sales growth in the first three months of 2022 was driven primarily by
continued demand growth and favorable channel mix in the United States. We have
commercialization rights to Renflexis in countries outside Europe, Korea, China,
Turkey and Russia.

Ontruzant® (trastuzumab-dttb) is a biosimilar to Herceptin® (trastuzumab) (a
trademark of Genentech, Inc.) for the treatment of HER2-overexpressing breast
cancer and HER2-overexpressing metastatic gastric or gastroesophageal junction
adenocarcinoma. Sales for the first three months of 2022 slightly increased
driven by continued uptake in the United States since its launch in July 2020,
partially offset by competitive pressures in Europe. We have commercialization
rights to Ontruzant in countries outside of Korea and China.

Brenzys™ (etanercept) is a biosimilar to Enbrel® (etanercept) (a trademark of
Immunex Corporation) for the treatment of certain inflammatory diseases. Sales
in the first three months of 2022 increased 40% primarily due to volume growth
in Canada and the timing of shipments in Brazil. We have commercialization
rights to Brenzys in countries outside of the United States, Europe, Korea,
China and Japan.

Hadlima™ (adalimumab-bwwd) is a biosimilar to Humira® (adalimumab) (a trademark
of AbbVie Technology Ltd.) for the treatment of certain inflammatory diseases.
We have worldwide commercialization rights to Hadlima in countries outside of
the EU, Korea, China, Turkey and Russia. Samsung Bioepis reached a global
settlement with AbbVie permitting us to launch Hadlima outside of the United
States starting in 2021 and in the United States in June 2023. Hadlima is
currently approved in the United States, Australia, Canada, and Israel. Hadlima
was launched in Australia and Canada in February 2021. Following these launches,
we recorded sales of $6 million during the first three months of 2022, an
increase from modest sales during the first three months of 2021.

Established Brands

Established brands represents a broad portfolio of well-known brands, which generally are beyond market exclusivity, including leading brands in cardiovascular, respiratory, dermatology and non-opioid pain management, for which generic competition varies by market.

Cardiovascular
                                        Three Months Ended March 31,                                           % Change Excluding
($ in millions)                          2022                   2021                   % Change                 Foreign Exchange
Zetia/Vytorin                     $           137          $        133                           3  %                         7  %
Atozet                                        119                   112                           6  %                        14  %
Rosuzet                                        22                    15                          44  %                        58  %
Cozaar/Hyzaar                                  93                    90                           3  %                         7  %


Combined global sales of Zetia® (ezetimibe) (marketed in most countries outside
of the United States as Ezetrol™) and Vytorin® (ezetimibe/simvastatin) (marketed
outside of the United States as Inegy™), medicines for lowering LDL cholesterol,
increased 3% during the first three months of 2022 primarily driven by higher
demand of Ezetrol resulting from expanded access in China and competitors'
supply disruptions in Japan.

                                      -26-
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Sales of Atozet™ (ezetimibe and atorvastatin calcium) (marketed outside of the
United States), a medicine for lowering LDL cholesterol, increased 6% for the
first three months of 2022 compared to the first three months of 2021 primarily
due to increased demand in France, Spain, Japan and Mexico.

Sales of Rosuzet™ (ezetimibe and rosuvastatin calcium) (marketed outside of the
United States), a medicine for lowering LDL cholesterol, increased 44% in the
first three months of 2022 compared to the first three months of 2021 primarily
due higher demand in Japan.

Combined global sales of Cozaar® (losartan potassium), and Hyzaar® (losartan
potassium and hydrochlorothiazide) (a combination of Cozaar and
hydrochlorothiazide that is marketed in Japan as Preminent™), a medicine for the
treatment of hypertension, increased 3% in the first three months of 2022
compared to the first three months of 2021, primarily due to favorable volume
demand resulting from competitors' supply disruptions in various markets.

Respiratory
                                        Three Months Ended March 31,                                           % Change Excluding
($ in millions)                          2022                   2021                   % Change                 Foreign Exchange
Singulair                         $           130          $        107                          21  %                        27  %
Nasonex                                        75                    43                          74  %                        80  %
Dulera                                         40                    38                           4  %                         4  %

Worldwide sales of Singulair, a once-a-day oral medicine for the chronic treatment of asthma and for the relief of symptoms of allergic rhinitis, increased 21% in the first three months of 2022 compared to the first three months of 2021, primarily attributable to volume recovery from the COVID-19 pandemic and demand resulting from competitors supply disruptions in Japan, China and the Middle East region.


Global sales of Nasonex, an inhaled nasal corticosteroid for the treatment of
nasal allergy symptoms, increased 74% in the first three months of 2022 compared
to the first three months of 2021, primarily driven by higher demand resulting
from competitors' supply disruptions in Japan, recovery from the COVID-19
pandemic in China, and increased demand in Brazil. In addition, sales during the
first three months of 2022 include a $10 million milestone payment related to a
regulatory approval.

Global sales of Dulera® (formoterol/fumarate dihydrate), a combination medicine
for the treatment of asthma, remained relatively flat in the first three months
of 2022 compared to the first three months of 2021.

Non-Opioid Pain, Bone and Dermatology

                                        Three Months Ended March 31,                                           % Change Excluding
($ in millions)                          2022                   2021                   % Change                 Foreign Exchange
Arcoxia                           $            60          $         56                           7  %                        12  %

Sales of Arcoxia™ (etoricoxib) (marketed outside of the United States), a medicine for the treatment of arthritis and pain, increased 7% in the first three months of 2022 compared to the first three months of 2021 primarily due to the higher demand in China and the Middle East region.

Other
                                        Three Months Ended March 31,                                           % Change Excluding
($ in millions)                          2022                   2021                   % Change                 Foreign Exchange
Proscar                           $            24          $         32                         (25) %                       (24) %


Worldwide sales of Proscar, a medicine for the treatment of symptomatic benign
prostate enlargement, declined 25% in the first three months of 2022 compared to
the first three months of 2021, primarily due to lower demand in China.

                                      -27-
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Costs, Expenses and Other
                                              Three Months Ended March 31,
($ in millions)                                     2022                   2021        % Change
Cost of sales                          $          561                    $   591           (5) %
Selling, general and administrative               371                        382           (3) %
Research and development                           96                         67           43  %
Restructuring costs                                 -                          1               *
Other (income) expense, net                        97                         (2)              *
                                       $        1,125                    $ 1,039            8  %

* Calculation not meaningful.

Cost of Sales


Cost of sales decreased 5% in the first three months of 2022, compared to the
first three months of 2021, primarily reflecting lower supply sales compared to
the prior year, as well as pre-spin allocated costs related to the Separation
incurred during the prior year which were not incurred during the three months
ended March 31, 2022.

Gross margin was 64% in the first three months of 2022 compared with 61% in the
first three months of 2021. The gross margin increase compared to the prior year
reflects lower margin supply sales as well as pre-spin allocated costs related
to the Separation incurred during the prior year which were not incurred during
the three months ended March 31, 2022.

Selling, General and Administrative

Selling, general and administrative expenses decreased 3% in the first three months of 2022 reflecting costs incurred in 2021 to establish Organon as a standalone entity, lower employee related costs, partially offset by higher selling and promotional costs.

Research and Development

Research and development expenses increased 43% in the first three months of 2022, primarily due to higher costs associated with the company's recent acquisitions of clinical stage assets and higher employee related costs.

Other (Income) Expense, Net


Other (income) expense, net increased $99 million in the first three months of
2022 compared with the first three months of 2021, primarily attributable to $97
million of interest expense related to long-term debt.

Taxes on Income


The effective income tax rates were 21.3% and 15.5% for the first quarter of
2022 and 2021, respectively, and reflect the beneficial impact of foreign
earnings, offset by the impact of U.S. inclusions under the Global Intangible
Low-Taxed Income regime. The effective income tax rate for the first quarter of
2021 also reflects the income tax benefit recognized in connection with the
conclusion of the Internal Revenue Service (IRS) examination of Merck's
2015-2016 U.S. federal income tax returns. As a result of that examination
conclusion, we reflected an allocation from Merck of $18 million in the
Consolidated Financial Statements representing our portion of the payment made
to the IRS. Our portion of reserves for unrecognized tax benefits for the years
under examination exceeded the allocated adjustments relating to this
examination period. Therefore, for the three months ended March 31, 2021, we
reflected a $29 million net tax benefit. This net benefit reflects reductions in
reserves for unrecognized tax benefits and other related liabilities for tax
positions relating to the years that were under examination.

Income/Loss from Discontinued Operations


The historical results of certain Merck non-U.S. legal entities that were
contributed to Organon in connection with the Separation included operations
related to other Merck products that were retained by Merck. The Merck Retained
Products business of the Transferred Entities were contributed by Organon to
Merck and its affiliates. Accordingly, the historical results of operations of
the Merck Retained Products have been reflected as discontinued operations in
the Condensed Consolidated Financial Statements for all periods presented.

There was no income or loss from discontinued operations, net of taxes for the
first three months of 2022. Income from discontinued operations, net of taxes,
for the first three months of 2021 was $4 million.

                                      -28-
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Analysis of Liquidity and Capital Resources

Liquidity and Capital Resources


At March 31, 2022, Organon had cash and cash equivalents of $694 million. The
Company has historically generated and expects to continue to generate positive
cash flow from operations. We plan to continue to fund our ongoing operating,
investing and financing requirements mainly through cash flows from operations,
available liquidity through cash on hand, available capacity under our Revolving
Credit Facility and access to capital markets.

Working capital of continuing operations was $1.4 billion at March 31, 2022 and
$1.2 billion in December 31, 2021. The increase in working capital of continuing
operations was primarily driven by a decrease in trade accounts payable,
partially offset a decrease in accounts receivable.

Cash provided by operating activities was $123 million in the first three months
of 2022 compared to $1.3 billion in the first three months of 2021. The decrease
in cash provided by operating activities in 2022 was primarily attributable to
the decrease in trade payables, including balances with Merck.

Cash used in investing activities was $63 million in the first three months of
2022 and $38 million in the first three months of 2021, primarily reflecting the
asset acquisition of Marvelon and Mercilon and capital expenditures.

Cash used in financing activities was $91 million in the first three months of
2022 and $1.1 billion in the first three months of 2021. The change in cash used
in financing activities reflects the settlement of the transactions with Merck
in connection with the Separation in 2021, partially offset by the payment of
dividends in the first quarter of 2022 (see Note 14 to our Condensed
Consolidated Financial Statements).

Our ability to fund our operations and anticipated capital needs is reliant upon
the generation of cash from operations, supplemented as necessary by periodic
utilization of our Revolving Credit Facility. Our principal uses of cash in the
future will be primarily to fund our operations, working capital needs, capital
expenditures, repayment of borrowings, payment of dividends and strategic
business development transactions.

In February 2022, the armed conflict between Ukraine and Russia escalated, which
may adversely impact Organon's business. Specifically, trade sanctions, travel
bans and asset and financial freezes announced by the United States, European
Union and other countries against Russian entities and designated individuals,
as well as counter-measures announced by Russia, have impacted and may continue
to impact many global businesses in direct and indirect ways (including, but not
limited to, product shipping delays, supply shortages, delays in regulatory
approvals and audits, currency exchange rates and exchange controls). Such
actions may negatively impact the financial institutions, vendors,
manufacturers, suppliers, partners and other third parties with whom Organon
conducts business. Organon will continue to monitor the impacts of the conflict,
which may negatively impact Organon's operations, financial position or cash
flows. For the quarter ended March 31, 2022 and the year ended December 31,
2021, Organon's combined revenues of Ukraine and Russia were approximately 2% of
total revenues. As of March 31, 2022, the Company's assets in Ukraine and Russia
are not material.

Our contractual obligations as of December 31, 2021, which require material cash
requirements in the future, consist of purchase obligations and lease
obligations. In addition, Organon is responsible for settlement of certain tax
matters, of which the Company expects to pay during 2022. Refer to "Management's
Discussion and Analysis of Financial Condition and Results of Operations in our
2021 Form 10-K for further details. As of March 31, 2022, there have been no
material changes to our contractual obligations, or settlements of tax matters
outside the ordinary course of business.

During the first quarter of 2022, Organon paid cash dividends of $0.28 per
share. In May 2022, the Board of Directors declared a quarterly dividend of
$0.28 for each issued and outstanding share of the Company's common stock. The
dividend is payable on June 16, 2022 to stockholders of record at the close of
business on May 16, 2022.

We believe that our financing arrangements, future cash from operations, and
access to capital markets will provide adequate resources to fund our future
cash flow needs.

Critical Accounting Estimates


Our significant accounting policies, which include management's best estimates
and judgments, are included in Note 3 to the Consolidated Financial Statements
included in our Form 10-K for the year ended December 31, 2021. See Note 2 to
the Condensed Consolidated Financial Statements for information on the adoption
of new accounting standards during 2022. There have been no changes to our
accounting policies as of March 31, 2022. A discussion of accounting estimates
considered critical because of the potential for a significant impact on the
financial statements due to the inherent uncertainty in such estimates are
disclosed in the Critical Accounting Estimates section of Management's
Discussion and Analysis of Financial Condition and Results of Operations
included in Organon's Form 10-K for the year ended December 31, 2021.

                                      -29-
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Recently Issued Accounting Standards

For a discussion of recently issued accounting standards, see Note 2 to the Condensed Consolidated Financial Statements.

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