Organon, Merck’s women’s health spinoff, has been operating independently for only two months. In the midst of a global pandemic, that hasn’t been easy, but the budding drugmaker has so far delivered early results that have Wall Street’s attention. Organon pleasantly surprised investors when it announced nearly $1.6 billion in revenue in its first reported quarter as an independent company, exceeding forecasts and driving its stock up more than 13%.
Organon top brass warned that pandemic turbulence could emerge in the second half of the year, which is in line with pharma companies‘ excellent showing over the previous three months. Organon early success was fueled by its biosimilars business and significant revenue growth for the contraceptive implant Nexplanon and the infertility therapy Follistim. Nexplanon brought in $184 million globally, while Follistim brought in $65 million, representing a 40 percent increase year over year.
Nexplanon has had a difficult road to recovery from its pandemic downturn, despite now being at the top of the drugmaker’s women’s health portfolio. While there was an increase in doctor visits this quarter, Walsh said they are still not back to pre-pandemic levels. Organon resurgence has been mostly due to its infertility business versus contraception.