Spin-off from Merck in mid-2021. Organon consists of women’s health business, off-brand drug portfolio, and biosimilars. Women’s Health & Biosimilars are the growth businesses (growing mid-single-digits or higher) and the established brands are facing ~3% price erosion annually.
Financials & Valuation
Estimates are at $2.2bn in 2022 EBITDA and $5.47 EPS — 8.3x EBITDA and 7.2x PE.
Competitors trade at a pretty wide range of multiples depending on their individual circumstances but 8-10x EBITDA and 8-13x PE seem to be the norm.
- At 9x EBITDA / 8.4x PE — OGN would be worth $46 per share (+18%)