Karissa Peer Investor Contacts: Jennifer Halchak (614) 314-8094 Kate Vossen (732) 675-8448 (201) 275-2711 Edward Barger (267) 614-4669 Organon reports results for the second quarter ended

Organon reports results for the second quarter

Jersey City, N.J., August 4, 2022 - Organon (NYSE: OGN)

(the "company"), today announced its results for the second quarter ended June 30, 2022.

"During the second quarter, Organon delivered constant currency

growth across all our reported geographies and in all three franchises. Our Established Brands franchise grew in almost every therapy

area, demonstrating the sustainability and untapped potential of these brands," said Kevin Ali, Organon's Chief Executive Officer.

"Additionally, we continued to invest for growth during the quarter adding Shanghai Henlius Biotech as another R&D and manufacturing

collaborator for biosimilars, underscoring our commitment to this business. And importantly, we further expanded our offerings in Women's

Health recently signing a research collaboration with Cirqle Biomedical for a novel investigational non-hormonal, on-demand contraceptive

Second quarter 2022 revenues

includes manufacturing sales to Merck & Co., Inc., Rahway, NJ, USA and other third parties, and allocated amounts from pre-spin

revenue hedging activities.

Total net revenues were $1,585 million for the second quarter of 2022,

a decrease of 1% as-reported and an increase of 5% excluding the impact of foreign currency (ex-FX), compared with the second quarter

Women's Health declined 2% as-reported, but increased 1% ex-FX

in the second quarter of 2022 compared with the second quarter of 2021. During the second quarter of 2022, Nexplanon (etonogestrel

implant) grew 8% ex-FX, primarily driven by favorable pricing and demand uptake in the United States and volume growth outside the United

States. Nuvaring (etonogestrel/ethinyl estradiol vaginal ring) continues to be impacted by generic competition and declined

18% ex-FX in the second quarter of 2022 compared with the prior year period. Follistim AQ (follitropin beta injection), declined

9% ex-FX in the second quarter of 2022, primarily due to COVID-related disruptions in China and an unfavorable channel mix in the United

States, that offset solid demand.

Biosimilars revenue grew 39% as-reported and 42% ex-FX in the second

quarter 2022 compared with the second quarter of 2021. Organon's current portfolio includes certain immunology and oncology treatments.

All five of the biosimilars in Organon's portfolio have launched in certain countries globally, including two biosimilars, Renflexis

(infliximab-abda) and Ontruzant (trastuzumab-dttb), in the United States. Renflexis grew 39% ex-FX in the second quarter

of 2022 compared with the prior year period, primarily due to continued demand growth in the United States since its launch in 2017. Ontruzant

grew 61% ex-FX driven by timing of an order in Brazil, as well as continued uptake in the United States since its launch in July 2020,

partially offset by increased competition in Europe.

Established Brands represents a broad portfolio of well-known medicines,

which are generally beyond market exclusivity, including leading brands in cardiovascular, respiratory, dermatology and non-opioid pain

management, and for which generic competition varies by market. The portfolio's exposure to loss of exclusivity (LOE) risk peaked in 2021

and no longer represents a significant impediment to stable performance in the Established Brands franchise. Revenues for Established

Brands decreased 2% as-reported and increased 4% ex-FX in the second quarter of 2022 compared with the second quarter of 2021. During

the second quarter of 2022, the cardiovascular portfolio grew 3% ex-FX primarily driven by strong Atozet TM (ezetimibe and

atorvastatin calcium) sales in Europe and Cozaar (losartan potassium) /Hyzaar (losartan potassium and hydrochlorothiazide) sales

in China. The Established Brands franchise also benefited from a continuation of a temporary supply disruption affecting several competitors

in the Japanese market, most notably in the respiratory portfolio. Year to date, the franchise has not experienced significant impacts

from the implementation of Volume Based Procurement (VBP) in China, which the company expects will be more pronounced in the second half

of 2022. Still, based on the strong year to date performance, the company expects the Established Brands franchise to deliver relatively

flat constant currency revenue growth for the full year 2022.

Second quarter 2022 profitability

Organon was spun-off from Merck & Co., Inc., Rahway,

NJ, USA on June 2, 2021. Financial results during the pre-spin period were presented on the carve-out basis of accounting and do

not purport to reflect what Organon's financial results would have been had Organon operated as a standalone public company. Therefore,

with the exception of revenue, financial results for the periods ending June 30, 2022 and June 30, 2021 are not meaningfully

Tables 4,5 and 6 for reconciliations of GAAP to non-GAAP financial measures

EBITDA and Adjusted EBITDA margin include $97 million in the second quarter of 2022 related to acquired IPR&D and milestones

Gross margin in the second quarter of 2022 was 62.9% as-reported, and

comparable to 63.4% in the prior year period. Adjusted Gross Margin was 66.1% in the second quarter of 2022 compared with 65.6% on an

adjusted basis in the second quarter of 2021.

Adjusted EBITDA margin was 32.3% in the second quarter of 2022 compared

with 39.3% in the second quarter of 2021. Adjusted EBITDA margin in the second quarter of 2022 is inclusive of $97 million of acquired

IPR&D and milestones. Higher R&D spend associated with the company's recent acquisitions of clinical stage assets as well as higher

employee related costs contributed to the decline in Adjusted EBITDA margin year over year.

Net income from continuing operations for the second quarter of 2022

was $234 million, or $0.92 per diluted share, compared with $431 million, or $1.70 per diluted share, in the second quarter of 2021. Non-GAAP

Adjusted net income from continuing operations was $319 million, or $1.25 per diluted share, compared with $437 million, or $1.72 per

diluted share, in 2021.

Beginning in 2022, Organon will no longer exclude expenses for upfront

and milestone payments related to collaborations and licensing agreements, or charges related to pre-approval assets obtained in transactions

accounted for as asset acquisitions from its non-GAAP results. The change to include all acquired IPR&D and milestone expenses negatively

impacted Adjusted diluted EPS by $0.30 in the second quarter of 2022. There was no similar impact in the second quarter of 2021. In connection

with this change, acquired IPR&D expenses are now reported as a separate income statement line item. These costs were previously recorded

within the R&D expenses line. Prior period amounts have been revised to conform to the current period presentation.

Today, Organon's 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 September 15,

2022 to stockholders of record at the close of business on August 15, 2022.

As of June 30, 2022, cash and cash equivalents were $545 million,

and debt was $8.9 billion. Total debt as of June 30, 2022 reflects a discretionary second quarter prepayment of $100 million on the

company's U.S. dollar denominated term loan.

Organon does not provide GAAP financial measures on a forward-looking

basis because the company cannot predict with reasonable certainty and without unreasonable effort, the ultimate outcome of legal proceedings,

unusual gains and losses, the occurrence of matters creating GAAP tax impacts, and acquisition-related expenses. These items are uncertain,

depend on various factors, and could be material to Organon's results computed in accordance with GAAP.

The company is updating its full year 2022 guidance ranges previously

provided on May 5, 2022. The range for full year 2022 revenue is narrowed to $6.1 billion to $6.3 billion, which reflects persisting

foreign exchange headwinds. The range for full year Adjusted EBITDA margin is now 32% to 34% to incorporate approximately $110 million

of IPR&D and milestone expenses from business development through August 4, 2022. Organon's financial guidance does not assume

an estimate for future IPR&D and milestone payments for business development transactions not yet executed.

host a conference call at 8:30 a.m. Eastern Time today to discuss its second quarter 2022 financial results. To listen to the event

and view the presentation slides via webcast, join from the Organon Investor Relations website at https://www.organon.com/investor-relations/.

A replay of the webcast will be available approximately two hours after the conclusion of the live event on the company's website.

Institutional investors and analysts interested in participating in the call must register in advance using conference ID# 58511-993

and by clicking on this link: https://conferencingportals.com/event/ZGyfDfjk. Following registration, participants will receive

a confirmation email containing details on how to join the conference call, including dial-in information and a unique passcode and registrant

ID. Pre-registration will allow participants to bypass an operator and be placed directly into the call.

Organon is a global healthcare company formed to focus on improving

the health of women throughout their lives. Organon has a portfolio of more than 60 medicines and products across a range of therapeutic

areas. Led by the women's health portfolio coupled with an expanding biosimilars business and stable franchise of established medicines,

Organon's products produce strong cash flows that will support investments in innovation and future growth opportunities in women's

health. In addition, Organon is pursuing opportunities to collaborate with biopharmaceutical innovators looking to commercialize their

products by leveraging its scale and presence in fast growing international markets.

Organon has a global footprint with significant scale and geographic