OGN 5.125 04/30/2031

Organon & Co

Credit, Healthcare


Publicly traded companies mentioned herein: Merck & Co Inc (MRK), Organon & Co (OGN)

Highlights

The presenter is short the 2031 unsecured bonds of Organon & Co (OGN), which is largely comprised of two segments: Women’s Health and Established Brands. Women’s Health is anchored by Nexplanon, a women’s contraceptive that is patent-protected in the EU and the US until 2025 and 2027, respectively. The Established Brands portfolio generates ~$4B of revenues mostly from generic drugs and has historically declined at a MSD%+ rate. Based on Nexplanon’s patent expiration and Established Brands returning to its ~5% annual decline, he models $900MM – $1.2B of EBITDA in 2028. In that scenario, he would expect the spread to widen from 470bps to 600bps – 800bps.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.