When a stock falls steadily on no news, that is a hint to avoid the company. Organon (OGN), a spin-off from Merck (MRK), continued to trade at a discount after posting results. The firm cut its dividend on May 1.
Organon posted a 7% Y/Y drop in revenue, to $1.51 billion. Despite reaffirming its 2025 revenue and $900 million in free cash flow, it announced a dividend cut.
OGN stock will pay $0.02 a share in dividends, compared to a previous rate of $0.28 a share. CEO Kevin Ali said that the company reset its capital allocation priorities. Instead, it will accelerate its deleveraging efforts. It is using its cash flow to pay down its debt. Asian markets are Organon’s weakest areas. OGN’s sales in China fell by 1% Y/Y. In Japan, revenue fell by 13% Y/Y.
Regeneron (REGN) trades at half of its 52-week high at $1,200. Revenue from Eylea caused the firm to miss analyst revenue estimates. Net product sales of Eylea/HD were $1.9 billion. Dupixent sales, marketed with Sanofi (SNY), accounted for $3.7 billion in sales.
Unfortunately, non-GAAP net income fell by 14% Y/Y to $8.22.
Regeneron plans to spend $7 billion. It is expanding its infrastructure and manufacturing in New York and North Carolina. While this might alleviate tariff-related uncertainties, REGN stock is not an attractive holding at this time.
