Organon & Co. (NYSE:OGN) Q1 2024 Earnings Call Transcript

Balaji Prasad: Thank you. If I could just have a follow-up to it. I appreciate the detailed explanation. In light of this performance, the outlook, I thought guidance could have raised possibly, how conservative are you with the guidance retaining or reaffirming what you had said earlier? Thanks.

Matt Walsh: Yes. So we were certainly encouraged by the first quarter performance really across all of our franchises, Balaji. But the thing that we were considering most when thinking about what to do with guidance was really what’s going on with foreign exchange. The dollar is persistently strong. When we created our initial guidance in 2024, the euro was somewhere between EUR1.08 and EUR1.09 it since come back. And so like we said in the prepared comments, when we look at the nuts and bolts aspects of our top line revenue, we’re actually up on constant currency basis. And it’s really just the FX dynamic that is causing us to be a little bit reticent about raising guidance this early in the year. We’ll revisit this when we issue Q2 results. But once again, the performance in first quarter gives us a lot of confidence in the initial guidance that we gave, and we’re just optimistic as we lag into the second quarter here.

Balaji Prasad: Thank you.

Operator: That concludes our question-and-answer session. I would now like to turn the call back over to Kevin Ali for closing remarks.

Kevin Ali: I want to thank you. I want to close today’s call by essentially repeating what I began today’s call with, namely that we came into 2024. Looking at it as a year to focus on execution delivering on our projections, improving our financial positioning and of course, building for our future pipeline. And through Q1, we can definitely say that we’re progressing well towards those goals. And I want to thank all of you for a great discussion today, and we look forward to continuing engagement.

Operator: This concludes today’s call. You may now disconnect.