Shares of Organon & Co (OGN) plummeted 24.48% in pre-market trading on Thursday following the release of disappointing first-quarter results and a significant dividend cut. The pharmaceutical company's performance fell short of expectations, prompting concerns among investors about its financial health and future prospects.

Organon reported a net income of $87 million for Q1 2025, a substantial decrease from $201 million in the same period last year. Revenue also declined by 6.7% to $1.51 billion, reflecting challenges across multiple segments of the business. While the Women's Health division saw a 10% increase in sales, reaching $463 million, both Biosimilars and Established Brands experienced significant declines of 17% and 11%, respectively.

In a move that further rattled investors, Organon's Board of Directors declared a drastically reduced quarterly dividend of $0.02 per share, down from the previous $0.28 per share. CEO Kevin Ali explained that this decision was part of a strategy to reset capital-allocation priorities and accelerate progress toward deleveraging. The company aims to achieve a net leverage ratio below 4.0x by year-end, signaling a shift in financial management focus. Despite the disappointing results, Organon reaffirmed its full-year revenue and Adjusted EBITDA margin guidance, targeting over $900 million in free cash flow before one-time costs.