Organon & Co (OGN) shares plummeted 24.48% in pre-market trading on Thursday following the release of its first-quarter 2025 financial results. The pharmaceutical company reported disappointing earnings and revenue figures, alongside a significant cut to its quarterly dividend.

For the first quarter ended March 31, Organon reported net income of $87 million, down from $201 million in the same period last year. Revenue fell 6.7% to $1.51 billion, while adjusted earnings per share (EPS) came in at $1.02, lower than the $1.22 reported a year ago. Despite beating analyst expectations, the year-over-year decline in performance has sparked investor concerns.

Adding to the negative sentiment, Organon announced a drastic reduction in its quarterly dividend from $0.28 to $0.02 per share. CEO Kevin Ali explained that this decision was made to reset capital-allocation priorities and accelerate progress toward deleveraging. The company is now focusing on achieving a net leverage ratio below 4.0x by year-end. While Organon reaffirmed its full-year revenue and Adjusted EBITDA margin guidance, the dividend cut and weaker quarterly results have clearly shaken investor confidence, leading to the significant stock price decline.