A global pharmaceutical company focused on women's health, with products from the contraceptive implant Nexplanon and the fertility drug Follistim AQ to biosimilars like Hadlima, sold across more than a hundred countries. The name comes from the Ancient Greek word for "an instrument for acquiring knowledge," the title of Aristotle's writings on logic. Founded in 1923 in the Netherlands to make insulin, the company was spun off from Merck in 2021, returning to its women's-health roots.
Nexplanon decline slows to 4% but Follistim drops 19% on price cuts, while the Sun Pharma merger clears a stockholder vote.
The Nexplanon decline eased from 19% to 4%, but a new competitive threat hit Follistim. fell 2% to $1.56 billion and contracted half a point to 54.4% as unfavorable product mix and pricing offset lower restructuring costs. The Sun Pharma buyout at $14 a share won stockholder approval in July, leaving deal closure as the only story that matters.
Key takeaways
Nexplanon fell 4% to approximately $238 million, a sharp deceleration from the 19% drop in Q1 2026, as the five-year label approval continued to delay U.S. reinsertions but the rate of decline moderated.
Follistim AQ dropped 19% on competitive price cuts, a new for the Women's Health that had previously relied on Follistim growth to offset Nexplanon pressure.
Biosimilars performance diverged: Hadlima rose 59% on strong U.S. demand, while Ontruzant fell 81% due to lower Brazil Ministry of Health tender volume, leaving the 's net contribution roughly flat.
Section summaries
Management's Discussion and Analysis
Q2 2026 sales fell 2% to $1.56B; gross profit declined 3% on unfavorable mix, while lower interest and restructuring costs aided net income.
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Worldwide sales decreased 2% (5% ex-FX) to $1.56B in Q2, driven by declines in Ontruzant, Singulair, and the divested Jada System, partially offset by Hadlima and Zetia/Vytorin growth.
Women's Health fell, with Nexplanon down 4% on delayed U.S. reinsertions and Follistim AQ down 19% on competitive price cuts, while Jada sales ceased after its January 2026 divestiture.
contracted 0.5 points to 54.4%, as unfavorable volume, pricing, and product mix more than offset the benefit of lower restructuring costs and headcount reductions.
fell 20% to $183 million, but the decline was amplified by a $29 million swing in other expense that included a $17 million Dermavant charge; SG&A and R&D each fell on restructuring savings.
The pending acquisition by Sun Pharma for $14 per share received stockholder approval in July 2026 and is expected to close in early 2027; failure to close would trigger a $120 million and raise substantial doubt about the company's ability to continue as a .
What changed
Nexplanon's decline slowed to 4% in Q2 2026 from 19% in Q1 2026, suggesting the five-year label adjustment may be a one-time reset rather than the start of a sustained downward trend, though the rate remains negative.
Follistim AQ swung from growth in prior periods to a 19% decline on competitive price cuts, a new risk that was not flagged in earlier filings and that removes a counterbalance to Nexplanon weakness within Women's Health.
stabilized near 54% for a second consecutive quarter at 54.4%, after falling to 53.6% in Q1 2026, suggesting the steep multi-year decline from above 60% may be finding a floor as restructuring savings begin to offset mix headwinds.
The Sun Pharma merger, flagged in Q1 2026 as a going-concern risk if it fails, advanced with stockholder approval in July; the deal remains the dominant forward-looking variable for the company.
What to watch
Whether the Sun Pharma merger closes on the expected early-2027 timeline, and whether any regulatory or financing conditions emerge that could delay or block the deal.
Nexplanon's trajectory in Q3 2026, to determine whether the 4% decline represents a new baseline or whether the five-year label continues to erode the reinsertion cycle.
Whether Follistim AQ's 19% decline is a one-quarter competitive event or the start of a sustained pricing war that further weakens the Women's Health .
The level of in Q3 2026, to assess whether the $332 million H1 2026 level is sustainable and whether the company continues discretionary debt reduction ahead of the 2028 maturities.
Biosimilars performance was mixed: Hadlima surged 59% on strong U.S. demand, while Ontruzant plunged 81% due to lower Brazil Ministry of Health tender volume.
decreased 3% to $847M on unfavorable volume, pricing, and product mix; SG&A and R&D expenses fell 4% and 5%, respectively, reflecting headcount reductions from restructuring.
dropped 18% to $108M due to debt repurchases and lower variable rates; Other expense swung to a $29M loss, including a $17M Dermavant charge.
rose to $332M for H1 2026; the pending $14/share Sun Pharma acquisition received stockholder approval in July and is expected to close in early 2027.
Quantitative and Qualitative Disclosures About Market Risk
There have been no changes to our market risk during the quarter ended June 30, 2026. For a discussion of our exposure to market risk, refer to our market risk disclosures set forth under Item 7A.—Quantitative and Qualitative Disclosures About Market Risk in our Annual Report on…
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There have been no changes to our market risk during the quarter ended June 30, 2026. For a discussion of our exposure to market risk, refer to our market risk disclosures set forth under Item 7A.—Quantitative and Qualitative Disclosures About Market Risk in our Annual Report on Form 10-K for the year ended December 31, 2025.
The information called for by this Item is incorporated herein by reference to Note 15 “Contingencies” to the Condensed Consolidated Financial Statements included in Part I, Item. 1.
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The information called for by this Item is incorporated herein by reference to Note 15 “Contingencies” to the Condensed Consolidated Financial Statements included in Part I, Item. 1.
There have been no material changes in our risk factors from those disclosed in Item 1A. Risk Factors, in our Annual Report on Form 10-K for the year ended December 31, 2025 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2026.
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There have been no material changes in our risk factors from those disclosed in Item 1A. Risk Factors, in our Annual Report on Form 10-K for the year ended December 31, 2025 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2026.