Organon (NYSE:OGN) shares fell 18% on Monday after the company announced that CEO Kevin Ali has resigned following the results of an internal investigation into improper wholesaler sales practices involving its Nexplanon product.
The board has appointed Joseph Morrissey, Executive Vice President and Head of Manufacturing & Supply, as interim CEO and launched a search for a permanent replacement. The probe revealed that during multiple quarters in 2022, 2024, and 2025, certain U.S. wholesalers were encouraged to purchase more Nexplanon than necessary, helping the company meet its revenue and guidance targets.
Although these transactions represented less than 1% of Organon’s consolidated revenue in 2022 and 2024, the board concluded that the practices were inappropriate and that some prior company statements were inaccurate or incomplete. In connection with the findings, Organon also terminated its Head of U.S. Commercial & Government Affairs.
Board Chair Carrie S. Cox will take on additional duties as Executive Chair to support Morrissey, while Director Robert Essner will serve as Lead Independent Director. The company also stated that Ali will not receive severance or equity-related retirement benefits following his departure.
Morrissey, who has overseen Organon’s global manufacturing and supply chain operations for more than four years, previously spent over three decades at Merck & Co., Inc. in senior leadership roles.
“I look forward to continuing to execute on Organon’s business strategy, including further delevering the business and driving cost savings while achieving revenue growth,” said Morrissey in the company’s statement.
Organon plans to file its third-quarter 2025 Form 10-Q with the U.S. Securities and Exchange Commission by the deadline and will host a call to discuss its financial results at that time.