Organon announced that CEO Kevin Ali intends to resign from his position following results from an internal investigation where an audit committee discovered that select U.S. wholesalers were asked to purchase additional Nexplanon at the end of several quarters between 2022 and 2025.¹ Ali has been a part of Organon since its conception in 2021.

Organon made a statement following the announcement, saying, "While the findings to date do not necessitate a restatement or revision to any previously issued financial statements, the company is taking remedial actions to improve its financial controls and address any material weaknesses."

What were Organon’s improper practices?

According to a report from Reuters, the investigation’s findings suggest that Organon encouraged US-based wholesalers to purchase “more than necessary” amounts of its contraceptive implant, Nexplanon, in exchange for incentive fees connected to inventory management metrics. Organon reportedly participated in this during the end of 2022’s fourth quarter, the third and fourth quarters of 2024 and the first, second and third quarters of 2025.² According to Organon’s press release, the investigation yielded results showing that these sales represented less than 1% of the company’s consolidated revenue for 2022, and 2024, yet the metrics enabled Organon to meet guidance, and certain external revenue expectations.

What is Organon’s next steps?

Following the announcement of Ali’s resignation, Organon’s executive vice president and head of manufacturing and supply, Joseph Morrissey, is expected to step in as interim CEO during the company’s search for a long-term leader.¹ The company also announced that board chair, Carrie Cox, is expected to assume additional responsibilities as executive chair to support Morrissey.

“The Board has confidence in Joe Morrissey’s ability to drive operational excellence,” said Cox. “Joe has extensive experience in senior leadership roles and is a highly regarded leader inside the organization.”

According to a report from Reuters, Organon also revealed it has terminated its head of U.S. commercial & government affairs following the results of its investigation, while also intending to file its third-quarter filing on time.

“Carrie’s deep experience leading global pharmaceutical businesses, coupled with her extensive Board experience, will complement Joe’s skills and make her the right partner to assist Joe in leading the company forward. We thank both Joe and Carrie for stepping up to lead our company during this period and believe they have the integrity, skills and experience to continue executing on our strategy to drive Organon’s business,” said Robert Essner, board member.

Joseph Morrissey’s statement following appointment of interim CEO

“I look forward to continuing to execute on Organon’s business strategy, including further delivering the business and driving cost savings while achieving revenue growth,” said Morrissey. “We believe Organon’s focus on operational execution, especially around our growth pillars, as well as reducing our debt ratios will drive long-term shareholder value.”

Sources

1. Organon CEO Kevin Ali to resign after probe into contraceptive sales Reuters October 27, 2025 https://www.reuters.com/business/healthcare-pharmaceuticals/organon-ceo-kevin-ali-resign-after-probe-into-wholesaler-sales-practices-2025-10-27/
2. Organon Appoints Company Executive Joseph Morrissey as Interim CEO and Board Chair Carrie Cox as Executive Chair; Announces Results of Audit Committee Investigation Organon October 27, 2025 https://www.businesswire.com/news/home/20251027288395/en/Organon-Appoints-Company-Executive-Joseph-Morrissey-as-Interim-CEO-and-Board-Chair-Carrie-Cox-as-Executive-Chair-Announces-Results-of-Audit-Committee-Investigation