Organon (NYSE: OGN) announced the appointment of Joseph Morrissey, the company's Executive Vice President and Head of Manufacturing & Supply, as the interim Chief Executive Officer, following the resignation of Kevin Ali. Board Chair Carrie S. Cox will take on additional responsibilities as the interim Executive Chair. These appointments come in the wake of an audit committee investigation into the company's wholesaler sales practices for its Nexplanon® product.
The investigation found that certain wholesalers in the United States were asked to buy more Nexplanon than they needed during specific quarters in 2022, 2024, and 2025. These sales represented less than 1% of the company’s consolidated revenue for the respective years, but enabled Organon to meet guidance and/or certain external revenue expectations. The company's board determined that these sales practices were improper and certain prior statements were inaccurate or incomplete. As a result, the company is taking remedial actions to improve its financial controls and address any material weaknesses.
In connection with the investigation, the company terminated the employment of its head of U.S. Commercial & Government Affairs. However, there has been no finding that the company’s Chief Financial Officer was aware of the improper wholesaler sales practices.
Organon is now initiating a search for a permanent CEO, including both internal and external candidates, and is retaining a search firm to assist with the process.
Joseph Morrissey, who has over 30 years of experience, expressed his commitment to executing Organon’s business strategy, focusing on operational execution, reducing debt ratios, and driving long-term shareholder value.
Looking ahead, the company intends to timely file its quarterly report on Form 10-Q for the quarter ended September 30, 2025, and plans to host a call and webcast to discuss third quarter 2025 financial results in connection with the filing of its Form 10-Q.
Organon, a global healthcare company, has a portfolio of over 70 products across women’s health and general medicines, including biosimilars, and is committed to advancing access, affordability, and innovation in healthcare.
The company's stock price on the NYSE is expected to reflect investor sentiment and market reactions to these developments in the coming days. The market has reacted to these announcements by moving the company's shares 1.22% to a price of $9.16. If you want to know more, read the company's complete 8-K report here.
