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Organon stock tumbles after CEO resigns amid sales practice investigation

Published 27/10/2025, 13:04
© Reuters.
MRK
-0.35%
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Investing.com -- Organon (NYSE:OGN) stock plunged 18% after the company announced CEO Kevin Ali’s resignation following an internal investigation that uncovered improper wholesaler sales practices for its Nexplanon product.

The pharmaceutical company’s board has appointed Joseph Morrissey, Executive Vice President and Head of Manufacturing & Supply, as interim CEO while initiating a search for a permanent replacement. The investigation revealed that certain U.S. wholesalers were asked to purchase more Nexplanon than needed during multiple quarters in 2022, 2024, and 2025, enabling the company to meet guidance and revenue expectations.

While these sales represented less than 1% of Organon’s consolidated revenue for the years 2022 and 2024, the board determined the practices were improper and that certain prior company statements were inaccurate or incomplete. The company has also terminated its Head of U.S. Commercial & Government Affairs in connection with the investigation.

Board Chair Carrie S. Cox will take on additional responsibilities as Executive Chair to support Morrissey, while Director Robert Essner will assume the role of Lead Independent Director. The company stated that Ali will not receive severance or equity-related retirement benefits following his resignation.

Morrissey, who has led Organon’s global manufacturing and supply chain capabilities for over four years, previously spent more than 30 years at Merck & Co., Inc. in various 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 Quarterly Report on Form 10-Q for the third quarter of 2025 by the SEC deadline and will host a call to discuss financial results in connection with the filing.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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