Organon CEO Kevin Ali Resigns Amid Sales Practices Scandal
Organon CEO Kevin Ali has stepped down following an internal investigation into improper sales practices involving the company's Nexplanon contraceptive implant. The probe revealed that between 2022 and 2025, certain U.S. wholesalers were encouraged to purchase more Nexplanon than necessary at the end of fiscal quarters, a tactic used to meet revenue expectations. Although these practices accounted for less than 1% of annual revenue during 2022 and 2024, they led to a 23% drop in Organon's stock price in premarket trading.
Leadership Transition
Joseph Morrissey, Organon's Executive Vice President and Head of Manufacturing and Supply, has been appointed as interim CEO. Morrissey, a former Merck executive with over 30 years of experience, will assume the role immediately. Carrie Cox, the company's Board Chair, will take on additional responsibilities as Executive Chair to support Morrissey during this transition. Organon has initiated a search for a permanent CEO.
Company Response and Future Steps
In response to the findings, Organon has terminated the employment of its Head of U.S. Commercial & Government Affairs. The company is implementing remedial actions to strengthen financial controls and address any material weaknesses. Despite the internal investigation, Organon stated that the findings do not necessitate a restatement or revision of previously issued financial statements. The company plans to file its third-quarter report on schedule.
As part of his resignation, Kevin Ali has agreed to forgo severance and equity-related retirement benefits. Organon remains committed to upholding the highest standards of corporate governance and transparency as it navigates this leadership change.
This incident underscores the critical importance of ethical sales practices and robust internal controls in maintaining investor confidence and regulatory compliance.
Kevin Ali
Organon CEO Resignation: Quick Answers
Who is Kevin Ali and why did he resign?
Kevin Ali was Organon’s CEO until October 2025. He stepped down after an internal investigation found that some U.S. wholesalers were pressured to buy extra Nexplanon contraceptive implants at quarter-end to meet revenue targets.
How serious was the issue?
The practices affected less than 1% of annual revenue between 2022 and 2024, but the news caused Organon’s stock to drop 23% in premarket trading, highlighting investor concern.
Who’s running the company now?
Joseph Morrissey, Organon’s Executive VP and Head of Manufacturing and Supply, is interim CEO, with Board Chair Carrie Cox providing executive support during the transition.
Were there any financial consequences for executives?
Kevin Ali agreed to forgo severance and equity-related retirement benefits, and the company terminated the Head of U.S. Commercial & Government Affairs as part of remedial action.
