Organon CEO Kevin Ali resigns after Nexplanon sales investigation uncovers overordering by US wholesalers

Organon's CEO Kevin Ali has resigned following an internal investigation that found improper sales practices involving the Nexplanon contraceptive implant. The probe revealed that some U.S. wholesalers were asked to purchase more Nexplanon than needed in multiple quarters from 2022 through 2025, which helped the company meet revenue guidance despite representing less than 1% of annual revenue. The company's board deemed these practices improper and acknowledged that some prior public statements were inaccurate or incomplete, though a restatement of financial results is not required. Ali will not receive severance or equity-related retirement benefits and has been replaced on an interim basis by Joseph Morrissey, the executive vice president and head of manufacturing and supply. Organon is taking remedial actions to strengthen financial controls and has terminated the employment of its head of U.S. commercial and government affairs, with no evidence that the CFO was aware of the issues. Board Chair Carrie Cox will also assume the role of executive chair to support the interim CEO during the search for a permanent replacement.