Organon & Co. CEO Kevin Ali to resign after internal probe into wholesaler sales practices.
Organon & Co. CEO Kevin Ali to resign after internal probe into wholesaler sales practices.
Organon & Co. announced that its Chief Executive Officer, Kevin Ali, will step down following an internal investigation into sales practices within the company’s U.S. wholesale channel. The probe revealed irregularities involving the company’s contraceptive implant product, Nexplanon.
The investigation determined that between 2022 and 2025, certain U.S. wholesalers were encouraged to purchase more Nexplanon inventory than needed at the end of several financial quarters. While the issue accounted for less than one percent of the company’s consolidated annual revenue for 2022 and 2024, it raised concerns about internal controls and ethical compliance.
Organon stated that the findings do not require any restatement of previously issued financial statements. However, the company plans to implement several remedial measures to strengthen its governance and oversight systems to ensure transparency in its sales and distribution processes.
Kevin Ali’s resignation is effective immediately. He will not receive severance payments or equity-related retirement benefits as part of his departure. Joseph Morrissey, Executive Vice President and Head of Manufacturing & Supply, has been appointed as Interim CEO. The company’s Board Chair, Carrie Cox, will assume additional responsibilities as Executive Chair until a permanent CEO is appointed.
Following the announcement, the company’s shares saw a significant decline in pre-market trading, reflecting investor concern over the leadership transition and internal control issues.
Despite the limited financial impact, the resignation highlights the importance of ethical conduct and accountability within the pharmaceutical sector. Organon, which has positioned itself as a global leader in women’s health, faces the challenge of restoring investor confidence while maintaining its operational stability and reputation for integrity.
The company has assured stakeholders that it will continue to prioritize compliance, reinforce its internal audit framework, and strengthen relationships with its partners as it moves forward under interim leadership.