Listen to this articleThe basics:
- CEO Kevin Ali resigns amid Nexplanon sales investigation
- Joseph Morrissey appointed interim CEO; Carrie Cox becomes executive chair
- Investigation found some improper wholesaler sales; <1% of total revenue
- Organon implementing remedial actions to strengthen financial controls
Organon announced significant leadership changes Oct. 27 as part of its response to an internal investigation into improper sales practices related to its Nexplanon product.
The company’s board of directors appointed Joseph Morrissey, executive vice president and head of manufacturing & supply, as interim CEO, effective immediately. Board Chair Carrie Cox will also take on expanded responsibilities as executive chair. Meanwhile, Director Robert Essner assumes the role of lead independent director.
These appointments follow the resignation of CEO Kevin Ali, who also stepped down from the board in connection with company Audit Committee findings. Jersey City-based Organon confirmed Ali will not receive severance or equity-related retirement benefits as part of his departure.
Led by the board’s Audit Committee, the investigation reviewed concerns about wholesaler sales practices for Nexplanon, Organon’s contraceptive implant. It found that some wholesalers in the U.S. were encouraged to purchase more product than needed during several quarters — specifically at the end of the fourth quarter 2022, Q3 and Q4 2024, and Q1–Q3 2025.
While these sales represented less than 1% of Organon’s total revenue for 2022 and 2024, the practice helped the company meet guidance and external revenue expectations.
Looking ahead
The board determined that the sales tactics were improper and that some prior company statements were inaccurate or incomplete, though current findings do not require restating any financial statements.
Organon says it is now taking remedial actions to strengthen financial controls and address internal weaknesses. The company also terminated its head of U.S. Commercial & Government Affairs.
The investigation found no evidence that the CFO was aware of the practices.
“The Board has confidence in Joe Morrissey’s ability to drive operational excellence,” said Cox. “Joe has extensive experience in senior leadership roles and is a highly regarded leader inside the organization.”
“Carrie’s deep experience leading global pharmaceutical businesses, coupled with her extensive Board experience, will complement Joe’s skills and make her the right partner to assist Joe in leading the company forward,” said Essner. “We thank both Joe and Carrie for stepping up to lead our company during this period and believe they have the integrity, skills and experience to continue executing on our strategy to drive Organon’s business.”
The search is on
Morrissey has served as head of Organon’s global manufacturing and supply capabilities for over four years. He joined the company in 2021 after more than 30 years at Merck — the same year that Rahway-based company spun out the women’s health segment.
“I look forward to continuing to execute on Organon’s business strategy, including further delivering the business and driving cost savings while achieving revenue growth,” said Morrissey. “We believe Organon’s focus on operational execution, especially around our growth pillars, as well as reducing our debt ratios will drive long-term shareholder value.”
Organon said its board will launch a search for a permanent CEO. It will consider both internal and external candidates – while also retaining a search firm to assist with the process.
The company expects to file its third quarter 2025 Form 10-Q on time as well as plans to host a call and webcast to discuss its results following the filing. Additional details are available in Organon’s Form 8-K filed with the U.S. Securities and Exchange Commission (SEC) Oct. 27, 2025.
Representatives for Ali could not be immediately determined.
Editor’s note: This story was updated to note NJBIZ could not reach a representative for a statement from Kevin Ali.
