Organon (OGN) said Monday its board has appointed the company's head of manufacturing and supply Joseph Morrissey as interim CEO.

Morrissey was most recently the head of Merck's (MRK) animal health global manufacturing and supply division, Organon said.

Kevin Ali, previously CEO, resigned after an audit discovered possible sales practice irregularities in certain quarters in 2022, 2024, and 2025. The board's audit committee launched the investigation after concerns were raised regarding Organon's wholesaler practices for its Nexplanon product, the company said. Ali has agreed to forego any severance or equity-related retirement benefits in connection with his resignation, Organon said.

Organon said it has fired its head of US commercial and government affairs and is taking remedial actions to improve its financial controls and address any material weaknesses. It added the findings to date do not necessitate a restatement or revision to any previously issued financial statements.

The company said its board is also starting a search for a permanent CEO.