Organon & Co. (NYSE: OGN) shares rose 6% on Friday morning following an announcement that the company's audit committee has wrapped up an independent review and found no evidence of improper conduct tied to past purchases of biosimilars from a supplier.
According to a filing with the Securities and Exchange Commission, the audit committee completed the probe with assistance from outside counsel. The committee concluded that no action is required as a result of its review.
The company said the independent review did not uncover any improper conduct related to the transactions under review. It added that the examination did not reveal any matters that would require corrections to Organon's previously issued financial statements or to the disclosures already included in its SEC filings.
The review was initiated after information was brought to the audit committee's attention on February 11 regarding the timing of the company's purchases of biosimilars from a supplier in prior years. Organon disclosed that it had launched the independent review on February 12.
In its filing, Organon also stated that it intends to timely file its Form 10-K for the year ended December 31, 2025.
Context and immediate market reaction
The audit committee's determination was followed by a positive move in Organon's stock price, with shares up roughly 6% in morning trading. The committee's statement, filed with the SEC, emphasized both the use of outside counsel in the independent review and the conclusion that no remedial action or adjustments to prior disclosures are necessary.
What the review covered
The probe focused on past purchases of biosimilars from a supplier and whether those transactions involved any improper conduct. The filing makes clear that no evidence of misconduct was found and no accounting or disclosure changes were deemed necessary based on the committee's findings.
Next steps disclosed by the company
Organon indicated its plan to timely file its annual Form 10-K for the year ended December 31, 2025, signaling an intention to stay current with its regulatory reporting obligations following the completion of the independent review.
Summary
The audit committee, aided by outside counsel, concluded an independent review into the timing and nature of prior biosimilar purchases and found no improper conduct or required adjustments to financial statements. The disclosure of those findings corresponded with a 6% rise in Organon shares on Friday morning.