Organon Shares Rally as Investigation Clears Company of Wrongdoing

Investors in Organon & Co. breathed a collective sigh of relief last week. An independent review found no evidence of misconduct related to the company’s purchases of biosimilar medicines, lifting a cloud of uncertainty that had been hanging over the stock. The clearance allows management to refocus on its core strategic and financial objectives.

Share Price Responds Positively

The market’s reaction to the news was swift and positive. On Friday, Organon’s share price jumped approximately 7.6%, closing at €6.88. Despite this significant single-day gain, the equity remains well below its 52-week high of €15.35, reflecting the broader challenges the company has faced over the past year.

For shareholders, attention now turns to Monday, February 23, 2026. This date is both the ex-dividend date and the record date for the upcoming quarterly cash dividend of $0.02 per share. The payment for this dividend is scheduled for March 12. The company’s financial reporting schedule is now back on track, with its 2025 annual report expected to be filed on time and first-quarter 2026 results anticipated in early May.

Investigation Finds No Financial Restatements Needed

The probe, which was overseen by the Board of Directors’ Audit Committee with the support of external advisors, has been concluded. It focused on supply agreements from prior years that were initially brought to light in mid-February 2026. The committee’s definitive finding was that no adjustments to previously issued financial statements or regulatory filings are necessary.

Should investors sell immediately? Or is it worth buying Organon & Co?

This outcome removes the risk of costly restatements and allows the leadership team to concentrate fully on operational execution.

Strategic Priorities: Debt Reduction and Biosimilars

With the investigation closed, Organon is sharpening its focus on financial stability. A central goal for the 2026 fiscal year is the reduction of net debt. A major step toward this was achieved in January with the sale of the JADA® System, which generated approximately $390 million in proceeds. Management has stated these funds will be allocated specifically to debt repayment.

The company is targeting a leverage ratio—measured as net debt to EBITDA—of below 4x by the end of 2026.

For growth, Organon is pinning its hopes on its biosimilars portfolio. This segment is strategically crucial to offset revenue declines from products that have lost patent protection. While acknowledging competitive pressures in the fertility market, the company’s guidance for 2026 forecasts largely stable revenue and EBITDA performance.