India's largest drugmaker, Sun Pharmaceutical Industries Ltd, on Monday declared that it is acquiring the US-based healthcare company Organon & Co in a deal worth USD 11.75 billion.
This saw the company's shares surge hoover 7% on the stock market. The deal is priced at USD 14 per share in an all-cash transaction, and has witnessed the company's standing in women's health and bio-similars surge exorbitantly. The transaction has been approved by the Boards of Directors of both Sun Pharma and Organon and is subject to customary closing conditions, including receipt of required regulatory approvals and approval by Organon stockholders, according to a press release.
The New Jersey-based company Organon's portfolio includes more than 70 products across Women's Health and General Medicines commercialised across 140 countries, with the US, Europe, China, Canada, and Brazil among its largest markets. Their global footprint is supported by six manufacturing facilities located across the European Union and emerging markets. The acquisition of the New York-listed women's healthcare company by the Indian drug firms is among the biggest outbound deals on record.
Unlocking 'Strong Synergies' for India's MNCs
In a statement to CNBC-TV18, India Head of Investment Banking, RahulSaraf, noted that the global acquisitions can unlock strong synergies for the Indian MNCs. He added that the balance sheet of Sun Pharma is "strong," and that the M&A activity continuing weekly is expected to persist all year round.
On the other hand, Head of Prime Research, HDFC Securities, Devarsh Vakil said about the merger that it will place Sun Pharma among the top 25 global pharmaceutical companies, with a combined revenue that is worth an estimated USD 12.4 billion. He added that the Indian drugmaker will emerge as the top 3 global player in women's health, and the 7th largest global biosimilar player.
Deal to Strengthen Sun Pharma's Global Business
According to the Executive Chairman of Sun Pharma, Dilip Shanghvi, the deal not only represents a significant opportunity for Sun Pharma to build on its vision of Reaching People and Touching Lives, but also the two organisations together would create a stronger and more diversified platform.
We have deep respect for Organon's mission and look forward to building on its legacy while driving sustainable long-term growth, Executive Chairman of Sun Pharma, Dilip Shanghvi, said.
The transaction between the two firms is a logical next step in strengthening Sun Pharma's global business, according to Kirti Ganorkar, Managing Director of Sun Pharma. The two companies will become a partner of choice for acquiring and launching new products, she added. The immediate priorities will be business continuity, disciplined integration and responsible value creation, the Managing Director emphasised. "We see strong potential in leveraging Organon's talent pool. In addition, there is a scope for synergies, including significant revenue upside opportunities to be realised over the coming years," she continued.
When is the Transaction Expected to Close?
According to the company's release, the transaction is expected to close in early 2027 and is subject to customary conditions, including regulatory approvals and Organon stockholder approval. It will be affected by a merger of Organon with a subsidiary of Sun Pharma. The Indian drugmaker will be acquiring 100% of Organon's outstanding and issued shares for cash. Sun Pharma is expected to fund the deal through available cash resources and financing from the banks.
In 2025, Organon reported USD 6.2 billion in revenue and Adjusted EBITDA of USD 1.9 billion. Organon had a debt of USD 8.6 billion and a cash balance of USD 574 million. Organon recently closed on a divestiture of a product for which it received an upfront payment of $440 million, the net proceeds of which will further contribute to its March 31, 2026, cash balance.
About Sun Pharma
Sun Pharmaceutical Industries Limited is India's largest pharmaceutical company and the fourth-largest speciality generic pharmaceutical company globally. Headquartered in Mumbai, it operates as a vertically integrated organisation with a presence in over a hundred countries. The company specialises in speciality generics, innovative medicines, and consumer healthcare products. It is a dominant player in India and the US, ranked second in generic dermatology and has a significant footprint in emerging markets like Russia, Romania, and South Africa.