- Sun Pharma to acquire Organon for $11.75 billion in an all-cash deal
- Acquisition aligns with Sun Pharma's Innovative Medicines growth strategy
- Transaction expected to be completed by early 2027 after approvals
Sun Pharmaceutical Industries Ltd. on Monday announced the acquisition of New York-listed Organon & Co. in an all‑cash
transaction with an enterprise valuation of $11.75 billion. The Indian drugmaker will buy all outstanding shares for $14 per share in cash, or approximately $3.99 billion in total equity value, according to a stock exchange filing.
"The proposed acquisition of Organon is aligned with Sun Pharma's strategy of growing its Innovative Medicines business. The combined company becomes a stronger player in Established Brands/Branded Generics business. Organon's portfolio, global footprint and strong stakeholder relationships shall complement Sun Pharma's existing strengths and enhance long‑term value creation," a statement said.
The acquisition is expected to be completed in early 2027, subject to customary conditions, including regulatory approvals and Organon stockholder approval.
Sun Pharma plans to fund the acquisition through a combination of available cash resources ($2-2.5 billion) and committed financing from banks ($9.25-9.75 billion) including Citigroup Global Markets Asia Ltd., JPMorgan Chase Bank N.A. and MUFG Bank Ltd.
The transaction will be effected by a merger of Organon with a subsidiary of Sun Pharma, with Organon surviving the merger.
About Organon
New Jersey-headquartered Organon operates across three primary lines of business: women's health, biosimilars, and established branded medicines. Key products include the contraceptive implant Nexplanon, fertility drugs Follistim AQ and Puregon, and various cardiovascular and respiratory medicines, including Dulera and Fosamax, according to its website.
The company has a commercial presence across 140 countries, with US, Europe, China, Canada, and Brazil being their largest markets. The global footprint is supported by six manufacturing facilities across the European Union and emerging markets.
For the year ended December, 2025, Organon reported $6.2 billion in revenue and adjusted Ebitda of $1.9 billion. It had debt of $8.6 billion and cash balance of $574 million. The company 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.
Sun Pharma Managing Director Kirti Ganorkar said there is a scope for synergies from the Organon acquisition including significant revenue upside opportunities to be realised over the coming years. The combined revenue pool could be $12.4 billion with an operating income of $3.7 billion.
"Organon's portfolio, capabilities and global reach are highly complementary to our own, and we believe that bringing the two organizations together can create a stronger and more diversified platform," said Executive Chairman Dilip Shanghvi.
Sun Pharma Stock Movement
Shares of Sun Pharma gained as much as 5.5% to Rs 1,709 on the NSE, becoming the top gainer in the benchmark Nifty 50, which popped 0.6%. The stock is down 8% in the last 12 months and nearly 2% year-to-date.
The total traded volume stood at 15 times the 30-day average, according to Bloomberg data. The relative strength index was above 80, indicating the stock is overbought.
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