Organon shareholders have approved Sun Pharmaceutical Industries Ltd.'s proposed acquisition of the U.S.-based drugmaker, marking another milestone in what will be the Indian pharmaceutical company's largest-ever acquisition if completed.
The transaction, announced in April and valued at about $9.4 billion, including debt, is expected to close by early 2027, subject to the remaining customary conditions, including regulatory approvals. The company has not indicated any change to that timeline following the shareholder vote.
The approval comes nearly three months after Sun Pharma unveiled plans to buy Organon, surpassing its 2014 acquisition of Ranbaxy Laboratories as the biggest deal in the company's history.
The acquisition is central to Sun Pharma's strategy to broaden its global business beyond specialty medicines and generics. It will expand the company's presence in women's health and established medicines while strengthening its position in developed markets. Organon, which was spun off from Merck & Co. in 2021, markets women's health products, biosimilars and established brands across global markets.
For Sun Pharma, the transaction is also expected to diversify its revenue mix by adding a portfolio of mature brands that generate steady cash flows.
"The shareholder approval marks an important milestone towards completion of the proposed transaction," Sun Pharma said in a statement on Friday.
The company said Organon is expected to become a wholly owned subsidiary of Sun Pharmaceutical Holdings USA Inc., an indirect wholly owned subsidiary of Sun Pharma, once the merger is completed.
Sun Pharma said the acquisition remains subject to the fulfilment of the remaining customary closing conditions, including applicable regulatory approvals.
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