Sun Pharmaceutical Industries Ltd. shares jumped over 5% during early trade on Monday after it 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 management told analysts it will remain focus on paying the debt as early as possible and hopes to correct value depreciation seen due to the acquisition.
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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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