Sun Pharma to Acquire Organon in $11.8 Billion Deal
Sun Pharmaceutical Industries has announced plans to acquire US-based Organon & Co in an all-cash deal valued at about $11.75 billion, including debt. The Indian drugmaker will purchase all outstanding shares at $14 per share, marking a premium of over 24% to Organon’s last closing price. The deal ranks among the largest overseas acquisitions by an Indian pharmaceutical company.
The acquisition will significantly strengthen Sun Pharma’s presence in women’s health, giving it access to Organon’s portfolio of over 70 products sold across 140 countries. Organon, which was spun off from Merck in 2021, has faced recent financial pressure, reporting a quarterly revenue decline and a net loss, while carrying substantial debt.
Sun Pharma plans to fund the deal through a mix of internal cash and bank financing. The move aligns with its strategy to diversify into specialty and innovative medicines, including biosimilars, while reducing dependence on the US generics market, where pricing pressures and policy changes have impacted margins.
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