Shares of Sun Pharmaceutical Industries Ltd surged more than 7% on Monday after the drugmaker announced its largest-ever overseas acquisition, signing a definitive agreement to acquire US-based Organon & Co. in an all-cash deal valued at US$11.75bn (billion). The stock climbed 7.53% to ₹1,742 on the Bombay Stock Exchange (BSE) and rose 7.50% to ₹1,742 on the National Stock Exchange (NSE), before ending the day 7.03% up at ₹1733.80 on BSE and 6.98% up at ₹1733.50 on NSE, respectively.
In
a regulatory filing, Sun Pharma says it will acquire 100% of Organon’s outstanding shares at US$14 per share, translating into an enterprise valuation of US$11.75bn and an equity value of about US$3.99bn. The transaction marks one of the largest cross-border acquisitions by an Indian pharmaceutical company.
Organon, a global healthcare company formed in 2021 following a spinoff from Merck & Co (known as MSD outside US and Canada), has built a strong presence in women’s health, biosimilars and established medicines. The company has a portfolio of more than 70 products and operates in over 140 countries, supported by six manufacturing facilities across the European Union (EU) and emerging markets.
Sun Pharma says the acquisition is aligned with its strategy to scale up its innovative medicines business while strengthening its footprint in established brands and branded generics. The deal will also enable the company to enter the bio-similars segment as a major global player.
Following completion, the combined entity is expected to rank among the top-25 pharmaceuticals companies globally, with estimated revenues of around US$12.4bn. The acquisition is also expected to position Sun Pharma as a leading player in women’s health and the seventh-largest biosimilar company worldwide, while expanding its presence to about 150 countries.
“This transaction represents a significant opportunity for Sun Pharma to build on its vision of reaching people and touching lives,” says Dilip Shanghvi, executive chairman of Sun Pharma, in the company’s release. He added that Organon’s portfolio, capabilities and global reach are highly complementary and will help create a stronger and more diversified platform.
Managing director (MD) Kirti Ganorkar says the deal is a logical step in strengthening Sun Pharma’s global business and highlighted the potential for revenue synergies and future growth opportunities through integration.
Carrie Cox, executive chair of Organon, says the all-cash transaction offers immediate and compelling value to shareholders and expressed confidence in Sun Pharma’s ability to support Organon’s businesses, employees and patients globally.
The transaction has been approved by the boards of both companies and is expected to close in early 2027, subject to regulatory approvals and approval by Organon shareholders. Sun Pharma plans to fund the acquisition through a combination of internal accruals and committed bank financing.
For the year ended December 2025, Organon reported revenue of US$6.2bn and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortisation) of US$1.9bn. The company had debt of US$8.6bn and a cash balance of US$574mn (million).
The acquisition is expected to significantly enhance Sun Pharma’s scale, with EBITDA and cash-flows projected to nearly double post-integration, supporting de-leveraging, despite an initial rise in debt levels.
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