- Sun Pharma has agreed to acquire Organon in an all-cash deal valuing the US company at $11.75 billion, with shareholders receiving $14.00 per share — a 24% premium to Organon’s closing price on 24 April.
- The combined entity would become a top-25 global pharmaceutical company with $12.4 billion in revenue, a top-3 position in women’s health, and the 7th largest biosimilar player globally.
Sun Pharmaceutical Industries has agreed to acquire Organon & Co. in an all-cash deal valuing the US company at $11.75 billion enterprise value. Organon shareholders will receive $14.00 per share — a premium of over 24% to Organon’s closing price on 24 April.
Both boards have approved the transaction unanimously. The deal is expected to close in early 2027, subject to regulatory approvals and Organon stockholder sign-off. Sun Pharma will fund the acquisition through a combination of existing cash and committed bank financing.
Sun Pharma’s stock rose 9% on the announcement, trading at ₹1,766.90 on the BSE by 10:30 AM on 27 April, up from its previous close of ₹1,619.95.
The combined company
The acquisition would place Sun Pharma among the top 25 global pharmaceutical companies, with combined revenue of $12.4 billion. The combined entity would become a top-3 company in global women’s health, the 7th largest biosimilar player globally, and would have a presence across 150 countries — with 18 markets each generating over $100 million in revenue. Innovative medicines would represent 27% of combined revenue.
About Organon
Organon was spun off from Merck in 2021. It focuses on women’s health, biosimilars, and established brand pharmaceuticals, with a portfolio of over 70 products sold across 140 countries. Its largest markets are the US, Europe, China, Canada, and Brazil. The company operates six manufacturing facilities across the EU and emerging markets.
For the year ended 31 December 2025, Organon reported $6.2 billion in revenue and adjusted EBITDA of $1.9 billion. The company carried $8.6 billion in debt and $574 million in cash at end of December 2025 — a net debt/EBITDA ratio of 4x. Post-close, the combined entity’s net debt/EBITDA is projected at 2.3x.
What both sides said
Dilip Shanghvi, Executive Chairman of Sun Pharma: “Organon’s portfolio, capabilities and global reach are highly complementary to our own. We believe that bringing the two organisations together can create a stronger and more diversified platform.”
Kirti Ganorkar, Managing Director of Sun Pharma: “This transaction is a logical next step in strengthening Sun Pharma’s global business. Together, we will become a partner of choice for acquiring and launching new products. Our immediate priorities will be business continuity, disciplined integration and responsible value creation.”
Carrie Cox, Executive Chair of Organon: “Following a comprehensive review of strategic alternatives, our Board determined that this all-cash transaction offers compelling and immediate value to Organon stockholders.”
Context
The deal fits into Sun Pharma’s broader push into higher-margin specialty medicines, with a focus on dermatology, oncology and obesity, as the company looks to offset declining sales in the US generics market. Sun Pharma’s management also cited limited current presence in China, noting that Organon would help establish it, and identified ten new markets — including China and South Korea — it is looking to enter.
On the debt load, Sun Pharma’s management expressed confidence in accelerating repayment, noting that Organon’s net debt carries an interest rate of around 5.5%. Sun Pharma itself is currently net cash positive.
This is Sun Pharma’s sixth acquisition in 16 years. Previous deals include Taro Pharma in 2007 and Ranbaxy Laboratories in 2014 — both acquired from Daiichi Sankyo for approximately $3.2 billion.
