India’s Sun Pharmaceutical Industries revealed its plan to purchase New York-listed Organon & Co for $11.75 billion, marking its largest foreign acquisition. The deal involves acquiring all of Organon’s shares at $14 each, totaling an enterprise value of $11.75 billion. Sun Pharma aims to enhance its innovative medicines business and expand its presence in established brands and generics through this strategic move.
The acquisition will also pave the way for Sun Pharma to venture into the biosimilars market as a key global player. This consolidation is anticipated to position the combined entity as one of the top 25 pharmaceutical companies worldwide, with an estimated revenue of approximately $12.4 billion. Additionally, it will reinforce its foothold in women’s health and biosimilars segments.
Organon, headquartered in New Jersey, operates in women’s health, biosimilars, and established medicines, boasting a product portfolio of over 70 items distributed across more than 140 countries. The transaction, endorsed by both companies’ boards, is slated for completion in early 2027, pending regulatory and shareholder approvals. Sun Pharma intends to finance the deal using a blend of internal resources and debt financing.
In the fiscal year ending December 2025, Organon recorded revenues of $6.2 billion and an adjusted EBITDA of $1.9 billion. Sun Pharma’s Executive Chairman, Dilip Shanghvi, emphasized that the acquisition would fortify and diversify the company’s foundation, while Managing Director Kirti Ganorkar highlighted the potential synergies and growth prospects arising from the integration. Sun Pharma’s shares surged by 6.71% to touch an intraday high of Rs 1,728.65 on the BSE at the beginning of Monday’s trading session.
