Sun Pharmaceutical Industries has announced a major move to acquire Organon & Co. in an all-cash deal worth US$ 11.75 billion. Under the terms of the agreement, Sun Pharma will pay US$ 14.00 per share for all outstanding stock. The deal has received approval from the boards of both companies. It remains subject to the usual regulatory clearances and the approval of Organon stockholders. The transaction is expected to conclude in early 2027.
The acquisition is designed to strengthen Sun Pharma’s position in the innovative and branded generics markets. Organon was originally spun off from Merck in 2021 and currently operates in over 140 countries. Its portfolio includes more than 70 products focused on general medicines and women’s health. Once the merger is complete, Sun Pharma will become the seventh-largest biosimilar player in the world. It will also rank as a top three company in the global women’s health sector.
Financially, the combined entity is projected to generate annual revenues of US$ 12.4 billion. Sun Pharma expects its EBITDA and cash flow to nearly double following the integration. The company plans to fund the purchase using a mix of existing cash and bank financing. Organon reported revenues of US$ 6.2 billion for the year ending 2025. It held a debt of US$ 8.6 billion alongside a cash balance of US$ 574 million during that period.
Strategic advisors for the deal include J.P. Morgan, Jefferies, Morgan Stanley and Goldman Sachs. White & Case and Sullivan & Cromwell are providing legal counsel. The merger will see Organon become a subsidiary of Sun Pharma while maintaining its corporate identity through the transition.
“This transaction represents a significant opportunity for Sun Pharma to build on its vision of Reaching People and Touching Lives. Organon’s portfolio, capabilities and global reach are highly complementary to our own, and we believe that bringing the two organizations together can create a stronger and more diversified platform. We have deep respect for Organon’s mission and look forward to building on its legacy while driving sustainable long-term growth,” said Dilip Shanghvi, Executive Chairman 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. We see strong potential in leveraging Organon’s talent pool. In addition, there is a scope for synergies including significant revenue upside opportunities to be realized over the coming years,” said Kirti Ganorkar, Managing Director of Sun Pharma.
“Following a comprehensive review of strategic alternatives, our Board determined that this all-cash transaction offers compelling and immediate value to Organon stockholders. We believe Sun Pharma is well positioned to support Organon’s businesses, employees and patients globally, and to further advance our commitment to delivering impactful medicines and solutions,” said Carrie Cox, Executive Chair of Organon.
