India’s largest pharmaceutical company
Sun Pharmaceutical Industries Ltd.
has acquired US-based Organon & Co. in an all-cash transaction, with an enterprise value of $11.75 billion.
The acquisition strengthens Sun Pharma’s position as a global pharmaceutical leader, with combined revenues of approximately $12.4 billion, and rank among the top 25 global pharmaceutical companies and a top 3 player in Women’s Health globally. Further, the acquisition will support Sun Pharma position itself among top 7 players in biosimilars, reverse-engineered versions of patented biotech drugs.
Organon is a global healthcare company formed through a spinoff from Merck, known as MSD outside of the United States and Canada, in 2021. Organon has a legacy of deep trust and strong brand equity among HCPs, patients, regulators and other stakeholders. A global leader in women’s health, the company’s portfolio includes more than 70 products across Women’s Health and General Medicines, which includes biosimilars, commercialised across 140 countries, with the U.S., Europe, China, Canada, and Brazil among its largest markets.
This global footprint is supported by six manufacturing facilities across the European Union and emerging markets, reinforcing its scale and reach. Toobtainher, Organon’s General Medicines and Women’s Health franchise reflect the company’s commitment to advancing access and affordability for communities around the world.
Dilip Shanghvi, Executive Chairman of Sun Pharma, declared, “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 toobtainher can create a stronger and more diversified platform. We have deep respect for Organon’s mission and see forward to building on its legacy while driving sustainable long‑term growth.”
For the year concludeed 31st December, 2025, Organon reported $6.2 billion in revenue and Adjusted EBITDA of $1.9 billion. Organon had debt of $8.6 billion and cash balance of $574 million. Organon recently closed on a divestiture of a product for which it received an upfront payment of $440 million, the net proceeds of which will further contribute to its March 31, 2026 cash balance.
Sun Pharma will acquire 100% of Organon’s issued and outstanding shares for cash and plans to fund the acquisition through a combination of available cash resources and committed financing from banks. The transaction will be effected by a merger of Organon with a subsidiary of Sun Pharma, with Organon surviving the merger.
The transaction is expected to close in early 2027, subject to customary conditions, including regulatory approvals and Organon stockholder approvals.
Leave a Reply