Sun Pharmaceutical Industries has entered into a definitive agreement to acquire Organon & Co. in an all cash transaction valued at approximately $11.75 billion. Under the terms of the deal, Sun Pharma will acquire all outstanding shares of Organon at $14.00 per share, marking one of the largest outbound acquisitions by an Indian pharmaceutical company.
Organon, which was spun off from Merck in 2021, operates as a global healthcare company with a strong presence in women’s health and established medicines. The company markets more than 70 products across 140 countries, with key markets including the United States, Europe, China, Canada and Brazil. Its portfolio spans women’s health therapies, biosimilars and general medicines, supported by a manufacturing network across the European Union and emerging markets.
The acquisition aligns with Sun Pharma’s strategy to expand its presence in innovative and specialty segments while strengthening its global generics and established brands business. By integrating Organon’s portfolio and geographic reach, Sun Pharma is expected to enhance its scale and diversify its therapeutic focus, particularly in women’s health, where the combined entity is projected to become a leading global player.
The transaction also marks Sun Pharma’s entry into the biosimilars segment at scale. Organon’s existing biosimilars portfolio and commercial footprint provide an immediate platform in this space, positioning the combined company among the top global players in biosimilars. In addition, the deal is expected to strengthen Sun Pharma’s presence across multiple international markets, expanding its reach to approximately 150 countries.
Financially, the combined entity is projected to achieve annual revenues of around $12.4 billion. The acquisition is also expected to improve operating scale and cash flow generation, with EBITDA and cash flows anticipated to increase significantly post integration. This is expected to support deleveraging over time, following the increase in debt required to fund the transaction.
Sun Pharma plans to finance the acquisition through a combination of existing cash reserves and committed funding from global banks. The transaction will be executed through a merger structure, with Organon becoming a subsidiary of Sun Pharma upon completion. The deal remains subject to regulatory approvals and shareholder consent, and is expected to close in early 2027.
Dilip Shanghvi, Executive Chairman of Sun Pharma, said, “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.”
Kirti Ganorkar, Managing Director of Sun Pharma, said, “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.”
Carrie Cox, Executive Chair of Organon, commented, “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.”
