Sun Pharmaceutical Industries, India's largest drugmaker, has announced a definitive agreement to acquire Organon & Co., a US-based pharmaceutical company, in an all-cash transaction valued at an enterprise value of $11.75 billion. This landmark deal represents the largest overseas acquisition ever undertaken by an Indian pharmaceutical firm.
Under the terms of the agreement, Organon shareholders will receive $14 per share in cash. The boards of directors for both companies have approved the transaction, which is anticipated to be finalized in early 2027, pending regulatory approvals and shareholder consent.
Strategic Expansion into Women's Health and Biosimilars
Organon, which was spun off from Merck (known as MSD outside the US and Canada) in 2021, brings a robust portfolio of over 70 products. Its key therapeutic areas include women’s health, general medicines, and a growing presence in biosimilars. The company operates across more than 140 markets globally, with significant operations in the US, Europe, China, Canada, and Brazil, supported by six manufacturing facilities.
For the fiscal year ending December 2025, Organon reported revenues of $6.2 billion and an adjusted EBITDA of $1.9 billion. The company had $8.6 billion in debt and $574 million in cash balances.
This acquisition aligns with Sun Pharma’s strategic objective to expand its innovative medicines business while bolstering its position in established brands and branded generics. The combined entity is projected to achieve revenues of $12.4 billion, based on Sun Pharma's FY25 and Organon's CY2025 figures.
Leadership Voices on the Acquisition
Dilip Shanghvi, Executive Chairman of Sun Pharma, commented on the deal's significance, stating, “This transaction provides an unparalleled opportunity to build a more diversified platform. Organon’s portfolio, capabilities, and global reach are highly complementary to our own, and the combined entity is poised to drive sustainable long-term growth.”
Post-acquisition, the integrated business is expected to have a presence in 150 countries, with 18 markets each generating over $100 million in revenue. The deal also marks Sun Pharma’s substantial entry into the biosimilars market and is set to elevate its standing in women’s health, positioning it among the top three global players.
Kirti Ganorkar, Managing Director of Sun Pharma, emphasized the integration strategy: “We will prioritize business continuity and disciplined integration. We see strong potential in leveraging Organon’s talent pool, and there is significant scope for synergies, including substantial revenue upside opportunities over the coming years.”
Sun Pharma plans to finance the acquisition through a combination of internal accruals and committed financing from banking partners. Following the transaction, the combined company’s net debt to EBITDA ratio is projected at 2.3 times, with operating cash flows expected to support deleveraging efforts.
Carrie Cox, Executive Chair of Organon, remarked on the value for shareholders: “The board thoroughly considered multiple strategic options before agreeing to this deal. This all-cash transaction offers compelling and immediate value to Organon stockholders, and Sun Pharma is well positioned to support the company’s business and employees globally.”
JP Morgan and Jefferies served as financial advisors to Sun Pharma, while Morgan Stanley and Goldman Sachs advised Organon on the transaction.