Sun Pharma to Buy Organon for $11.75 Billion, Stocks Up More Than 7%

Sun Pharma Industries Ltd. will buy the U.S.-based company Organon & Co. in an all-cash deal worth $11.75 billion. Under the agreement, Sun Pharma will purchase all outstanding shares of Organon at $14 per share. The transaction has been approved by the boards of both companies and is expected to close in early 2027, subject to regulatory approvals and shareholder consent, according to PTI.

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

Shares of Sun Pharmaceutical Industries rose 7.53% to ₹1,742 on the BSE and 7.50% to ₹1,742 on the NSE following the announcement. The rally added ₹27,462.59 crore to the company’s market capitalisation.

Organon Business Profile

Organon was spun off from Merck & Co. in 2021 and operates six manufacturing facilities across the European Union and emerging markets. The company has a portfolio of more than 70 products across women’s health, biosimilars, and general medicines, with operations in over 140 countries.

Organon said that its revenue for 2025 was $6.2 billion and its adjusted EBITDA was $1.9 billion. It had total debt of $8.6 billion and cash reserves of $574 million, as per PTI.

Combined Scale And Presence

Following the acquisition, the combined entity is expected to have revenues of $12.4 billion and operations across 150 countries. The company stated that 18 markets will each generate more than $100 million in revenue.

Sun Pharma said the transaction will strengthen its presence in women’s health and biosimilars. Post-acquisition, the company is expected to be among the top 25 global pharmaceutical firms, a top-three player in women’s health, and the seventh-largest biosimilar company globally.

Synergies And Integration

The company expects to achieve synergies of more than $350 million within two to four years after completion of the transaction.

Among the Largest Overseas Deals

The deal ranks among the largest overseas acquisitions by Indian firms. Comparable transactions include Tata Steel’s $12 billion acquisition of Corus in 2007 and Bharti Airtel’s $10.7 billion acquisition of Zain Telecom’s African business in 2010.

For Sun Pharma, this is an addition to its past acquisitions, like its acquisition of Ranbaxy for $4 billion in 2014, and its earlier acquisition of Taro Pharmaceutical Industries in 2007. The acquisition will enable Sun Pharma to increase its presence around the globe and enhance its product offerings in various segments.