Sun Pharmaceutical Industries Limited and Organon & Co have entered into a definitive agreement under which Sun Pharma will acquire all outstanding shares of Organon for US$14.00 per share in an all-cash transaction valued at an enterprise value of US$11.75 billion.
The proposed acquisition marks one of the largest global expansion moves by Sun Pharma and is expected to significantly strengthen its presence across innovative medicines, branded generics, women’s health and biosimilars. The transaction has been approved by the boards of both companies and remains subject to regulatory clearances and approval by Organon shareholders.
Organon, formed in 2021 through a spin-off from Merck, operates as a global healthcare company with a strong presence in women’s health and established medicines. Its portfolio includes more than 70 products marketed in over 140 countries, with major markets including the United States, Europe, China, Canada and Brazil. The company also operates six manufacturing facilities across the European Union and emerging markets.
For Sun Pharma, the acquisition aligns with its strategy of expanding global scale while strengthening its innovative medicines business. The combination is also expected to create a stronger platform in established brands and branded generics while enabling Sun Pharma’s entry into biosimilars as a major global participant.
Following completion of the transaction, the combined entity is expected to generate revenues of about US$12.4 billion, placing it among the top 25 pharmaceutical companies globally. The enlarged business will have operations in 150 countries, including 18 markets generating annual revenues above US$100 million each.
The merged company is also expected to become one of the top three players in global women’s health and the seventh-largest biosimilar company worldwide. In addition, EBITDA and operating cash flow are projected to nearly double, supporting deleveraging after the transaction.
Dilip Shanghvi, Executive Chairman of Sun Pharma, said the acquisition represents a major opportunity to advance the company’s long-term vision of improving access to healthcare worldwide. He noted that Organon’s portfolio, capabilities and international reach complement Sun Pharma’s existing strengths and will help create a more diversified and resilient business.
Kirti Ganorkar, Managing Director of Sun Pharma, said the transaction is a logical next step in strengthening the company’s global business. He added that priorities following completion will include seamless business continuity, disciplined integration and long-term value creation. He also highlighted opportunities to leverage Organon’s talent base and generate revenue synergies in future years.
Carrie Cox, Executive Chair of Organon, said the board conducted a comprehensive review of strategic alternatives and concluded that the all-cash offer provides compelling and immediate value to shareholders. She added that Sun Pharma is well positioned to support Organon’s employees, patients and businesses globally.
Sun Pharma intends to fund the acquisition through a combination of existing cash resources and committed bank financing. The transaction will be executed through a merger of Organon with a Sun Pharma subsidiary, with Organon surviving the merger. Closing is expected in early 2027, subject to customary conditions.
Sun Pharma is a global specialty generics company with a presence across specialty, generics, and consumer healthcare. It is the largest pharmaceutical company in India and among the leading generics players in the United States and emerging markets. The company’s specialty portfolio includes dermatology, ophthalmology, and onco-dermatology products, and its medicines are supplied across more than 100 countries through vertically integrated manufacturing operations spanning six continents.
