Sun Pharma To Acquire Organon & Co For $11.75 Bn Enterprise Valuation

Sun Pharmaceutical Industries Ltd will acquire US-based Organon & Co in an all-cash deal at an enterprise valuation of $11.75 billion in one of the largest acquisitions by Indian firms overseas.

The company has signed a definitive agreement under which Sun Pharma will acquire all outstanding shares of Organon for $14 per share in an all-cash transaction with an enterprise valuation of $11.75 billion, Sun Pharmaceutical Industries said in a statement on Monday.

Organon is a global healthcare company formed through a spinoff from Merck, known as MSD outside of the US and Canada, in 2021. It has six manufacturing facilities across the European Union and emerging markets.

Upon successful consummation of the transaction, Sun Pharma is poised to be among the top 25 global pharmaceutical companies with a combined revenue of $12.4 billion, a leading player in established brands and branded generics, the company said.

Sun Pharma's acquisition of Organon will be among the top overseas acquisitions by Indian firms, which include Tata Steel's $12 billion takeover of Corus for $12 billion in 2007 and Bharti Airtel's $10.7 billion deal to buy Kuwait-based Zain Telecom's African business in 2010.

Commenting on the acquisition, Sun Pharma Executive Chairman Dilip Shanghvi 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 organisations together can create a stronger and more diversified platform." Organon Executive Chair Carrie Cox said, "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." Post the transaction, Sun Pharma said it will also become a top-three company in global women's health, creating a commercial platform for future growth and the 7th largest global biosimilar player.

It will have a presence in 150 countries, with 18 large markets, each generating over $100 million in revenues after the deal is completed.

In an investor presentation, Sun Pharma said the combined business will unlock several vectors of value creation with potential synergies of over $350 million in 2-4 years.

The transaction has been approved by the boards of directors of both Sun Pharma and Organon and is expected to close in early 2027 subject to customary closing conditions, including receipt of required regulatory approvals and approval by Organon stockholders.

For Sun Pharma, the Organon acquisition is the latest in a series of successful acquisitions which include the $4 billion takeover of erstwhile Ranbaxy in 2014 and the acquisition of Israel's Taro Pharmaceutical Industries in a deal valued at $454 million in 2007.

Organon is a global leader in women's health. It has a portfolio comprising over 70 products across women's health and general medicines, which includes biosimilars, commercialised across 140 countries, with the US, Europe, China, Canada, and Brazil among its largest markets, the statement by Sun Pharma said.

For the year ended December 31, 2025, Organon reported $6.2 billion in revenue and adjusted EBITDA of $1.9 billion. It had debt of $8.6 billion and cash balance of $574 million, the statement said.

Organon had 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, it added.