Sun Pharma is in talks to buy US-based Organon in a potential $10 billion deal, which could become its largest overseas acquisition ever.
The discussions have restarted after Organon’s share price dropped sharply, making the company cheaper than before.
If successful, the acquisition would significantly strengthen Sun Pharma’s presence in the US market and the global biosimilars space.
Sun Pharmaceutical Reopens Talks With Organon, Eyes Historic $10 Bn Overseas Pharma Deal
Notably, Sun Pharma and Organon had talked earlier, but nothing happened because Organon was considered too expensive. Now, Organon’s share price has reportedly fallen by about 50%, so Sun has started talking again
Sun Pharmaceutical Reopens Talks With Organon, Eyes Historic $10 Bn Overseas Pharma Deal
Summary
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India’s biggest medicine-making company, Sun Pharmaceutical Industries, is planning to acquire a US company called Organon, according to a report by The Economic Times.
Point to note: Organon is a company that mainly makes medicines for women’s health and also works on biosimilars, which are low-cost versions of expensive medicines.
If this deal happens, it could cost around $10 billion, including Organon’s loans. This would be the biggest deal Sun Pharma has ever tried, and one of the biggest deals ever by an Indian drug company outside India, the report added.
The pharmaceutical giant last made a very big purchase almost 10 years ago, when it bought Ranbaxy.
Why Organon?
Organon was created in 2021, when it was separated from Merck (also called MSD). When it started, Organon already had a lot of debt, about $9.5 billion.
Even after that, Organon kept buying more companies. In September 2024, it bought a skin-care medicines company called Dermavant for $1.2 billion. Because of this, Organon’s total debt was still very high, about $8.9 billion by mid-2025.
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Now, Organon is trying to sell some of its businesses to reduce its debt.
Notably, Sun Pharma and Organon had talked earlier, but nothing happened because Organon was considered too expensive. Now, Organon’s share price has reportedly fallen by about 50%, so Sun has started talking again.
Sun Pharma's advisors include a European bank, which is helping prepare a financial plan to present to Organon’s board.
However, it is still not clear whether Sun Pharma will pay only cash or use a mix of cash and shares.
The report also highlighted that there is no guarantee if the the deal will happen and that other companies may also show interest, which could lead to a bidding war.
The global biosimilars market is controlled by a few big companies. About 70% of sales come from just eight firms, including, Switzerland's Sandoz US' Pfizer, Biogen and Amgen, South Korea's Celltrion and Samsung Bioepis and India's Biocon.
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Organon already works with Samsung Bioepis to make biosimilars. Last year, Samsung Bioepis was reported to be interested in buying Organon, but the company later denied the repoprts.
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