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Sun Pharmaceutical Industries Ltd has announced an all-cash acquisition of US-based Organon & Co at an enterprise valuation of USD 11.75 billion, marking one of the largest overseas transactions by an Indian company. The deal, priced at USD 14 per share, will significantly expand Sun Pharma’s global footprint across 150 countries and strengthen its position in women’s health, biosimilars and branded generics. Organon, a spin-off from Merck in 2021, reported USD 6.2 billion in revenue in 2025. The combined entity is expected to generate USD 12.4 billion in revenue and deliver synergies exceeding USD 350 million within two to four years, subject to regulatory approvals and shareholder consent.
Sun Pharmaceutical Industries Ltd has entered into a definitive agreement to acquire Organon & Co in an all-cash transaction valued at an enterprise value of USD 11.75 billion, marking one of the largest overseas acquisitions by an Indian firm. Advertisement
The transaction, announced in the past week, involves Sun Pharma acquiring all outstanding shares of Organon at USD 14 per share. The deal has been approved by the boards of both companies and is expected to close in early 2027, subject to customary regulatory approvals and shareholder consent.
Organon, formed in 2021 as a spin-off from Merck & Co. (known as MSD outside the US and Canada), operates as a global healthcare company with a strong presence in women’s health, biosimilars and established medicines. The company has six manufacturing facilities across the European Union and emerging markets and a commercial footprint spanning over 140 countries.
For the financial year ended December 2025, Organon reported revenue of USD 6.2 billion and adjusted EBITDA of USD 1.9 billion. The company had total debt of USD 8.6 billion and a cash balance of USD 574 million, which is expected to be further supported by proceeds from a recent divestment transaction.
Following the acquisition, Sun Pharma indicated that the combined entity would generate approximately USD 12.4 billion in revenue, positioning it among the top 25 global pharmaceutical companies. The company also expects to strengthen its position in key segments, including becoming a top-three player globally in women’s health and the seventh-largest biosimilar company.
The combined platform is expected to have a presence across 150 countries, including 18 markets each contributing more than USD 100 million in annual revenue. The company outlined potential synergies of over USD 350 million within two to four years, driven by operational efficiencies and expanded market access.
Sun Pharma’s executive leadership stated that Organon’s portfolio, capabilities and global reach complement its existing operations, enabling the creation of a more diversified platform. Organon’s board, following a strategic review, concluded that the transaction offers immediate value to its shareholders and provides long-term operational continuity under new ownership.
The acquisition adds to Sun Pharma’s track record of overseas expansion, including the USD 4 billion acquisition of Ranbaxy in 2014 and the earlier purchase of Taro Pharmaceutical Industries. The latest deal ranks among the largest outbound acquisitions by Indian corporates, comparable to transactions such as Tata Steel’s takeover of Corus and Bharti Airtel’s acquisition of Zain’s African operations.
The proposed transaction reflects continued outbound consolidation by Indian companies seeking scale and diversification across global markets, particularly in regulated sectors such as pharmaceuticals, where portfolio depth and geographic reach remain critical to long-term growth.
Source - PTI
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