India’s Sun Pharma to buy US-listed Organon in about US$11.8 billion deal

SUN Pharmaceutical Industries will acquire Organon & Co in an all-cash deal, valuing the US drugmaker at about US$11.75 billion including debt, in one of India’s biggest outbound deals.

The acquisition would help Sun Pharma further expand its women’s health portfolio with access to Organon’s portfolio of more than 70 products across women’s health and general medicines, commercialised across 140 countries.

As part of the deal, Sun Pharma will buy all the outstanding shares of Organon for US$14 per share, the companies said in a joint statement, representing a premium of more than 24 per cent to the stock’s last close on Friday.

Organon had a debt of US$8.6 billion, as of December 31, 2025. In February, the healthcare firm reported a 5 per cent fall in fourth-quarter revenue, and a net loss of US$205 million.

With the acquisition of Organon, spun off from Merck in 2021, Sun Pharma also aims to grow its innovative medicines portfolio and enter into biosimilars.

“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,” said Dilip Shanghvi, executive chairman of Sun Pharma.

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Sun Pharma, valued at more than US$40 billion, plans to fund the acquisition through a combination of available cash resources and committed financing from banks.

The generic drugmaker has been focusing on strengthening its portfolio in dermatology, oncology, and obesity therapy, as it grapples with declining sales in the United States where shifting tariff policies under President Donald Trump continue to weigh on profit margins.

Among Indian drugmakers, Sun is one of the most exposed to the US market. To mitigate the situation, the company has said that it is open to expanding its manufacturing presence in the US in the future. REUTERS