The deal, valued at $11.75 billion including debt, would push Sun Pharma into the top 25 global pharmaceutical companies
India's Sun Pharmaceutical Industries signed a definitive agreement to acquire U.S. drugmaker Organon & Co. for $14.00 per share in an all-cash transaction, valuing the company at $11.75 billion including debt.
Both companies' boards have approved the deal, which should close in early 2027 if regulators and Organon shareholders agree. Sun Pharma plans to use its cash reserves and secured bank financing to pay for the purchase.
A combined revenue figure of $12.4 billion would vault the merged company into the ranks of the world's top 25 drugmakers, Sun Pharma said. The deal would also make the combined entity the seventh-largest global biosimilar player and a top-three company in global women's health, according to Sun Pharma.
"This transaction represents a significant opportunity for Sun Pharma to build on its vision of Reaching People and Touching Lives," Sun Pharma Executive Chairman Dilip Shanghvi said in a statement. "Organon's portfolio, capabilities and global reach are highly complementary to our own."
Organon Executive Chair Carrie Cox said the board had weighed strategic alternatives before concluding that the all-cash offer delivers stockholders value that is both substantial and immediate.
Sun Pharma stock rose about 7% on the news, according to CNBC. The $14.00-per-share price represents a premium of more than 24% to Organon's April 24 closing price, according to Reuters. Organon's shares had already surged roughly 31% the previous Friday, a move that followed an Economic Times report that Sun Pharma was pursuing a deal to buy the company, according to CNBC.
Sun Pharma, which is the largest pharmaceutical company in India, said the acquisition aligns with its strategy of growing its innovative medicines business. That share of revenue attributed to innovative medicines would climb to 27% for the combined entity, compared with the 20% contribution the segment made to Sun Pharma's own sales in the financial year that ended March 2025. The combined entity would operate in 150 countries, with 18 markets each generating more than $100 million in revenue.
J.P. Morgan Securities and Jefferies are serving as financial advisors to Sun Pharma. Morgan Stanley $MS is serving as lead financial advisor to Organon, and Goldman Sachs $GS is also advising Organon.
