Sun Pharma Acquisition: Sun Pharma to acquire US-based Organon in $11.75 billion deal, among biggest overseas buys by Indian firms

Sun Pharmaceutical Industries on Monday announced it will acquire US-based Organon & Co. in an all-cash deal valued at $11.75 billion, marking one of the largest overseas acquisitions by an Indian company.Under the definitive agreement, Sun Pharma will buy all outstanding shares of Organon at $14 per share.The deal, approved by the boards of both companies, is expected to close in early 2027, subject to regulatory clearances and shareholder approval, reported news agency PTI.

Stock surges over 7%

Shares of Sun Pharmaceutical Industries jumped over 7% on Monday following the acquisition announcement, climbing 7.53% to Rs 1,742 on the BSE and 7.50% to Rs 1,742 on the NSE. The rally added Rs 27,462.59 crore to the company’s market valuation, taking it to Rs 16,142.85 crore in morning trade.

Strategic expansion and global scale

Organon, a global healthcare firm spun off from Merck & Co. (known as MSD outside the US and Canada) in 2021, operates six manufacturing facilities across the European Union and emerging markets.It has a portfolio of over 70 products spanning women’s health, biosimilars and general medicines, sold across 140 countries.Following the acquisition, Sun Pharma is expected to enter the top 25 global pharmaceutical companies with combined revenues of $12.4 billion. The company also said it would become a top-three player in global women’s health and the seventh-largest biosimilar company worldwide.Sun Pharma executive chairman Dilip Shanghvi said, “This transaction represents a significant opportunity… Organon’s portfolio, capabilities and global reach are highly complementary to our own.”Organon executive chair Carrie Cox added, “This all-cash transaction offers compelling and immediate value to Organon stockholders… Sun Pharma is well-positioned to support Organon’s businesses, employees and patients globally.”

Financials and synergies

For 2025, Organon reported revenue of $6.2 billion and adjusted EBITDA of $1.9 billion. It carried debt of $8.6 billion and cash reserves of $574 million, as per PTI.Sun Pharma expects synergies exceeding $350 million within two to four years of the deal.The combined entity will operate in 150 countries, with 18 markets each generating over $100 million in revenue.

Among biggest Indian overseas deals

The acquisition ranks among the largest cross-border deals by Indian firms, alongside Tata Steel’s $12 billion takeover of Corus in 2007 and Bharti Airtel’s $10.7 billion acquisition of Zain Telecom’s African business in 2010.For Sun Pharma, it adds to a series of major acquisitions, including the $4 billion takeover of Ranbaxy in 2014 and the acquisition of Taro Pharmaceutical Industries in 2007.The deal is expected to significantly strengthen Sun Pharma’s global footprint and diversify its portfolio, particularly in high-growth segments like women’s health and biosimilars.