Noida, Apr 27 (APAC Media): Shares of Sun Pharmaceutical Industries Ltd jumped more than 7% on Monday after India’s largest drugmaker announced it will acquire US-based Organon & Co in an all-cash transaction valued at $11.75 billion, including debt, according to a regulatory filing.
Shares of Sun Pharma surged 7.4% to Rs 1,733.50 on the BSE, while on the NSE the stock rose 6.93% to Rs 1,733 during intraday trade.
Sun Pharma will purchase all outstanding shares of Organon at $14 per share in cash, giving it full ownership of the New Jersey-based firm.
Organon, spun off from Merck in 2021, operates across women’s health, biosimilars and established medicines, with a presence in more than 140 markets worldwide.
“This transaction represents a significant opportunity for Sun Pharma to build on its vision of reaching people and touching lives. 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. We have deep respect for Organon’s mission and look forward to building on its legacy while driving sustainable long‑term growth.” Dilip Shanghvi, executive chairman of Sun Pharma, said.
The acquisition is expected to expand Sun Pharma’s global footprint in speciality pharmaceuticals, particularly in dermatology, oncology and women’s health, while reducing dependence on generic drugs.
“Following a comprehensive review of strategic alternatives, our Board determined that this all‑cash transaction offers compelling and immediate value to Organon stockholders. We believe Sun Pharma is well positioned to support Organon’s businesses, employees and patients globally and to further advance our commitment to delivering impactful medicines and solutions,” Carrie Cox, executive chair of Organon, said.
The transaction will be financed through a mix of internal cash resources and committed bank financing according to filings.
Sun Pharmaceutical Industries Ltd will acquire 100% of the issued and outstanding shares of US-based Organon & Co in an all-cash transaction, the companies said. The deal will be executed through a merger of Organon with a subsidiary of Sun Pharma, with Organon continuing as the surviving entity post-merger.
Sun Pharma said it plans to fund the acquisition through a combination of available cash resources and committed financing from banking partners.
The transaction is expected to close in early 2027, subject to customary closing conditions, including regulatory approvals and Organon stockholder consent. For the year ended December 31, 2025, Organon reported revenue of $6.2 billion and adjusted EBITDA of $1.9 billion.
The company carried total debt of $8.6 billion and held cash reserves of $574 million. Organon recently completed a divestiture of a product, receiving an upfront payment of $440 million, with net proceeds expected to further strengthen its cash position by March 31, 2026.
It also strengthens Sun Pharma’s presence in the United States and other regulated markets where Organon has an established commercial network and manufacturing footprint.
Disclaimer: Views expressed are those of experts and do not reflect APAC Media. This is for informational purposes only, not financial advice. We are not responsible for investment decisions. Please consult a qualified financial advisor before investing.
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