Sun Pharmaceuticals Industries has announced it will acquire U.S.-based Organon & Co in an all-cash deal valued at $11.75 billion, marking the largest overseas acquisition by an Indian pharmaceutical company.
The transaction includes the purchase of all outstanding shares of Organon at $14 per share, representing a premium of over 24 percent over its recent closing price. The deal, which has been approved by the boards of both companies, is expected to close by early 2027, subject to regulatory and shareholder approvals.
The acquisition is a strategic move by Sun Pharma to strengthen its global footprint and further shift into high-margin specialty therapies, including dermatology, oncology, and obesity, amid pressure on its U.S. generics business.
Organon, which was spun off from Merck, brings a diversified portfolio of more than 70 products spanning women’s health, biosimilars, and established medicines, with a presence in around 140 countries. The deal is expected to significantly boost Sun Pharma’s position in women’s health and provide an entry into the fast-growing biosimilars segment.
Analysts say the acquisition will also expand Sun Pharma’s reach into emerging markets such as China and Brazil, where its presence has been relatively limited.
The deal will be financed through a mix of internal cash and committed bank financing, with Organon carrying net debt of around $8.6 billion as of the end of 2025.
Following the announcement, Sun Pharma’s shares surged, reflecting investor optimism about the long-term strategic benefits of the acquisition.
The move positions Sun Pharma among the top global players in key segments such as women’s health and biosimilars, as it looks to scale its international operations and diversify its revenue base.
