SUN PHARMA TO ACQUIRE US COMPANY ORGANON IN $11.75 BILLION DEAL

SUN PHARMA TO ACQUIRE US COMPANY ORGANON IN $11.75 BILLION DEAL

27-APRIL-ENG 1

RAJIV NAYAN AGRAWAL

DELHI----------------------------India's pharmaceutical giant, Sun Pharmaceutical Industries, made a major announcement on Monday. The company has declared its intention to acquire 'Organon & Co.', a US-based firm listed on the New York Stock Exchange. This transaction is valued at $11.75 billion (approximately ₹98,000 crore), marking the largest overseas acquisition in the history of the Indian pharmaceutical sector to date.

Sun Pharma stated that it would acquire all outstanding shares of Organon for $14 per share in cash. The total enterprise value of this deal is estimated at $11.75 billion. The company intends to finance this acquisition using a combination of its existing cash reserves and debt. The deal is expected to be finalized by early 2027.

Following this merger, the combined annual revenue of Sun Pharma and Organon is projected to reach approximately $12.4 billion. This move will propel Sun Pharma into the ranks of the world's top 25 pharmaceutical companies.

Organon primarily specializes in manufacturing medicines related to women's health. Through this deal, Sun Pharma is set to become the world's third-largest company in this specific therapeutic area.

The company will also gain significant strength in the biosimilars segment, emerging as the seventh-largest player globally in this space.

Organon's business operations span across more than 140 countries worldwide, and its portfolio comprises over 70 high-quality products. Sun Pharma will now gain seamless access to all these markets.

Immediately following this announcement, Sun Pharma's shares witnessed a massive surge in the stock market. On the Bombay Stock Exchange (BSE), the company's stock climbed by 6.71 percent, reaching a level of ₹1,728.65.

Expressing his delight over the deal, Sun Pharma Chairman Dilip Shanghvi stated that this acquisition would make the company even stronger and more diversified. Meanwhile, the company's MD, Kirti Ganorkar, remarked that this integration would unlock new avenues for future growth. This deal is a matter of pride for the Indian corporate world, as an Indian company is now poised to become a major force in healthcare services on a global scale.