Indian company Sun Pharma to acquire US

Sun Pharma to acquire Organon for $14 per share, funded by cash and bank credit

Sun Pharmaceutical Industries SUN.NS announced the acquisition of Organon & Co, OGN.N, for approximately $11.75 billion, including debt, in an all-cash deal. This move will allow Sun Pharma to expand into the women’s health sector by gaining access to Organon’s portfolio of over 70 products in women’s health and general medicine, sold in 140 countries.

The acquisition, arising from the split of Merck MRK.N in 2021, will also help Sun Pharma enhance its innovative drug portfolio and venture into biosimilars. Sun Pharma plans to buy all outstanding shares of Organon at $14 per share, representing a premium of more than 24% over the Friday closing price.

Dilip Shanghvi, Sun Pharma’s executive chairman, stated that the combination of Organon’s portfolio, capabilities, and global reach with Sun Pharma’s will create a stronger and more diverse platform. Sun Pharma, valued at over $40 billion, intends to finance the acquisition through a mix of available cash and committed bank financing.

The generic drug manufacturer has been focusing on strengthening its portfolio in dermatology, oncology, and obesity treatment amid declining sales in the US due to changing tariff policies. Sun Pharma, among Indian drug manufacturers, is heavily reliant on the American market and plans to expand its industrial presence in the US in the future.