Sun Pharmaceutical Industries Limited announced a definitive agreement to acquire Organon & Co. in an all-cash transaction valued at an enterprise value of $11.75 billion, with Organon shareholders set to receive $14 per share.
The acquisition represents a major strategic move for Sun Pharma as it expands its global footprint and strengthens its position across branded generics, innovative medicines, and biosimilars. Organon, which was spun off from Merck in 2021, brings a portfolio of more than 70 products spanning women’s health, biosimilars, and general medicines, with operations across more than 140 countries.
The combined business is expected to generate approximately $12.4 billion in revenue and position Sun Pharma among the top 25 global pharmaceutical companies. The transaction also marks Sun Pharma’s entry into the biosimilars segment as a top 10 global player while significantly expanding its presence in women’s health, where it is expected to become a top three global company.
Organon’s global infrastructure, including six manufacturing facilities and strong relationships with healthcare providers and regulators, is expected to complement Sun Pharma’s existing operations. The deal also enhances Sun Pharma’s geographic reach, expanding its presence to approximately 150 countries and strengthening its position in key markets such as the United States, Europe, China, Canada, and Brazil.
Financially, the combined entity is expected to significantly increase earnings and cash flow, with EBITDA and cash generation projected to nearly double. Sun Pharma plans to finance the acquisition through a combination of existing cash reserves and committed bank financing, with post-transaction leverage estimated at 2.3x net debt to EBITDA.
The transaction has been approved by the boards of both companies and is subject to customary closing conditions, including regulatory approvals and approval by Organon shareholders. The deal is expected to close in early 2027.
Organon reported $6.2 billion in revenue and $1.9 billion in adjusted EBITDA for the year ended December 31, 2025, highlighting the scale of the business being integrated into Sun Pharma’s platform.
The acquisition aligns with Sun Pharma’s broader strategy to grow its innovative medicines business while enhancing its established brands portfolio. The company also expects to realize revenue synergies and long-term value creation through integration of operations, talent, and product pipelines.
KEY QUOTES:
“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 organizations 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, Sun Pharma
“This transaction is a logical next step in strengthening Sun Pharma’s global business. Together, we will become a partner of choice for acquiring and launching new products. Our immediate priorities will be business continuity, disciplined integration and responsible value creation. We see strong potential in leveraging Organon’s talent pool. In addition, there is a scope for synergies including significant revenue upside opportunities to be realized over the coming years.”
Kirti Ganorkar, Managing Director, Sun Pharma
“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, Organon
