Highlights:
- $11.75 billion all-cash acquisition announced
- Deal expected to close in early 2027
- Organon shareholders to receive $14 per share
- Combined revenue projected at $12.4 billion
- Stronger position in women’s health and generics
India's leading global specialty generics company, Sun Pharmaceutical Industries, is set to acquire US company Organon & Co. in an all-cash deal valued at an enterprise value of $11.75 billion. This is one of the largest deals by an Indian drugmaker in recent years.
Under the agreement, Organon shareholders will receive $14.00 per share in cash. The boards of both companies have approved the transaction. The deal is expected to close in early 2027, subject to regulatory approvals and shareholder consent.
Organon was spun off from Merck & Co. (known as MSD outside the United States and Canada) in 2021. The company has built a strong presence in women’s health and general medicines.
The acquisition supports Sun Pharma’s strategy to grow its innovative medicines business. It also strengthens its position in established brands and branded generics. The combined company is expected to increase scale and diversify revenue, helped by Organon’s global reach and product portfolio.
After the deal, the combined business is projected to generate about $12.4 billion in revenue. It would rank among the top 25 pharmaceutical companies in the world. It is also expected to become a leading player in branded generics, a top-three company in global women’s health, and the seventh-largest biosimilar company.
The deal will change Sun Pharma’s business mix. Innovative medicines are expected to contribute 27 percent of total revenue. The combined company will operate in around 150 countries, including 18 major markets that each generate more than $100 million in revenue. Financially, the transaction is expected to nearly double EBITDA and cash flow. Net debt to EBITDA after the deal is estimated at 2.3 times.
For the year ended December 31, 2025, Organon reported revenue of $6.2 billion and adjusted EBITDA of $1.9 billion. It had debt of $8.6 billion and cash of $574 million. The company also completed a product divestiture, raising $440 million in upfront proceeds.
Founded in 1983, Sun Pharmaceutical Industries Limited is primarily owned by the Dilip Shanghvi family, holding a 54.48 per cent stake, with Shanghvi serving as Executive Chairman. The company’s registered office is in Gujarat's Vadodara city, and its corporate office is in Mumbai.
Sun Pharma reported FY2024 revenue of around $6.06-$6.3 billion, with FY2025 TTM. It ranks as India’s top pharmaceutical company, operates over 40 manufacturing facilities worldwide, and employs more than 41,000 people globally.
Sun Pharma will fund the acquisition using internal cash and committed bank financing. The deal will be completed through a merger with a Sun Pharma subsidiary, with Organon continuing as the surviving entity.
