Sun Pharmaceutical Industries shares surged nearly 5% on Monday after India’s largest drugmaker announced the acquisition of Organon & Co in an all-cash transaction valued at $11.75 billion, including debt.
Under the deal, Sun Pharma will acquire all outstanding shares of New Jersey-based Organon for $14 per share, according to the company’s exchange filing. The transaction marks one of the biggest overseas acquisitions by an Indian pharmaceutical company.
Organon, which was spun off from Merck & Co. in 2021, focuses on women’s health, biosimilars and established medicines. The company has a portfolio of more than 70 products sold across 140 countries.
Carrie Cox, Executive Chair of Organon, said the board approved the deal after evaluating strategic alternatives, adding that the all-cash offer provides immediate and compelling value to shareholders.
Sun Pharma said the acquisition would significantly expand its global scale and push combined annual revenues to around $12.4 billion, placing the merged entity among the top 25 pharmaceutical companies globally.
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Managing Director Kirti Ganorkar said the transaction is a logical next step in strengthening Sun Pharma’s international presence, especially in the U.S., one of the company’s most important markets.
The acquisition also aligns with Sun Pharma’s strategy to expand its innovative medicines business. Currently, the segment includes products across dermatology, ophthalmology and onco-dermatology. In FY25, innovative medicines contributed around 20% of total sales, which is expected to rise to 27% after the deal.
Executive Chairman Dilip Shanghvi said Organon’s portfolio, manufacturing network and international reach complement Sun Pharma’s existing business well. Organon has key markets in the U.S., Europe, China, Canada and Brazil, supported by six manufacturing facilities across the EU and emerging markets.
Share Price Movement
Following the announcement, Sun Pharmaceutical Industries shares jumped around 5% in Monday trade, making it one of the top gainers on the benchmark indices. Organon & Co shares had already rallied nearly 31% on Friday after reports emerged of a possible takeover by Sun Pharma.
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