Sun Pharma agrees $11.75bn acquisition of Organon

July 2026 | DEALFRONT | MERGERS & ACQUISITIONS

Financier Worldwide Magazine

July 2026 Issue

In the largest overseas acquisition by an Indian pharmaceutical company, Sun Pharmaceutical Industries Limited has agreed to acquire US drugmaker Organon & Co in an all-cash transaction valued at $11.75bn.

Under the terms of the definitive agreement, Sun Pharma will acquire all outstanding shares of Organon for $14 per share, representing a 24 percent premium to the company’s closing share price.

Once the transaction is completed, Sun Pharma, the largest pharmaceutical company in India, is expected to strengthen its position in established brands while reducing its dependence on generics and the US market. The deal is also intended to diversify revenue streams and expand the company’s global footprint in higher value therapeutic segments.

“This transaction represents a significant opportunity for Sun Pharma to build on its vision of ‘Reaching People and Touching Lives’,” said Dilip Shanghvi, executive chairman of Sun Pharma. “Organon’s portfolio, capabilities and global reach are highly complementary to our own, and we believe that bringing the two organisations together can create a stronger and more diversified platform.”

A global leader in women’s health, Organon’s portfolio includes more than 70 products across women’s health and general medicines, including biosimilars, which are marketed across 140 countries. Its largest markets include the US, Europe, China, Canada and Brazil.

This global footprint is supported by six manufacturing facilities across the European Union and emerging markets, reinforcing its scale and reach. Organon’s general medicines and women’s health franchises reflect the company’s commitment to improving access and affordability worldwide. The acquisition also provides Sun Pharma with scale in biosimilars, a fast-growing segment within the global pharmaceutical market.

“Following a comprehensive review of strategic alternatives, our board determined that this all-cash transaction offers compelling and immediate value to Organon stockholders,” said Carrie Cox, executive chair of Organon. “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.”

Upon completion, the combined business is expected to rank among the top 25 global pharmaceutical companies, with combined revenue of approximately $12.4bn. It is also projected to become a leading player in established brands and branded generics, while increasing the share of revenue derived from innovative medicines to around 27 percent. In addition, the enlarged group is expected to rank among the top three companies globally in women’s health.

The transaction, approved by the boards of both companies, remains subject to customary closing conditions, including regulatory approvals and approval by Organon stockholders. It is expected to close in early 2027.

The deal reflects a broader trend of outbound acquisitions by Indian companies seeking growth opportunities overseas, particularly in sectors such as healthcare, where global scale and innovation pipelines are increasingly important. Analysts note the transaction may also help Sun Pharma mitigate competitive pressures in its traditional generics business by expanding into specialty and branded medicines.

JP Morgan Securities LLC and Jefferies LLC are serving as financial advisers to Sun Pharma, while White & Case LLP and AZB & Partners are acting as legal advisers. Citigroup Global Markets Asia, JPMorgan Chase Bank and MUFG Bank are providing financing.

Morgan Stanley & Co. LLC is serving as lead financial adviser to Organon, with Goldman Sachs & Co. LLC acting as an additional adviser. Sullivan & Cromwell LLP and Cyril Amarchand Mangaldas are acting as legal advisers.

“This transaction is a logical next step in strengthening Sun Pharma’s global business,” noted Kirti Ganorkar, managing director of Sun Pharma. “We see strong potential in leveraging Organon’s talent pool and there is a scope for synergies including significant revenue upside opportunities to be realised over the coming years.”

Fraser Tennant