Sun Pharma to acquire Organon in $11.75 billion deal

India's Sun Pharmaceutical Industries signed a definitive statement to get U.S. drugmaker Organon & Co. for $14.00 per stock successful an all-cash transaction, valuing the institution astatine $11.75 cardinal including debt.

Both companies' boards person approved the deal, which should adjacent successful aboriginal 2027 if regulators and Organon shareholders agree. Sun Pharma plans to usage its currency reserves and secured slope financing to wage for the purchase.

Originally carved retired of Merck successful 2021 and based successful Jersey City, New Jersey, Organon markets much than 70 products spanning women's health, wide medicines, and biosimilars successful astir 140 countries. Six manufacturing facilities located successful the European Union and emerging markets service those cardinal geographies, which see the U.S., Europe, China, Canada, and Brazil. For the twelvemonth ended Dec. 31, 2025, Organon reported $6.2 cardinal successful gross and adjusted EBITDA of $1.9 billion. The institution carried $8.6 cardinal successful indebtedness and a currency equilibrium of $574 cardinal astatine that date.

A combined gross fig of $12.4 cardinal would vault the merged institution into the ranks of the world's apical 25 drugmakers, Sun Pharma said. The woody would besides marque the combined entity the seventh-largest planetary biosimilar subordinate and a top-three institution successful planetary women's health, according to Sun Pharma.

"This transaction represents a important accidental for Sun Pharma to physique connected its imaginativeness of Reaching People and Touching Lives," Sun Pharma Executive Chairman Dilip Shanghvi said successful a statement. "Organon's portfolio, capabilities and planetary scope are highly complementary to our own."

Organon Executive Chair Carrie Cox said the committee had weighed strategical alternatives earlier concluding that the all-cash connection delivers stockholders worth that is some important and immediate.

Sun Pharma banal roseate astir 7% connected the news, according to CNBC. The $14.00-per-share terms represents a premium of much than 24% to Organon's April 24 closing price, according to Reuters. Organon's shares had already surged astir 31% the erstwhile Friday, a determination that followed an Economic Times study that Sun Pharma was pursuing a woody to bargain the company, according to CNBC.

Sun Pharma, which is the largest pharmaceutical institution successful India, said the acquisition aligns with its strategy of increasing its innovative medicines business. That stock of gross attributed to innovative medicines would ascent to 27% for the combined entity, compared with the 20% publication the conception made to Sun Pharma's ain income successful the fiscal twelvemonth that ended March 2025. The combined entity would run successful 150 countries, with 18 markets each generating much than $100 cardinal successful revenue.