Sun Pharmaceutical Industries Ltd. agreed to purchase Organon & Co. in an all-cash transaction worth $11.75 billion, marking the biggest acquisition by an Indian pharmaceutical company to date.
At $14 per share, the deal represents a strategy change for Sun Pharma as it moves beyond generics into high-growth markets like women’s health, biosimilars, and specialty drugs. Organon has operations in more than 140 countries, a portfolio of over 50 well-known brands, and a significant presence in reproductive treatments and contraception.
Following the merger, the merged company is anticipated to produce roughly $12.4 billion in revenue annually, almost doubling Sun Pharma’s current size. With a better balance between branded goods, biosimilars, and novel medications, EBITDA is expected to reach approximately $3.7 billion.
Internal funds and debt will be used to finance the transaction, and leverage should be kept under control. Additionally, Sun Pharma expects cost reductions and increased market penetration will result in synergies of more than $350 million within four years.
Subject to regulatory approvals, the transaction is anticipated to completion by early 2027, greatly expanding Sun Pharma’s worldwide reach.
Source – Moneycontrol
