Sun Pharmaceutical Industries jumped 7.42% to Rs 1740.20 after the company announced the signing of definitive agreement with Organon & Co. for acquiring all outstanding shares of Organon at an enterprise valuation of $11.75 billion.
According to the companys exchange filing, Sun Pharma would acquire 100% of Organons issued and outstanding shares for cash at a price of $14 per share, aggregating to approximately $3.99 billion in total equity value.
The company plans to fund the acquisition through a combination of available cash resources and committed financing from banks. The transaction is expected to close in early 2027.
Organon is a global healthcare company formed through a spinoff from Merck, known as MSD outside of the United States and Canada, in 2021.
Organon has a legacy of deep trust and strong brand equity among HCPs, patients, regulators and other stakeholders. A global leader in womens health, the companys portfolio includes more than 70 products across Womens Health and General Medicines, which includes biosimilars, commercialized across 140 countries, with the U.S., Europe, China, Canada, and Brazil among its largest markets.
This global footprint is supported by six manufacturing facilities across the European Union and emerging markets, reinforcing its scale and reach.
The proposed acquisition of Organon is aligned with Sun Pharmas strategy of growing its Innovative Medicines business. The combined company becomes a stronger player in Established Brands /Branded Generics business. The deal also enables Sun Pharmas entry into biosimilars as a Top-10 global player. Organons portfolio, global footprint and strong stakeholder relationships shall complement Sun Pharmas existing strengths and enhance long term value creation.
The combined entity would be among the top 25 global pharmaceutical companies with combined revenue of $12.4 billion. It would also become a stronger cash generating company with EBITDA and cash flow set to nearly double, supporting deleveraging from post transaction net debt-to-EBITDA of 2.3 times.
The transaction has been approved by the boards of directors of Sun Pharma and Organon and is subject to customary closing conditions, including receipt of required regulatory approvals and approval by Organon stockholders.
Dilip Shanghvi, executive chairman of Sun Pharma, said: Organons portfolio, capabilities and global reach are highly complementary to our own, and we believe that bringing the two organizations together can create a stronger and more diversified platform.
Sun Pharmaceutical Industries is engaged in the business of manufacturing, developing and marketing a wide range of branded and generic formulations and active pharmaceutical ingredients (APIs). The company and its subsidiaries has various manufacturing facilities spread across the world with trading and other incidental and related activities extending to global market. It is the largest pharmaceutical company in India.
The company has reported a 16.03% rise in consolidated net profit to Rs 3,368.81 crore on a 13.49% increase in revenue to Rs 15,520.54 crore in Q3 FY26 over Q3 FY25.
