Sun Pharmaceutical Industries Limited and Organon & Co. announced in a press release that they have entered into a definitive agreement under which Sun Pharma will acquire 100% of Organon’s issued and outstanding shares for cash at US$ 14.00 per share, with an enterprise valuation of US$ 11.75 billion.

The acquisition of Organon is aligned with Sun Pharma’s strategy of growing its Innovative Medicines business, the company stated in the press release. The deal also enables Sun Pharma to enter the biosimilars market. The transaction has been approved by the boards of both companies. 

According to the press release, upon successful completion of the transaction, Sun Pharma expects to be:

• Among the top 25 global pharmaceutical companies, with combined revenue of US$ 12.4 billion

• A leading company in the established brands/branded generics category

• A more Innovative Medicines focused company with 27% revenue share

• A top 3 company in global women’s health, creating a commercial platform for future growth

• The seventh largest global biosimilar company

• A company with presence in 150 countries, with 18 large markets, each generating more than US$ 100 million in revenue

• A stronger cash-generating company with EBITDA and cash flow set to nearly double, supporting deleveraging from post-transaction net debt/EBITDA of 2.3x.

Sun Pharma said it plans to fund the acquisition through a combination of available cash resources and committed financing from banks. The transaction will be effected by a merger of Organon with a subsidiary of Sun Pharma, with Organon surviving the merger. Finally, the transaction is expected to close in early 2027, subject to customary conditions, including regulatory approvals and Organon stockholder approval, the press release stated. OM