Sun Pharma Acquires U.S. Firm Organon in $11.75 Billion Deal Sun Pharmaceutical Industries, India’s largest drugmaker, announced a major acquisition of New Jersey-based Organon & Co in an all-cash deal valued at $11.75 billion, including debt. The transaction involves purchasing all outstanding shares of Organon for $14.00 per share, significantly boosting Sun Pharma’s revenue to $12.4 billion. This places the company among the top 25 global pharmaceutical firms, according to the joint statement from both entities. Organon, which was spun off from Merck in 2021, specializes in women’s health and biosimilars. The U.S.-based company operates in over 140 countries and has more than 70 products in its portfolio. The acquisition is part of Sun Pharma’s strategy to expand its innovative medicines business, which currently covers dermatology, ophthalmology, and onco-dermatology. With the deal, the Indian company aims to increase its innovative medicines segment’s contribution to total sales from 20% to 27% by the financial year ending March 2025. The deal’s financial implications are notable. Organon carries a net debt-to-EBITDA ratio of 4 times, while Sun Pharma is described as “net positive.” Post-acquisition, the combined entity’s net debt-to-EBITDA ratio will drop to 2.3 times. Organon’s debt stood at $8.6 billion as of December 2025, with a cash balance of $574 million. Sun Pharma’s executive chairman, Dilip Shanghvi, highlighted the strategic value of the acquisition, stating that Organon’s portfolio and global reach complement Sun Pharma’s existing operations. The U.S. market, a key focus for Sun Pharma, will benefit from Organon’s presence, which includes sales in the U.S., Europe, China, Canada, and Brazil. Organon’s six manufacturing facilities span the European Union and emerging markets.#merck #sun_pharmaceutical_industries #organon_co #dilip_shanghvi #taro_pharma
