Sun Pharma will acquire Organon & Co in a wholly cash deal that values the American pharmaceutical company at $11.75 billion, including its debt, making it one of the largest foreign acquisitions by any Indian firm. The acquisition will enable Sun Pharma to grow its women’s health segment by providing access to more than 70 medications from Organon’s portfolio.
In accordance with the terms of the agreement, Sun Pharma will acquire all of Organon’s outstanding shares at a price of $14 per share, as stated by both companies. This deal will be priced about 24% above its closing price on the previous Friday. According to Organon’s financial records as of December 31, 2025, it owes $8.6 billion.
The acquisition of Organon, a spin-off from Merck in the past year, will allow Sun Pharma to broaden its product range into novel drugs and biosimilars. Speaking about the deal, Dilip Shanghvi, the executive chairman at Sun Pharma, said that the strengths of both firms are quite synergistic.
With an estimated value of more than $40 billion, Sun Pharma plans to finance the deal using existing cash and bank loans. The company’s emphasis has been on expanding its product line in dermatology, oncology, and obesity medication as it battles declining sales in America due to new tariffs implemented by President Donald Trump.
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Among Indian drugmakers, Sun Pharma is probably the most exposed to the US market. To mitigate the situation, the company has said it is open to expanding its manufacturing presence in the US in the future.
