Sun Pharmaceutical Industries has announced the acquisition of US-based Organon & Co in an all-cash deal valued at $11.75 billion, including debt, marking one of the largest outbound acquisitions by an Indian pharmaceutical company.
As part of the transaction, Sun Pharma will acquire all outstanding shares of Organon at $14 per share, representing a premium of over 24% to its last closing price. Organon carried $8.6 billion in debt as of December 31, 2025.
The acquisition will significantly strengthen Sun Pharma’s presence in women’s health, providing access to Organon’s portfolio of 70+ products across women’s health and general medicines, with a footprint in over 140 countries.
Originally spun off from Merck & Co in 2021, Organon has been focusing on women’s health and biosimilars, though it recently reported a 5% decline in quarterly revenue and a net loss of $205 million.
According to Dilip Shanghvi, the deal will create a more diversified and globally competitive platform, combining complementary portfolios and capabilities.
Sun Pharma plans to finance the acquisition through a mix of internal cash reserves and committed bank financing.
The company has been actively strengthening its portfolio in dermatology, oncology, and obesity therapies, while navigating pricing pressures and tariff-related challenges in the US market, where it has significant exposure.
With this acquisition, Sun Pharma is also looking to expand into biosimilars and innovative medicines, while potentially increasing its manufacturing footprint in the United States to mitigate external risks.
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