Sun Pharma’s $11.75 billion all-cash deal to acquire global healthcare company, Organon is set to make the Indian pharma major  the 7th largest global biosimilars player. The acquisition, likely to be completed by early 2027, is expected to be EPS accretive as per the Sun Pharma management.

Here are 5 key details about the deal that investors can’t ignore – 

1. Sun Pharma-Organon deal: Offer price at $14 per share 

Under the agreement, Sun Pharma will pay $14 per share to acquire 100% of Organon’s outstanding shares. 

ALSO READ

2. Sun Pharma to be the third biggest player in women’s health

After the acquisition, the combined entity is expected to be among the top 25 global pharmaceutical companies with revenues of about $12.4 billion. It will also become a top 3 player globally in women’s health and the seventh-largest biosimilars company. 

3. Sun Pharma-Organon deal: Merger to Double EBITDA, reduce debt 

Sun Pharma said the deal will significantly strengthen its financial profile. The combined entity’s EBITDA and cash flow are expected to nearly double, which will help reduce leverage over time. Post the transaction, net debt to EBITDA is expected to be around 2.3x.

ALSO READ

Organon reported revenue of $ 6.2 billion and adjusted EBITDA of $ 1.9 billion for 2025. The company currently has debt of $ 8.6 billion.

Image source: Sun Pharma BSE filing)

4. Sun Pharma-Organon Deal structure 

Sun Pharma plans to fund the acquisition through a combination of available cash resources and committed financing from banks. 

5. Sun Pharma-Organon deal: Merged entity to expand footprint across 150 countries 

The merged business will have a presence in 150 countries and a stronger footing in large markets across the US, Europe and emerging economies. Innovative medicines are expected to contribute around 27% of total revenue. 

The transaction will be effected by a merger of Organon with a subsidiary of Sun Pharma, with Organon surviving the merger. 

Conclusion

The acquisition of Organon gives Sun Pharma immediate scale in women’s health and biosimilars, two key growth areas in global pharma. It also strengthens the company’s presence in developed markets and enhances its product portfolio.