Sun Pharmaceutical will acquire global healthcare company Organon & Co. in an all-cash transaction valued at $11.75 billion. The company will pay $14 per share to acquire all outstanding shares of Organon. Following the news, the share price of Sun Pharma surged 4% in the early trade today.
“Sun Pharmaceutical today announced that they have entered into a definitive agreement under which Sun Pharma will acquire all outstanding shares of Organon for $14.00 per share in an all‑cash transaction with an enterprise valuation of $11.75 billion,” the company said in its regulatory filing.
Entry into biosimilars, deal to close by early 2027
The deal enables Sun Pharma’s entry into biosimilars as a Top-10 global player. Sun Pharma expects to complete the acquisition in early 2027.
Sun Pharma said the acquisition aligns with its strategy to grow its innovative medicines business while strengthening its presence in established brands and branded generics.
EBITDA and cash flows to nearly double
Following the acquisition, the combined entity is expected to be among the top 25 global pharmaceutical companies, with revenues of around $12.4 billion.
Sun Pharma said it will become a top 3 player in global women’s health and the seventh largest biosimilars company worldwide. The combined business will have a presence in 150 countries, with 18 markets generating over $ 100 million each.
The share of innovative medicines in the overall business is expected to rise to 27%.
Sun Pharma expects the combined entity’s EBITDA and cash flows to nearly double after the transaction. The company said it will fund the deal through a mix of internal accruals and committed bank financing. Post-acquisition net debt to EBITDA is estimated at 2.3 times.
About Organon
Organon was spun off from Merck & Co. (known as MSD outside the US and Canada) in 2021. The company focuses on women’s health, biosimilars and general medicines.
It has a portfolio of more than 70 products and operates across 140 countries, with key markets including the US, Europe, China, Canada and Brazil. Its operations are supported by six manufacturing facilities across the European Union and emerging markets. For the year ended December 2025, Organon reported revenue of $6.2 billion and adjusted EBITDA of $1.9 billion. The company had debt of $8.6 billion and a cash balance of $574 million.