Sun Pharma To Acquire Organon in USD 11.75 Billion Deal, Marks Biggest Indian Pharma Acquisition Ever
Sun Pharmaceutical Industries Ltd. has announced the largest acquisition ever by an Indian pharmaceutical firm, agreeing to acquire US-listed Organon & Co. in an all-cash deal valued at an enterprise value of USD 11.75 billion. The transaction, priced at USD 14 per share, represents a major strategic shift as Sun Pharma accelerates its transformation into a diversified global drugmaker.
Sun Pharmaceutical Industries Ltd. has announced the largest acquisition ever by an Indian pharmaceutical firm, agreeing to acquire US-listed Organon & Co. in an all-cash deal valued at an enterprise value of USD 11.75 billion. The transaction, priced at USD 14 per share, represents a major strategic shift as Sun Pharma accelerates its transformation into a diversified global drugmaker.
The acquisition significantly strengthens Sun Pharma’s footprint across key therapeutic segments, particularly women’s health, established brands and biosimilars. Organon operates in over 140 countries and holds a leadership position in contraceptives and fertility treatments, alongside a portfolio of more than 50 established medicines. This provides Sun Pharma immediate scale in biosimilars and introduces women’s health as a new innovation pillar, complementing its existing strengths in dermatology, ophthalmology and onco-dermatology. Rs 2,000 Crore Investment Will Provide New Impetus to Medicine Manufacturing: CM Yogi Adityanath Distributes Letters of Comfort to Pharma Investors.
Financially, the deal marks a step change in scale. The combined Sun-Organon entity is expected to generate approximately USD 12.4 billion in annual revenue, nearly doubling Sun Pharma’s standalone revenue of USD 6.2 billion in FY25. Combined EBITDA is projected to reach around USD 3.7 billion, improving overall profitability and strengthening the company’s global standing. Boehringer Ingelheim India and NIPER Hajipur Sign MoU to Advance Pharmaceutical Research and Knowledge-Led Collaboration.
Sun Pharma plans to fund the acquisition through a mix of USD 2 to 2.5 billion in cash reserves and USD 9.25 to 9.75 billion in committed bank financing. Despite the size of the deal, leverage is expected to remain manageable, with net debt-to-EBITDA estimated at about 1.8x. Organon’s strong cash flow generation, exceeding USD 1 billion annually before financing, is expected to support rapid deleveraging while allowing continued investment in research and development.
The company expects to unlock synergies of over USD 350 million within two to four years through cost efficiencies, supply chain optimization and expanded market access. Additional growth opportunities are anticipated from cross-selling products and leveraging Organon’s global commercial infrastructure to scale new therapies.
This acquisition builds on Sun Pharma’s track record of executing large deals, including the landmark Ranbaxy Laboratories acquisition in 2014. Over the years, such strategic moves have driven consistent growth, reinforcing confidence in management’s integration capabilities.
Subject to regulatory and shareholder approvals, the deal is expected to close in early 2027. Post-integration, the combined entity will have a presence in major global markets, with 18 countries each generating over USD 100 million in revenue and a workforce of approximately 24,000 employees, positioning Sun Pharma as a stronger global pharmaceutical leader.
(The above story first appeared on LatestLY on Apr 27, 2026 09:19 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).