Sun Pharma to acquire Organon for US$11.75B to dominate global women’s health

INDIA—Sun Pharmaceutical Industries has signed a definitive agreement to acquire Organon in an all-cash transaction valued at US$11.75 billion, marking one of the largest deals in the company’s history.

Under the agreement, Sun Pharma will pay US$14.00 per share for all outstanding Organon shares.

The acquisition is expected to strengthen Sun Pharma’s global footprint while broadening its presence in women’s health, biosimilars, and established medicines.

Organon was created in 2021 after its spinoff from Merck & Co., also known as MSD outside the United States.

Since then, the company has built a portfolio of more than 70 products spanning women’s health and general medicine.

It currently supplies medicines in about 140 countries, giving Sun Pharma access to a broader commercial network and established customer relationships in several key markets.

Expanded global presence

Organon’s strongest markets include Brazil, Canada, China, the European Union, and the United States.

In addition, the company operates six manufacturing facilities across emerging markets and Europe.

Once the transaction closes, Sun Pharma said combined annual revenue will rise to about US$12.4 billion.

The merged business will operate in around 150 countries, with 18 markets each generating more than US$100 million in revenue.

This larger scale is expected to improve market access and strengthen the company’s ability to compete globally.

Financial impact and growth plans

Sun Pharma expects the deal to nearly double its earnings before interest, taxes, depreciation, and amortisation (EBITDA) as well as cash flow.

Following completion, the company projects a net debt-to-EBITDA ratio of 2.3 times, reflecting the financing required for the acquisition.

The company believes Organon’s portfolio and long-standing stakeholder relationships will complement Sun Pharma’s existing business while adding greater diversification across therapeutic areas and geographies.

Sun Pharma Executive Chairman Dilip Shanghvi said the acquisition creates a major opportunity to advance the company’s vision of reaching more people and improving lives.

He added that Organon’s products, capabilities, and international reach align strongly with Sun Pharma’s operations and could help create a broader and stronger platform for future growth.

Regulatory timeline and recent activity

The boards of both companies have approved the agreement. However, the transaction still requires regulatory clearances and approval from Organon shareholders. The companies expect to complete the deal in early 2027.

For the year ended December 2025, Organon reported revenue of US$6.2 billion and adjusted EBITDA of US$1.9 billion.

It also recently completed a product divestiture that brought in US$440 million in upfront proceeds, boosting its cash position in March 2026.

Earlier, in March 2025, Sun Pharma agreed to acquire Checkpoint Therapeutics for an upfront price of US$355 million, adding immunotherapy and targeted oncology assets to its pipeline.