Sun Pharma Eyes Organon for $11.75B Biosimilar Boost

Sun Pharma, an Indian pharmaceutical company, is poised to acquire US-based Organon & Co. in a landmark deal valued at $11.75 billion (approximately Rs 97,500 crore). This acquisition is anticipated to propel Sun Pharma into the ranks of the top 25 global pharmaceutical companies, with a projected combined revenue of $12.4 billion.

The strategic move is designed to gain entry into the burgeoning biosimilars market, which features highly similar versions of approved biological medicines. Furthermore, it aims to significantly strengthen Sun Pharma's position within the women's health sector, a market offering substantial long-term growth and earnings potential.

This transformative transaction is expected to finalize as early as 2027. Sun Pharma intends to finance the acquisition using a combination of its available cash resources and secured financing from banking partners. The deal will proceed via a merger of Organon with a Sun Pharma subsidiary, with Organon continuing as the surviving entity.

For the fiscal year ending December 31, 2025, Organon reported revenues of US$ 6.2 billion and an Adjusted EBITDA of US$ 1.9 billion. The company's financial standing includes US$ 8.6 billion in debt and a cash balance of US$ 574 million. Organon recently completed a product divestiture, generating an upfront payment of $440 million, which will bolster its cash reserves as of March 31, 2026.