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Sun Pharma Eyes Organon in $10-14B Mega-Deal
20 Jan
Summary
- Sun Pharma submitted a non-binding offer to acquire Organon.
- The deal is financed with $10-14 billion in bridge loans.
- Organon is focusing on biopharma while divesting devices.
Sun Pharmaceutical Industries Ltd. has submitted a non-binding offer to acquire US-headquartered Organon, marking its most ambitious global expansion. The company has secured acquisition financing through bridge loans from international banks, ranging from $10 to $14 billion, demonstrating its commitment. Following this initial bid, a due diligence process is expected to commence shortly, paving the way for a potential binding offer.
This move intensifies Sun Pharma's pursuit of Organon, a company that recently divested its JADA post-partum haemorrhage treatment system to focus on its women's health biopharma offerings, including its top-selling product Nexplanon. Organon, spun off from Merck Sharp & Dohme in 2021, has been seeking to divest businesses amidst existing debt and a strategic pivot.
If successful, this acquisition would be the largest ever by an Indian pharmaceutical company, positioning Sun Pharma more strongly in branded and innovative drug manufacturing. The deal would significantly enhance Sun Pharma's portfolio, particularly in specialized women's healthcare and biosimilars, areas previously identified as gaps in its US market presence.
