What is Sun Pharma's interest in Organon?

Sun Pharma has submitted a non-binding offer to acquire Organon, aiming for a significant global expansion.

How is Sun Pharma financing the potential Organon acquisition?

The potential acquisition is backed by bridge loans totaling $10-14 billion from several global banks.

What is Organon's strategic focus?

Organon is divesting certain businesses to focus on its women's health biopharma range, particularly products like Nexplanon.

Home / Business and Economy / Sun Pharma Eyes Organon in $10-14B Mega-Deal

Sun Pharma Eyes Organon in $10-14B Mega-Deal

20 Jan

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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 Pharma Eyes Organon in $10-14B Mega-Deal

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.