Sun Pharmaceutical Industries has announced that it will acquire U.S.-based Organon & Co in an all-cash transaction worth around $11.75 billion, including debt. The deal represents the largest overseas acquisition ever completed by an Indian pharmaceutical company.
The acquisition comes as Sun Pharma, India’s most valuable drugmaker by market capitalization, accelerates its shift toward higher-margin specialty medicines. The company is increasingly focusing on key therapeutic areas such as dermatology, oncology, and obesity treatment, in an effort to strengthen growth and offset weakening sales in the U.S. market.
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Shifting U.S. tariff policies have put pressure on profit margins for one of India’s most U.S.-exposed drugmakers, prompting it to keep open the possibility of expanding its manufacturing footprint in the United States.
While the acquisition is expected to be positive from an earnings perspective, analysts note it is unlikely to significantly alter Sun Pharmaceutical Industries’ position in the U.S. market, as Organon & Co currently has only a limited presence there, according to Shrikant Akolkar of Nuvama Institutional Equities.
The deal is projected to substantially boost Sun Pharma’s financial scale, potentially doubling its revenue and EBITDA by adding around $6.2 billion in sales with strong EBITDA margins of about 30%. Akolkar further estimates that the acquisition could be 30% to 40% earnings-per-share (EPS) accretive by fiscal year 2028.
Sun Pharmaceutical Industries shares closed about 7% higher, adding roughly 271.36 billion rupees ($2.88 billion) in market value, although they had earlier surged by as much as 9% following the announcement before paring gains later in the session.
“It also gives Sun access to markets such as China, Brazil and other emerging regions where its presence has been limited, helping it scale up as a branded and specialty drugs player,” the pharma analyst added.
Sun Pharmaceutical Industries, valued at more than $40 billion, said it will acquire Organon & Co at $14.00 per share, representing a premium of over 24% to the April 24 closing price.
Following the announcement, Organon shares rose 16% to $14.06 in premarket trading.
The company plans to finance the deal through a combination of cash reserves and committed bank financing. As of December 31, 2025, Organon reported net debt of approximately $8.6 billion.
In comparison, Sun Pharma’s own debt stood at around $198.4 million for the same period, while its net profit was reported at $1.16 billion.
With the deal being backed by a strong balance sheet, concerns around debt are expected to ease within three years, potentially positioning Sun Pharmaceutical Industries as an even more dominant global player by the end of the decade, according to Akolkar.
The acquisition is also likely to significantly expand Sun Pharma’s presence in women’s health while marking its entry into the biosimilars segment. It will provide access to Organon & Co’s portfolio of more than 70 women’s health and general medicines marketed across nearly 140 countries. This addition is expected to enhance Sun Pharma’s global scale and strengthen its mix of stable, cash-generating products alongside its growing specialty medicines pipeline.
