Sun Pharmaceutical Industries has signed a definitive agreement to acquire Organon in a transaction with an enterprise valuation of $11.75bn in cash, paying $14.00 per share for all outstanding shares.
Organon, created through a spinoff from Merck & Co (MSD) in 2021, distributes more than 70 products across women’s health and general medicines, including biosimilars, reaching 140 countries.
The company’s key markets include Brazil, Canada, China, the European Union (EU), and the US. Its manufacturing network comprises six facilities in emerging markets and the EU.
Following completion of the transaction, Sun Pharma will have a combined revenue of $12.4bn.
The company will operate across 150 countries, with 18 markets exceeding $100m in revenues each.
The deal is projected to nearly double its earnings before interest, taxes, depreciation and amortisation (EBITDA) and cash flow, resulting in post-transaction net debt/EBITDA of 2.3×.
Organon’s portfolio and stakeholder relationships are expected to complement Sun Pharma’s business.
The boards of both companies have approved the transaction. The agreement remains subject to regulatory and Organon stockholder approvals, with closing projected for early 2027.
Sun Pharma executive chairman Dilip Shanghvi said: “This transaction represents a significant opportunity for Sun Pharma to build on its vision of Reaching People and Touching Lives.
“Organon’s portfolio, capabilities and global reach are highly complementary to our own, and we believe that bringing the two organisations together can create a stronger and more diversified platform.
“We have deep respect for Organon’s mission and look forward to building on its legacy while driving sustainable long‑term growth.”
Organon reported revenue of $6.2bn and adjusted EBITDA of $1.9bn for the year ending December 2025.
The company recently completed a product divestiture with $440m in upfront payment, enhancing its March 2026 cash balance.
In March 2025, Sun Pharma agreed to acquire Checkpoint Therapeutics, a specialist in immunotherapy and targeted oncology treatments, for an aggregate upfront price of $355m.
