Sun Pharma plans to fund the acquisition through a combination of available cash resources (USD 2-2.5 billion) and committed financing from banks (USD 9.25-9.75 billion).
Organon is a global healthcare company formed through a spinoff from Merck, known as MSD outside of the United States and Canada, in 2021. A global leader in women’s health, the company’s portfolio includes more than 70 products across Women’s Health and General Medicines, which includes biosimilars, commercialized across 140 countries, with the U.S., Europe, China, Canada, and Brazil among its largest markets, the company said in a statement.
Organon’s global footprint is supported by six manufacturing facilities across the European Union and emerging markets, reinforcing its scale and reach, it added.
For the year ended 31st December, 2025, Organon reported USD 6.2 billion in revenue and Adjusted EBITDA of USD 1.9 billion.
Organon had debt of USD 8.6 billion and cash balance of USD 574 million. Organon recently closed on a divestiture of a product for which it received an upfront payment of USD 440 million, the net proceeds of which will further contribute to its 31 March 2026 cash balance.
The proposed acquisition of Organon is aligned with Sun Pharma’s strategy of growing its Innovative Medicines business. The combined company becomes a stronger player in Established Brands /Branded Generics business. The deal also enables Sun Pharma’s entry into biosimilars as a Top-10 global player, the company said.
Post the acquisition, Sun Pharma is poised to be among the top 25 global pharmaceutical companies with combined revenue of USD 12.4 billion.
Sun Pharma will become a top 3 company in global Women’s Health, creating a commercial platform for future growth .
It will become the 7th Largest global biosimilar player – with presence in 150 countries, with 18 large markets, each generating over USD 100 million revenues.
“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 organizations 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,” Dilip Shanghvi, Executive Chairman of Sun Pharma, said in a statement.
“This transaction is a logical next step in strengthening Sun Pharma’s global business. Together, we will become a partner of choice for acquiring and launching new products. Our immediate priorities will be business continuity, disciplined integration and responsible value creation. We see strong potential in leveraging Organon’s talent pool. In addition, there is a scope for synergies including significant revenue upside opportunities to be realized over the coming years,” Kirti Ganorkar, Managing Director of Sun Pharma, said.
“Following a comprehensive review of strategic alternatives, our Board determined that this all‑cash transaction offers compelling and immediate value to Organon stockholders. We believe Sun Pharma is well positioned to support Organon’s businesses, employees and patients globally, and to further advance our commitment to delivering impactful medicines and solutions,” Carrie Cox, Executive Chair of Organon, said.
The transaction will be effected by a merger of Organon with a subsidiary of Sun Pharma, with Organon surviving the merger.
The transaction is expected to close in early 2027, subject to customary conditions, including regulatory approvals and Organon stockholder approval.
J.P. Morgan Securities LLC and Jefferies LLC are serving as financial advisors to Sun Pharma.
White & Case LLP is serving as legal advisor and AZB & Partners is serving as legal advisor for India related matters to Sun Pharma.
Citigroup Global Markets Asia Ltd., JPMorgan Chase Bank, N.A. and MUFG Bank, Ltd. are serving as financing banks to Sun Pharma.
Morgan Stanley & Co. LLC is serving as lead financial advisor to Organon, and Goldman Sachs & Co. LLC is serving as financial advisor to Organon. Sullivan & Cromwell LLP is serving as legal advisor to Organon and Cyril Amarchand Mangaldas is serving as legal advisor for India related matters to Organon.
