India’s Sun Pharmaceutical Industries has reached an agreement to acquire U.S.-listed Organon & Co (NYSE:OGN) in an all-cash transaction that values the women’s health specialist at roughly $11.75 billion, the companies announced on Sunday.
Under the proposed terms, Organon shareholders will receive $14.00 per share in cash, as Sun Pharma looks to broaden its international presence and reinforce its portfolio across branded generics, innovative therapies and biosimilars.
Shares of Organon surged around 15% in early premarket trading at 04:24 ET on Monday.
The deal will give Sun Pharma access to Organon’s portfolio of more than 70 products spanning women’s health and general medicines, along with its footprint in over 140 countries.
Macquarie Group analyst Kunal described the transaction as “strategically and financially compelling” for Sun.
“The company sees a strong strategic fit as it aligns with its strategy of growing its Innovative Medicines business. Combined entity will have 27% of its revenue from innovative medicines,” he noted. “The combined company also becomes a stronger player in the Established Brands/Branded Generics business.”
“The deal also enables Sun Pharma’s entry into biosimilars as a Top-10 global player,” Kunal added.
Organon, which was spun off from Merck & Co. (NYSE:MRK) in 2021, reported revenue of $6.2 billion and adjusted EBITDA of $1.9 billion for 2025.
Sun Pharma said the combined business would rank among the world’s top 25 pharmaceutical companies, with pro forma revenue of about $12.4 billion. The transaction is also expected to establish the group as a top-three player in global women’s health and the seventh-largest biosimilars company.
The Mumbai-based firm plans to fund the acquisition through a combination of cash and committed bank financing. The deal, which has been approved by both boards, is expected to complete in early 2027, subject to regulatory and shareholder approvals.