Sun Pharma Shares Jump 5% as Drugmaker Announces $11.75 Billion Organon Acquisition

Shares of Sun Pharmaceutical Industries rose around 5% on Monday after the company announced an agreement to acquire U.S.-based Organon & Co in an all-cash deal valued at $11.75 billion, including debt.

Under the terms of the agreement, Sun Pharma will purchase all outstanding shares of Organon for $14 per share, marking one of the largest overseas acquisitions by an Indian pharmaceutical company.

Organon, which was spun off from Merck in 2021, focuses on women’s health and biosimilars and markets more than 70 products across 140 countries. The acquisition is expected to significantly expand Sun Pharma’s global footprint and product portfolio.

The deal will increase Sun Pharma’s total revenues to approximately $12.4 billion, positioning the company among the top 25 pharmaceutical firms worldwide. The United States, a key market for both companies, is expected to play a central role in future growth.

Sun Pharma’s management described the acquisition as a strategic move to strengthen its global business and accelerate expansion in innovative medicines. The company has been focusing on building its specialty and innovative product pipeline across segments such as dermatology, ophthalmology, and onco-dermatology.

Following the acquisition, the contribution of innovative medicines to Sun Pharma’s overall revenue is expected to increase from 20% to 27%, reflecting a shift toward higher-value products.

Company leadership noted that Organon’s established presence in major markets including the U.S., Europe, China, Canada, and Brazil complements Sun Pharma’s existing operations. Organon also operates multiple manufacturing facilities across Europe and emerging markets.

The announcement follows a surge in Organon’s share price, which rose significantly ahead of the official confirmation after reports of the deal emerged.

Industry analysts view the acquisition as a major step in Sun Pharma’s global expansion strategy, enabling the company to scale operations, diversify its portfolio, and strengthen its position in key international markets.