Sun Pharma to Acquire Organon

Sun Pharmaceutical Industries Limited said on April 26, 2026, that it agreed to buy Organon & Co. (NYSE: OGN), expanding its women's-health and biosimilars scale and significantly raising its global pharmaceutical standing.

Deal Terms, Financing, and Strategic Scale

Sun Pharmaceutical Industries agreed to acquire all outstanding shares of Organon in an all-cash transaction at $14 a share, valuing the company at an enterprise value of $11.75 billion. The boards of both companies approved the agreement, which will be executed through a merger with a Sun Pharma subsidiary, with Organon surviving the combination. Organon plans to file a proxy statement on Schedule 14A for the merger. The companies expect the transaction to close in early 2027, subject to customary regulatory approvals and a vote by Organon stockholders.

Sun will fund the deal using available cash and committed bank financing from MUFG, JP Morgan, and Citi. The company entered the deal with a net cash position of $3.2 billion at the end of 2025 and a market value near $41 billion. Outside estimates place Organon’s equity value between $4.0 billion and $4.5 billion. Before the announcement, interest in Organon included a consortium formed by EQT and Grünenthal, with Grünenthal also mentioned as a separate bidder.

Organon, headquartered in Jersey City, New Jersey, was spun off from Merck & Co. in 2021. It markets more than 70 products across women's health and general medicines, including biosimilars, in roughly 140 countries. Its largest markets include the U.S., Europe, China, Canada, and Brazil. In 2025, Organon reported revenue of $6.2 billion and adjusted EBITDA (a proxy for operating profit) of $1.9 billion. It carried about $8.6 billion of debt and had roughly $574 million in cash. The company also received a $440 million upfront payment from a product divestiture that contributed to its March 31, 2026 cash balance. Its market capitalization before the deal was about $3 billion.

Sun said the combined company will generate roughly $12.4 billion in pro forma revenue, ranking among the top 25 global pharmaceutical companies. The enlarged group will be among the top three players in women's health and the seventh-largest biosimilars company worldwide. The merged business will reach about 150 countries, with 18 large markets each generating more than $100 million in revenue. Innovative medicines will account for 27% of sales. Management projects pro forma net debt to adjusted EBITDA of 2.3 times and expects combined EBITDA and cash flow to nearly double. Sun’s executive chairman, Dilip Shanghvi, described the transaction as “a significant opportunity for Sun Pharma to build on its vision of Reaching People and Touching Lives.”