India's Sun Pharma to buy Organon in $11.75 billion deal

MUMBAI: India’s Sun Pharmaceutical on Monday said it had agreed to buy women’s healthcare firm Organon in a deal that values the US drugmaker at $11.75 billion.

Sun Pharma will buy all of Organon’s outstanding shares for $14 each in an all-cash transaction, the firms said in a joint statement.

The acquisition has been approved by the boards of both companies and is expected to close in “early 2027”, after receiving necessary regulatory and stockholder approvals.

The deal is “aligned with” Sun Pharma’s plan to grow its “innovative medicines” business, the statement added, noting that it also enables the Indian giant’s entry into biosimilars as a “top 10” global player.

“Organon’s portfolio, capabilities and global reach are highly complementary to our own,” Sun Pharma chairman Dilip Shanghvi said in a statement.

“We believe that bringing the two organisations together can create a stronger and more diversified platform.”

Organon chair Carrie Cox said the buyout offers “compelling and immediate value” to shareholders.

India, often referred to as the pharmacy of the world, exported drugs worth more than $31 billion last fiscal year.

While Indian firms have historically made money by selling cheap, generic versions of established drugs, they have tried to make inroads into higher-margin complex therapies in recent years.