Sun Pharma Industries will buy US drugmaker Organon & Co, in an all-cash deal valued at about $11.75 billion including debt, for the largest overseas acquisition by an Indian pharmaceutical company.
The move comes as Sun, India’s biggest drugmaker by market value, steps up a push into higher-margin specialty medicines with a sharper focus on areas such as dermatology, oncology and obesity to offset declining U.S. sales.
Shifting tariff policies in the United States have squeezed margins for one of India’s drugmakers most exposed to the American market, prompting it to keep open the option of expanding manufacturing there.
Though positive from an earnings standpoint, the deal is unlikely to materially change Sun’s position in the United States, where Organon has a relatively small footprint, said Shrikant Akolkar of Nuvama Institutional Equities.
The acquisition will double Sun’s revenue and EBITDA, adding $6.2 billion in sales with robust 30% EBITDA margins, Akolkar said, adding that the deal is projected to be 30% to 40% EPS accretive by FY28.
Sun Pharma’s shares settled up 7% for a boost of 271.36 billion rupees ($2.88 billion) in market value, but off a rise of as much as 9% after the news.
“It also gives Sun access to markets such as China, Brazil and other emerging regions where its presence has been limited, helping it scale up as a branded and specialty drugs player,” the pharma analyst added.
Sun Pharma, valued at more than $40 billion, said it would buy Organon for $14.00 a share, or a premium of more than 24% to the April 24 closing price.
Shares of Organon climbed 16% to $14.06 in premarket trade.
It plans to fund the deal through cash and committed bank financing, with Organon carrying net debt of about $8.6 billion as of December 31, 2025.
For the same period, Sun’s debt was roughly $198.4 million and profit stood at $1.16 billion.
With funding coming from a strong balance sheet, debt concerns should ease by the third year, positioning Sun as a more dominant player by decade’s end, Akolkar added.
The acquisition is also expected to strengthen Sun’s women’s health portfolio and mark its entry into biosimilars.
It will gain access to Organon’s portfolio of more than 70 women’s health and general medicines sold across about 140 countries, adding global scale and a steady cash‑generating business alongside its specialty pipeline.