New Delhi:Sun Pharma, India's largest drugmaker, has announced its biggest overseas acquisition yet. The company will buy US-based Organon & Co for $11.8 billion (around Rs 98,000 crore) in an all-cash deal. Under the agreement, Sun Pharma will pay $14 per share, which is more than 24% higher than Organon's closing price on April 24. Investors cheered the move, sending shares of Sun Pharmaceutical Industries up 7% on Monday to Rs 1,734 on the BSE.

The acquisition will significantly expand Sun Pharma's global presence. Organon operates in more than 140 markets, including China, and has a strong portfolio in women's health, biosimilars, and established medicines.

Once the deal is completed, Sun Pharma's annual revenue is expected to nearly double to $12.4 billion, while EBITDA could rise to $3.7 billion. This would place the Indian drugmaker among the world's top 25 pharmaceutical companies.

Organon was spun off from Merck & Co. in 2021. It brings with it more than 70 products across women's health, general medicines, and biosimilars, along with six manufacturing facilities worldwide.

Sun Pharma Chairman Dilip Shanghvi said, "We are debt-averse, but we are never risk-averse. Biosimilars is a segment where building capabilities organically would take years; Organon gives us that platform immediately."

“This transaction represents a significant opportunity… Organon’s portfolio, capabilities and global reach are highly complementary to our own,” he added.

Organon executive chair Carrie Cox added, “This all-cash transaction offers compelling and immediate value to Organon stockholders… Sun Pharma is well-positioned to support Organon’s businesses, employees and patients globally.”

The deal will make Sun Pharma one of the top three players globally in women's health, behind Germany's Merck KGaA and Bayer. It will also make the company the world's seventh-largest biosimilars player.

Analysts believe the acquisition is financially sound. Vishal Manchanda of Systematix said, "Sun Pharma's proposed deal with Organon, valued around 6x EBITDA, appears financially disciplined, supported by steady cash flows."

Anurag Kumar is an Assistant Editor at Times Now, where he leads the News Desk and Business Desk, driving coverage across politics, economy and market...View More

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