Indian drugmaker Sun Pharma to buy U.S. firm Organon in $11.75 billion deal
SHANGHAI, CHINA – NOVEMBER 5: People visit the Organon booth during the 7th China International Import Expo (CIIE) held at the National Exhibition and Convention Center (Shanghai) on November 5, 2024 in Shanghai, China. The 7th China International Import Expo (CIIE) opened in Shanghai on November 5. (Photo: Tang Yanjun/China News Service/VCG via Getty Images)
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Sun Pharmaceutical Industries of India Will acquire New Jersey-based Organon & Co signed an all-cash deal valuing the US company at $11.75 billion, including debt.
Indian generic drugmaker to acquire all outstanding shares organon They cost $14 each, according to an exchange application filed Monday. Gunes Pharmaceuticals.
“After a comprehensive review of strategic alternatives, our Board determined that this all-cash transaction offers attractive and immediate value to Organon shareholders,” Organon executive chairman Carrie Cox said in a joint statement.
organonThe company, which was spun off from Merck in 2021, specializes in women’s health and biosimilars and has more than 70 products sold in 140 countries.
According to the press release, the acquisition will help India’s largest drugmaker, Sun Pharma, become one of the world’s top 25 pharmaceutical companies with revenues of $12.4 billion.
“This transaction is a logical next step in strengthening Sun Pharma’s global business,” said Kirti Ganorkar, managing director of Sun Pharma. The acquisition of Organon will help the Indian company scale its pharmaceutical products as the US is a key market.
The acquisition of Organon is part of Sun Pharmaceutical’s strategy to “grow its Innovative Medicines business”, the Indian company said in a statement. According to the European Medicines Agency, an innovative medicine contains an active substance or combination of active substances that has not been previously authorized.
Sun Pharma’s innovative pharmaceutical products currently cover dermatology, ophthalmology and onco-dermatology.
Sun Pharma’s innovative medicines segment for the fiscal year ending March 2025 accounted for 20% of total salesHowever, according to the statement, it will contribute 27% to the turnover with the acquisition.
“Organon’s portfolio, capabilities and global reach are highly complementary to ours,” Dilip Shanghvi, chairman of Sun Pharma, said in the statement.
Organon’s key markets are the United States, Europe, China, Canada and Brazil, supported by six manufacturing sites in the European Union and emerging markets.
Organon shares rose nearly 31% on Friday after Indian newspaper Economic Times, citing sources, reported that Sun Pharma had acquired Organon for about $13 billion. Sun Pharma closed down 3.6%.
