Dilip Shanghvi-led Sun Pharmaceutical Industries has agreed to acquire Organon & Co. in an all-cash deal valued at $11.8 billion, marking a significant expansion into the US market.
Under the agreement, Sun Pharma will purchase Organon at $14 per share, including its debt. The acquisition is expected to scale up the company’s global operations, with combined annual revenue projected to exceed $12 billion.
The company said it plans to finance the transaction through internal accruals and bank funding. The deal is expected to close in 2027, subject to regulatory and shareholder approvals.
Background
Shanghvi founded Sun Pharma in 1983 with a modest loan from his father. The company initially focused on psychiatric medicines before expanding globally through a series of acquisitions, including Ranbaxy Laboratories in 2014.
Strategic significance
The United States already accounts for a significant share of Sun Pharma’s revenue. The acquisition of Organon, with its established global portfolio, is expected to strengthen the company’s presence in key international markets and position it among leading global drugmakers.
