Sun Pharma to acquire Organon in an all-cash transaction worth $11.75 billion Enterprise Value

India's largest drugmaker, Sun Pharmaceuticals Ltd., has announced on Monday, April 27, that it has signed a definitive agreement to acquire US-listed Organon for sustained, long-term value creation and complementary portfolios that will enhance its business leverage.

Sun Pharma will acquire 100% of Organon's outstanding equity at an enterprise value of $11.75 billion, it said in an exchange filing.

Shareholders of Organon will be liable to receive $14 per share in cash, which is a 24% premium to the stock's closing price on Friday. Shares of Organon have already doubled in value since April 8 this year, when reports of this transaction first began to surface. This includes a 30% jump in the stock last Friday itself.

CNBC-TV18 had reported on Saturday, April 25, that the deal is one-step closer and that it will be announced soon.

Sun Pharma also said that the proposed acquisition aligns with the company's strategy of growing its innovative medicines business and that it enables the company's entry into Biosimilars as a top-10 global player.

Sun Pharma plans on funding the deal through a combination of available cash resources and committed financing from banks. This transaction will be executed through a merger of Organon with a subsidiary of Sun Pharma and is likely to close in early 2027, subject to customary conditions including approval from Organon's existing shareholders and other regulatory approvals.

Here's how the transaction benefits Sun Pharma:

Organon was created through a spin-off from Merck & Co. in 2025. For financial year 2025, the company reported revenue of $6.2 billion along with an adjusted Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) figure of $1.9 billion.

The company currently has $574 million in cash on the books and debt worth $8.6 billion. It will also receive $440 million from a recent divestment.

Shares of Sun Pharma had ended 3.7% lower last Friday at ₹1,618.5. The stock is down 10% in the last one month.