SHANGHAI, CHINA – NOVEMBER 5: People visit Organon’s booth during the 7th China International Import Expo (CIIE) held at the National Convention and Exhibition Center (Shanghai) on November 5, 2024 in Shanghai, China. The 7th China International Import Expo (CIIE) opened in Shanghai on November 5th. (Photo provided by: Tang Yanjun/China News Service/VCG via Getty Images)
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India’s Sun Pharmaceutical Industries will acquire New Jersey-based Organon & Co. in an all-cash deal that values the U.S. company at $11.75 billion, including debt.
India’s largest pharmaceutical company acquires all outstanding shares organon $14 per piece, according to Monday’s exchange filing. Sun Pharmaceutical.
“After a comprehensive review of strategic alternatives, the board of directors determined that this all-cash transaction provides attractive and immediate value to Organon shareholders,” Carrie Cox, Organon’s executive chairman, said in a joint statement.
organonwhich was spun off from Merck in 2021 and specializes in women’s health and biosimilars, sells more than 70 products in 140 countries.
According to a joint statement, the acquisition will give generic drug giant Sun Pharma $12.4 billion in sales and make it one of the world’s top 25 pharmaceutical companies. Sun Pharma has a market capitalization of more than $41 billion, according to LSEG data.
“This transaction is a natural next step in strengthening Sun Pharma’s global operations,” said Kirti Ganorkar, Managing Director of Sun Pharma. The acquisition of Organon will help the Indian company expand its pharmaceutical offerings, as the US is an important market.
The Indian company said in a statement that the acquisition of Organon is part of Sun Pharmaceutical’s “growth of innovative medicines business” strategy. According to the European Medicines Agency, innovative medicines contain active substances or combinations of active substances that have not been previously approved.
Sun Pharma’s innovative medicines currently cover dermatology, ophthalmology and dermato-oncology.
In the fiscal year ending March 2025, Sun Pharma’s Innovative Medicines division, which accounted for 20% of total sales, will contribute 27% to sales with the acquisition, according to the statement.
“Organon’s portfolio, capabilities and global reach are highly complementary to ours,” said Dilip Shanghvi, Sun Pharma’s executive chairman, in a release.
Organon’s primary markets are the United States, Europe, China, Canada and Brazil, supported by six manufacturing facilities across the European Union and emerging markets.
Organon shares rose nearly 31% on Friday after Indian newspaper The Economic Times reported that Sun Pharma would buy Organon for about $13 billion, citing people familiar with the matter. Sun Pharma closed 3.6% lower.
