Sun Pharmaceutical Industries agreed on 26 April to acquire Organon & Co. for $14.00 per share in cash, a deal that values the New Jersey drugmaker at an enterprise value of $11.75bn.
Why Sun Pharmaceutical Industries Ltd is buying Organon & Co.
Sun said the deal supports its strategy of growing innovative medicines, strengthens its established-brands business and gives it entry into biosimilars as a top-10 global player. The combined group would have about $12.4bn of revenue, rank among the top three in global women's health and operate in 150 countries.
“Following a comprehensive review of strategic alternatives, our Board determined that this all-cash transaction offers compelling and immediate value to Organon stockholders.”
Deal terms and financing
Sun will acquire all of Organon's shares for cash through a merger with a Sun subsidiary, funded from available cash and committed financing from Citigroup, JPMorgan Chase and MUFG. Organon reported 2025 revenue of $6.2bn and adjusted EBITDA of $1.9bn, with debt of $8.6bn. Sun expects post-deal net debt of 2.3 times EBITDA.
Regulatory approvals and timing
Organon shareholders approved the merger at a special meeting on 23 July 2026, which Sun called an important milestone. The deal remains subject to customary conditions, including US antitrust and non-US antitrust and foreign-investment approvals, and is expected to close in early 2027.
Market context
Organon was spun out of Merck in 2021 and sells more than 70 products across women's health and general medicines in about 140 markets. Its board agreed the sale after a comprehensive review of strategic alternatives.
