India’s largest drugmaker, Sun Pharmaceutical, has announced its plan to buy New Jersey-based Organon in a $11.75 billion deal.
As part of the deal, Sun Pharmaceutical will buy all outstanding shares of Organon for $14.00 a piece.
Organon shares surged nearly 31% on Friday after reports emerged that Sun Pharma was acquiring the company for around $13 billion.
The acquisition will lift Sun Pharmaceutical’s revenues to $ 12.4 billion, ranking it among the top 25 global pharmaceutical companies.
Dilip Shanghvi, Executive Chairman of Sun Pharma, told investors, “This transaction represents a significant opportunity for Sun Pharma to build on its vision of Reaching People and Touching Lives. Organon’s portfolio, capabilities and global reach are highly complementary to our own, and we believe that bringing the two organizations together can create a stronger and more diversified platform. We have deep respect for Organon’s mission and look forward to building on its legacy while driving sustainable long‑term growth.”
Kirti Ganorkar, Managing Director of Sun Pharma, said, “This transaction is a logical next step in strengthening Sun Pharma’s global business. Together, we will become a partner of choice for acquiring and launching new products. Our immediate priorities will be business continuity, disciplined integration and responsible value creation. We see strong potential in leveraging Organon’s talent pool. In addition, there is a scope for synergies including significant revenue upside opportunities to be realized over the coming years.”
Carrie Cox, Executive Chair of Organon, commented, “Following a comprehensive review of strategic alternatives, our Board determined that this all‑cash transaction offers compelling and immediate value to Organon stockholders. We believe Sun Pharma is well positioned to support Organon’s businesses, employees and patients globally, and to further advance our commitment to delivering impactful medicines and solutions.”
Organon was formed in 2021 through a spinoff from Merck, which is known as MSD outside the United States and Canada.
Shares in Sun Pharma rose more than 7% following the announcement.
By CEO NA Editorial Staff
