Already the largest biopharma company in India, generics powerhouse Sun Pharma has doubled in size with its acquisition (PDF) of women’s health leader Organon. With its $11.75 billion buyout, Sun has picked up a drugmaker that matched the $6.2 billion in sales that it generated in 2025.
Sun is paying $14 per share, which is a 24% premium on Organon’s closing price on Friday. It is also a more than 100% premium on Organon’s share price at the start of April. With the agreement, which is expected to close by early 2027, Sun’s stock increased by 7%, while Organon’s jumped by 17%.
The deal, which is the largest ever by an Indian biopharma, the company said, will boost Sun’s portfolio of innovative medicines and will catapult it to No. 7 among the world’s top sellers of biosimilars, the company said in its release.
While Indian companies are exempt from paying tariffs on the generic products they export to the United States, Sun’s U.S. sales have declined recently, prompting it to boost its presence in branded products and biosimilars.
Organon’s stock had been weighed down by “heavy headwinds,” according to Evercore ISI analyst Umer Raffat, citing the New Jersey company’s debt, its oncoming loss of exclusivity of contraceptive implant Nexplanon and its “bad M&A to digest,” which is a reference to Organon’s $1.2 billion 2024 buyout of Dermavant.
The acquisition brought non-steroid skin cream Vtama, which achieved sales of $128 million in 2025, coming up short of the $150 million target the company set at the start of the year.
Since it was spun out of Merck in 2021, Organon’s sales have been stagnant, toggling between $6.2 billion and $6.4 billion for each of the last four years.
The company, however, brings “excellent people from Merck” and an “excellent set of legacy Merck brands,” Raffat wrote in his note to clients.
Source: https://www.fiercepharma.com/pharma/sun-pharma-strikes-biopharmas-largest-deal-26-1175b-buyout-organon