Sun Pharma is weighing the acquisition of US-based Organon in a deal valued at about $10 billion, a move that would significantly strengthen the Indian drugmaker’s presence in the US market
Sun Pharmaceutical Industries, India’s largest drugmaker by market capitalisation and revenue, is evaluating the acquisition of US-based Organon, a women’s health specialist with a growing footprint in the fast-expanding biosimilars market, The Economic Times reported on Monday, citing people familiar with the matter.
The move comes nearly a decade after Sun’s landmark acquisition of Ranbaxy and, if consummated, would mark the most ambitious takeover yet by Sun’s billionaire founder, Dilip Shanghvi, who has long been regarded as one of India’s sharpest pharmaceutical dealmakers.
The transaction is expected to carry an enterprise value of about $10 billion, including debt, and would become the largest cross-border acquisition ever by an Indian pharmaceutical company, the report said, describing the potential deal as “transformative” for Sun, significantly strengthening its presence in the US market.
Sun has engaged a European investment bank to structure a comprehensive financing package that could be presented to Organon’s board. Organon was spun out of Merck Sharp & Dohme (MSD) in 2021 with an inherited debt load of $9.5 billion and has since pursued inorganic growth. Its $1.2 billion acquisition of Roivant’s immuno-dermatology arm Dermavant in September 2024 further stretched its balance sheet.
As of the end of the second quarter of 2025, Organon’s debt stood at $8.9 billion. The company has since been exploring asset sales to pare leverage.
Organon’s market capitalisation currently stands at $2.28 billion on the NYSE, with shares closing at $8.76 on Friday, well below the $17-$18 levels seen in November 2024. The stock has risen 28.1 per cent over the past month amid expectations of a sale, after plunging 20.9 per cent in late October following reports of sales malpractices. Then chief executive Kevin Ali stepped down shortly thereafter. Joseph Morrissey, executive vice president and head of manufacturing and supply, was appointed interim CEO as the company began its search for a permanent leader.
For the third quarter of 2025, Organon reported revenue of $1.60 billion, up 1 per cent on an as-reported basis. Full-year revenue guidance was trimmed slightly to $6.20 billion, while adjusted EBITDA margin guidance was lowered to around 31 per cent. The company posted revenue of $6.4 billion and EBITDA of $1.95 billion in FY24.
Sun Pharma, which has a market capitalisation of about $45 billion, reported FY25 revenue of Rs 52,041 crore ( around $5.73 billion) and EBITDA of Rs 15,300 crore ( around $1.68 billion), up 17.3 per cent year-on-year. Sun has been in discussions with Organon since the US company intensified its divestment programme, the report said.
In November, Organon agreed to sell its JADA post-partum haemorrhage treatment system to Laborie Medical for up to $465 million as part of a strategic pivot away from women’s health devices towards its core biopharma portfolio. Nexplanon remains Organon’s top-selling product, generating about $179 million in revenue in the second quarter of FY25.
Valuation reset reopens talks
Earlier talks between the two companies stalled due to valuation concerns, but Sun has re-entered discussions following the sharp decline in Organon’s share price. It remains unclear whether Sun would pursue an all-cash deal or a mix of stock and cash, the report said.
There is no certainty that negotiations will culminate in a transaction, the report said, with some expecting competing bids to emerge.
Sun Pharma and Organon did not immediately respond to Firstpost’s request for comment.
Organon has told investors that from 2026 onwards it plans to expand core EBITDA, accelerate strategic growth drivers, maintain deal momentum and strengthen its R&D pipeline.
The company traces its scientific lineage to some of pharma’s most important breakthroughs. Merck’s blockbuster immuno-oncology drug Keytruda originated in Organon’s European research labs before Merck revived its development following the Schering-Plough acquisition in 2009. Keytruda now generates close to $30 billion in annual sales.
Sun, meanwhile, has doubled down on innovation-led growth. In 2025, it acquired Checkpoint Therapeutics for $416 million, gaining access to advanced immunotherapies for cancer. It has since launched Unloxcyt, strengthening its onco-dermatology franchise in the US.
In 2023, Sun acquired Concert Pharmaceuticals for $576 million, securing rights to deuruxolitinib (Leqselvi), a branded treatment for alopecia areata.
If completed, the Organon deal would represent not just Sun Pharma’s biggest bet yet, but a decisive statement of its ambition to reshape its global footprint.
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