INDIA's Sun Pharmaceutical said on Monday it has agreed to buy women’s healthcare firm Organon in a deal that values the US drugmaker at $11.75 billion.
Under the agreement, Sun Pharma will acquire all of Organon’s outstanding shares for $14 each in an all-cash transaction, the companies said in a joint statement.
The deal has been approved by the boards of both companies and is expected to close in “early 2027”, subject to regulatory and stockholder approvals.
The statement said the deal is “aligned with” Sun Pharma’s plan to expand its “innovative medicines” business. It added that the acquisition will also enable the company’s entry into biosimilars as a “top 10” global player.
“Organon’s portfolio, capabilities and global reach are highly complementary to our own,” Sun Pharma chairman Dilip Shanghvi said in a statement.
“We believe that bringing the two organisations together can create a stronger and more diversified platform.”
Organon chair Carrie Cox said the buyout offers “compelling and immediate value” to shareholders.
India, often referred to as the pharmacy of the world, exported drugs worth more than $31 billion last fiscal year.
Indian firms have traditionally earned revenue from selling low-cost generic versions of established drugs, but have been trying to expand into higher-margin complex therapies in recent years.
(With inputs from agencies)
