Sun Pharma mulls $10-billion Organon buy to boost US presence: Report

Sun is being advised by a European bank that is preparing a detailed financial proposal for presentation to Organon’s board, the report said

• Sun Pharma may acquire US-based Organon for about $10 billion including debt
• Deal would be the largest cross-border acquisition by an Indian pharma company
• Acquisition could boost Sun Pharma's US market presence and biosimilars segment

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Sun Pharmaceutical Industries Ltd, India’s largest drugmaker by market value and revenue, is weighing a potential acquisition of US-based Organon, a company focused on women’s healthcare and with a growing footprint in the rapidly developing biosimilars segment, a report by the Economic Times.

The possible deal comes nearly ten years after Sun’s landmark acquisition of Ranbaxy, the report said.

The proposed transaction, which could be valued at about $10 billion including debt, would rank among the most ambitious moves by Sun’s billionaire founder Dilip Shanghvi, 70, who has built a reputation for sharp deal-making, ET said. If completed, it would also stand as the largest cross-border acquisition by an Indian pharmaceutical company and significantly strengthen Sun’s presence in the US market, the paper said. One person familiar with the discussions described the deal as potentially “transformational” for the company.

Sun is being advised by a European bank that is preparing a detailed financial proposal for presentation to Organon’s board, according to the report. Organon was carved out of MSD (Merck Sharp & Dohme) in 2021, inheriting debt of $9.5 billion. Since the spinoff, the company has pursued inorganic growth, including the $1.2 billion purchase of Roivant’s immuno-dermatology arm Dermavant in September 2024, further adding leverage to its balance sheet. Organon’s debt stood at $8.9 billion at the end of the second quarter of 2025, and the company has been exploring asset divestments to reduce its debt load.

Organon’s market capitalisation stood at $2.28 billion on the NYSE, with shares closing at $8.76 on Friday, well below their November 2024 peak of $17–18. The stock has surged 28.1% over the past month amid expectations of a successful sale, after plunging 20.9% on October 27 following reports of alleged sales irregularities. Former chief executive Kevin Ali stepped down shortly thereafter, with executive vice president and head of manufacturing and supply Joseph Morrissey appointed interim CEO as the company began the search for a permanent leader.