Sun Pharma terms $10-billion Organon buy report as 'speculative'

Sun Pharma

• Sun Pharma called reports of a $10B Organon acquisition "speculative"
• No material event or information requires disclosure, Sun Pharma stated
• Organon shares rose 28% amid investor anticipation of a potential sale

Did our AI summary help?

Sun Pharma on Monday called the news report about the company evaluating $10-billion acquisition of US drugmaker Organon as "speculative".

"The information set out in the article is speculative in nature and there is no material event or information that requires disclosure," Sun Pharma said in a statement to stock exchanges.

The Economic Times on Monday reported citing people familiar with the matter that Sun Pharma is evaluating a takeover of Organon & Co. in a transaction that could be valued at about $10 billion including debt, a move that would mark the biggest overseas acquisition ever by an Indian drugmaker.

The report said the deal would give India’s largest pharmaceutical company by market value a stronger commercial base in the US—its largest market—and expand its presence in women’s health and the fast‑growing biosimilars segment. Organon, spun off from Merck in 2021 with a sizeable debt load, has been divesting assets to streamline its balance sheet and refocus on core biopharma operations. Its market value has more than halved over the past year, prompting renewed buyer interest, the newspaper reported.

Sun Pharma has hired a European bank to help structure financing for the potential acquisition, ET said. While discussions have picked up as Organon’s share price weakened, there is no certainty the talks will result in a transaction. The buyer may consider an all‑cash bid or a combination of stock and cash, ET reported, adding that rival interest could still emerge.

For Sun, the deal would represent its boldest global move since its purchase of Ranbaxy Laboratories in 2014.

The potential acquisition of Organon would allow the drugmaker to significantly expand its US scale in specialty and branded medicines, while also broadening its women’s health footprint—a category where Organon has long‑established leadership. The deal would further strengthen Sun’s position in the consolidated global biosimilars market, giving it access to Organon’s portfolio developed with Samsung Bioepis, and diversify its US operations beyond dermatology and ophthalmology into higher‑margin therapeutic areas. Absorbing Organon could also help Sun accelerate its shift toward higher‑margin branded and specialty products in the US market, where it has launched several innovative therapies over the past few years.

Investor anticipation around a potential sale has already driven Organon’s shares up 28% over the past month, reversing part of the steep losses the stock suffered earlier.

Organon generated $6.4 billion in revenue in FY24, while its biosimilar portfolio, developed with Samsung Bioepis, contributed around $660 million last year. The US drugmaker inherited $9.5 billion in debt at its 2021 spin‑off and still carried $8.9 billion in borrowings by Q2 2025. It has been actively selling assets to cut leverage.

It recently sold its postpartum hemorrhage device to Laborie Medical—to pivot more aggressively toward women’s health biopharma and biosimilars.