Organon & Co.

Sun Pharma has agreed to pay $11.75 billion for Organon in a merger of companies that each generated sales of $6.2 billion last year. It is the largest deal ever struck by an Indian biopharma company, Sun said. 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. The deal is the largest in the industry so far this year, topping Eli Lilly’s recent buyouts of Centessa Pharmaceuticals and Kelonia Therapeutics, which were for headline values of $7.8 billion and $7 billion, respectively. Also, within the last five weeks as biopharma M&A activity has heated up, Merck put up $6.7 billion to acquire Terns Pharmaceuticals, Biogen picked up Apellis for $5.6 billion and Gilead purchased Tubulis for a headline value of $5 billion.Mostly known as a seller of generics, Sun has built a specialty business in dermatology, ophthalmology and oncology-dermatology in recent years, thanks in part to acquisitions of Concert Pharmaceuticals, for $576 million in 2023, to gain a JAK inhibitor treatment for alopecia, Leqselvi, and Checkpoint Therapeutics, for $418 million last year, to gain cancer immunotherapy Unloxcyt. Organon traces its roots to 1923 in The Netherlands. Schering-Plough acquired the company in 2007, two years before it merged with Merck. Today, the company sells (PDF) more than 70 medicines in roughly 140 countries and manufactures its products at six sites in Europe.“This transaction is a logical next step in strengthening Sun Pharma’s global business,” Kirti Ganorkar, Sun’s managing director, said in a release. “Together, we will become a partner of choice for acquiring and launching new products. Our immediate priorities will be business continuity, disciplined integration and responsible value creation. We see strong potential in leveraging Organon’s talent pool.”

After months of wooing Organon, Sun Pharmaceutical finally signed a definitive agreement to acquire the women's health-focused Merck & Co. spinout in an all-cash deal valued at $11.75 billion — marking the biggest global M&A transaction ever involving a major Indian pharma. "Organon's portfolio, capabilities and global reach are highly complementary to our own, and we believe that bringing the two organisations together can create a stronger and more diversified platform," said Dilip Shanghvi, executive chairman of Sun Pharma.Under terms of the agreement announced Monday, the Indian drugmaker will purchase all issued and outstanding Organon shares at $14 apiece, while also inheriting the latter's $8.6-billion debt. The acquisition, which has been approved by the boards of both companies, is set to conclude early next year.The combined entity is expected to generate revenues of approximately $12.4 billion, placing it among the world's top 25 pharmaceutical companies. Notably, the transaction marks Sun Pharma's entry into biosimilars, ranking it seventh globally in the segment. Sun Pharma — which has steadily established a foothold in the US through its psoriasis treatment Ilumya (tildrakizumab), hair loss therapy Leqselvi (deuruxolitinib) and oncology drug Unloxcyt (cosibelimab-ipdl) — noted that innovative medicines would account for 27% of the consolidated group's revenue.Rumours of the deal first surfaced in January, when The Economic Times reported that Sun Pharma had submitted a non-binding offer of $10 billion for Organon, which the former deemed "speculative in nature." Following a due diligence period, a binding offer of $12 billion was reportedly prepared by Sun Pharma earlier this month. The bid was later said to have been upped to $13 billion after another suitor interested in the takeover emerged — a consortium of German drugmaker Grünenthal and private equity firm EQT.Meanwhile, Organon — which posted a revenue of $6.2 billion last year — had been in pursuit of a strategic transaction following a period of turbulence. CEO Kevin Ali was forced to step down last October following an internal investigation into what the board characterised as "improper" sales practices linked to the company's top-selling Nexplanon contraceptive implant. Organon's biosimilar manufacturing partner Samsung Bioepis was reported to be a potential bidder prior to Sun Pharma, which the South Korean firm quickly denied.

Indian drug giant Sun Pharma has lined up an $11.75 billion acquisition of Organon, a women’s health and biosimilar maker spun out of Merck in 2021. The all-cash deal came in at $14 per share $OGN and is slated to close early next year, the companies said Sunday evening. At nearly $12 billion, it marks the largest pharma M&A deal of 2026 so far and one of the biggest drugmaker transactions in recent years. The merger adds to the blistering pace of biopharma M&A over the past two quarters as drugmakers fill their pipelines. Sun Pharma gains access to a suite of branded products, generics and biosimilars. The move positions it as one of the top three companies in global women’s health , Sun Pharma said. It will also further push the company up the list of top global pharmaceutical makers by revenue. The move comes a couple of quarters after Organon’s CEO departed following “improper” sales practices in which Organon asked some US wholesalers to buy more of its contraceptive product Nexplanon than they needed to help pump up the company’s results. Organon executive chair Carrie Cox said the deal came after a “comprehensive review of strategic alternatives.” Sun Pharma executive chair Dilip Shanghvi said the companies’ portfolios are “highly complementary.” The company said Organon has more than 70 products sold across more than 140 countries. Since being spun off from Merck, Organon has built out a pipeline thanks to external innovation . That includes an up to $1.2 billion acquisition of Roivant’s dermatology subsidiary Dermavant . The company’s expansion efforts have hit a few setbacks in contraceptive work and endometriosis-related pain . Organon came to Merck by way of its 2009 Schering-Plough deal. Merck gained a $9 billion special tax-free dividend in conjunction with the spinoff in 2021.