In a significant overseas acquisition, Sun Pharmaceutical Industries, India’s largest pharmaceutical company, and US-based Organon & Co have announced that they have entered into a definitive agreement under which Sun Pharma will acquire all outstanding shares of Organon for US$ 14.00 per share in an all‑cash transaction with an enterprise valuation of US$ 11.75 billion (around Rs 1.10 lakh crore).Organon, based in New Jersey and listed on the New York Stock Exchange, is a global healthcare company formed through a spinoff from Merck, known as MSD outside of the US and Canada, in 2021. The acquisition is expected to fortify Sun Pharma’s position in the global pharma market, especially the US.The deal is especially significant given that it comes when the Donald Trump administration is progressively disincentivising foreign pharmaceutical manufacturers, especially makers of non-generics and those shopping in drugs from other manufacturing hubs.The transaction is structured as a merger in which Organon will combine with a subsidiary of Sun Pharma. As part of this process, the subsidiary will be absorbed into Organon, and Organon will continue as the surviving legal entity after the merger is completed. This means that Organon will retain its corporate identity, operations, and structure, while effectively becoming part of Sun Pharma’s overall business through the integration of the subsidiary. infographic generated using AIAcquisition routeSun Pharma said it intends to pay for the acquisition using a mix of its own cash reserves and loans that it has already secured commitments for from banking partners. In other words, part of the purchase price will come from money the company already has on hand, while the remaining amount will be financed through borrowing arrangements that have been pre-approved by banks, ensuring the company has sufficient funds to complete the deal without relying on uncertain future financing.Also in Explained | Despite recovery, why Indian stocks are trailing global indicesA global leader in women’s health, the company’s portfolio includes more than 70 products across women’s health and general medicines, which includes biosimilars, commercialised across 140 countries, with the US, Europe, China, Canada and Brazil among its largest markets. This global footprint is supported by six manufacturing facilities across the European Union and emerging markets, reinforcing its scale and reach.Story continues below this ad“Together, Organon’s general medicines and women’s health franchise reflect the company’s commitment to advancing access and affordability for communities around the world. The proposed acquisition of Organon is aligned with Sun Pharma’s strategy of growing its Innovative Medicines business,” Sun Pharma and Organon said.Entry into biosimilarsThe combined company becomes a stronger player in established brands and branded generics business, they said. The deal also enables Sun Pharma’s entry into biosimilars as a Top-10 global player. “Organon’s portfolio, global footprint and strong stakeholder relationships shall complement Sun Pharma’s existing strengths and enhance long‑term value creation,” the two companies said in a statement.The transaction has been approved by the Boards of Directors of both Sun Pharma and Organon and is subject to customary closing conditions, including receipt of required regulatory approvals and approval by Organon stockholders.“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. We have deep respect for Organon’s mission and look forward to building on its legacy while driving sustainable long‑term growth,” Dilip Shanghvi, Executive Chairman of Sun Pharma, said.Story continues below this adCarrie Cox, Executive Chair of Organon, said, “Following a comprehensive review of strategic alternatives, our Board determined that this all‑cash transaction offers compelling and immediate value to Organon stockholders. We believe Sun Pharma is well positioned to support Organon’s businesses, employees and patients globally, and to further advance our commitment to delivering impactful medicines and solutions.”“Organon has a legacy of deep trust and strong brand equity among HCPs, patients, regulators and other stakeholders,” it said.NewsletterFollow our daily newsletter so you never miss anything important. On Wednesday, we answer readers' questions.SubscribeOrganon revenue at $ 6.2 bnFor the year ended December, 2025, Organon reported US$ 6.2 billion in revenue and Adjusted EBITDA of US$ 1.9 billion. Organon had debt of US$ 8.6 billion and cash balance of US$ 574 million. Organon recently closed on a divestiture of a product for which it received an upfront payment of $440 million, the net proceeds of which will further contribute to its March 31, 2026 cash balance.Sun Pharma said it’s a leading generic company in the US as well as global emerging markets. Its manufacturing facilities are spread across five continents.