The Tamesis
Sun Pharmaceutical Industries Ltd.’s signage hangs outside the company’s corporate office in Mumbai.
© 2014 Bloomberg Financial Limited
Sun Pharmaceutical Industries – controlled by Indian billionaires Dilip Shanvi— has agreed to acquire Organon & Co. in a deal that values the New York-listed health care company at $11.8 billion.
Under the agreement, Sun Pharma will acquire all of Organon’s shares, including debt, in an all-cash deal worth $14 per share, the companies said in a joint statement on Monday. Shares of Sun Pharma rose 9% in afternoon trade in Mumbai.
Sun Pharma entered the United States in 1998, acquiring a stake in Caraco Pharmaceutical Laboratories. The U.S. market accounted for about one-third of the company’s more than $6 billion in revenue in the fiscal year ending March 31, 2025. In May 2025, the company acquired Checkpoint Therapeutics, a US skin cancer drug manufacturer, for US$355 million.
“This transaction represents a significant opportunity for Sun Pharma,” executive chairman Shanghvi said. “Organon’s product portfolio, capabilities and global reach are highly complementary to ours. Combining the two organizations creates a stronger, more diversified platform.”
The acquisition of Organon will more than double the annual revenue of billionaire Dilip Shanghvi’s Sun Pharmaceutical Industries to $12.4 billion and make it one of the world’s top 25 drugmakers. It plans to fund the acquisition through available cash resources and committed bank financing. The transaction is expected to close in 2027, subject to customary conditions, including regulatory approval and Organon shareholder approval. Organon will merge with a subsidiary of Sun Pharma, with the US company becoming the surviving entity.
Organon, which was spun off from Merck in 2021, has a portfolio of more than 70 products across women’s healthcare and general pharmaceuticals, including biosimilars. Its largest markets include Brazil, Canada, China, Europe and the United States, and it has six manufacturing facilities in the European Union and emerging markets.
Shanghvi’s real-time net worth is $24.8 billion, making him one of the richest people in India. In 1983, the son of a drug dealer started Sun Pharma with a $200 loan from his father to produce psychiatric drugs. Today, the company is India’s most valuable listed drugmaker, with a market capitalization of over $44 billion. The company has expanded in recent years through multiple acquisitions, including India’s Ranbaxy Laboratories in 2014 and U.S. Concert Pharmaceuticals three years ago.
