Sun Pharma Plans USD 12 Billion Organon Acquisition, Prepares Binding Bid: Report

The Mumbai-based drugmaker, led by Dilip Shanghvi, has spent over three months conducting detailed due diligence after initially submitting a non-binding offer in January. The company is now in advanced stages of securing funds, with at least three global banks reportedly mandated to support the transaction.

If successful, the acquisition would mark a significant strategic shift for Sun Pharma, strengthening its position in branded and innovative medicines while reducing reliance on generics. The move aligns with the company’s long-term focus on specialty and research-driven segments.

Organon, which was spun off from Merck Sharp & Dohme (MSD) in 2021, operates in women’s health, biosimilars, and established medicines. However, the company has been grappling with financial challenges, including a substantial debt burden that stood at around $8 billion in 2025 despite some reduction.

The US-based firm has a diverse portfolio spanning cardiovascular, respiratory, dermatology, bone health, and non-opioid pain therapies, along with its core women’s health offerings. Its key contraceptive brand Nexplanon reported a decline in 2025 sales, partly due to reduced government funding and other pressures, although growth is expected in emerging markets such as Latin America.

Organon has also been restructuring operations, including divesting certain assets to sharpen its focus on women’s health biopharma. At the same time, it continues to face pricing pressures and competition in the generics segment.

Sun Pharma, on the other hand, maintains a strong balance sheet with net cash reserves, enabling it to pursue large-scale acquisitions. The company reported revenues of around Rs 52,000 crore in FY26, with significant contributions from both domestic and US markets. It has also been expanding its specialty pipeline, including through acquisitions such as Checkpoint Therapeutics, which strengthened its oncology portfolio.

While discussions around the deal have seen fluctuations due to global market volatility, recent developments indicate renewed momentum, reports The Economic Times.