Sun Pharma buys US-based Organon for $12 billion in biggest-ever overseas pharma deal

New Delhi: In its boldest determination yet, Sun Pharma, India's largest pharma company, has struck the biggest-ever overseas pharma deal, acquiring US-listed Organon & Co for $11.8 cardinal (Rs 98,000 crore) successful an all-cash transaction.The woody broadens Sun Pharma's therapeutic breadth and geographic scope successful 1 sweep, adding implicit 140 high-growth markets including China, and a portfolio astir innovative therapies, including women's health, biosimilars, and bequest brands.Sun Pharma volition wage $14 per share, a premium of implicit 24% to Organon's past closing terms connected April 24 successful 1 of the largest M&A deals by an Indian company. On Monday, Sun Pharma shares closed 7% higher astatine Rs 1,734 connected BSE.

Once completed, the acquisition volition treble Sun Pharma's gross to $12.4 cardinal and its EBITDA to $3.7 billion, ranking it among the apical 25 planetary pharmaceutical companies.Organon, spun disconnected successful 2021 from Merck (known arsenic MSD extracurricular US and Canada), brings portfolio of implicit 70 products crossed women's health, wide medicines and biosimilars, on with six manufacturing facilities worldwide.The woody follows Sun Pharma's proven M&A playbook from the landmark Ranbaxy acquisition successful 2014 to a drawstring of in-licensing deals, which person strengthened its innovative portfolio and delivered a 14% gross CAGR betwixt FY10 and FY25.

Sun president Dilip Shanghvi said: "We are debt-averse, but we are ne'er risk-averse. Biosimilars is simply a conception wherever gathering capabilities organically would instrumentality years; Organon gives america that level immediately.''The woody positions Sun Pharma arsenic the apical 3 subordinate successful women's health, aft German firms Merck and Bayer, and the seventh-largest biosimilars institution successful the satellite -- 2 of the fastest-growing segments. "Sun Pharma's projected woody with Organon, valued astir 6x EBITDA, appears financially disciplined, supported by dependable currency flows," Vishal Manchanda expert astatine Systematix said.