Sun Pharma to Acquire US Company ‘Organon’ for ₹1 Lakh Crore: Will Also Sell Several of Its High-Value Patented Drugs; Entire Deal to Be Cash-Based

India’s largest pharmaceutical company, Sun Pharma, is set to acquire the US-based (New Jersey) giant, Organon, for ₹1.10 lakh crore. This marks the largest overseas acquisition ever undertaken by an Indian pharmaceutical company.

Both companies issued a joint statement regarding the deal on Monday. Under the terms of the agreement, Sun Pharma will acquire all outstanding shares of Organon at a price of $14 per share. The entire transaction will be conducted in cash. This acquisition will propel Sun Pharma into the ranks of the world’s top 25 pharmaceutical companies, extending its market reach across 150 countries.

Sun Pharma Set to Become the World’s 7th Largest Pharmaceutical Company

With its portfolio of biosimilars and biological drugs, Sun Pharma is poised to become the world’s 7th largest pharmaceutical company. It will gain access to 18 major markets, each generating a revenue of ₹900 crore. The deal also encompasses Organon’s outstanding debt of ₹81,000 crore. However, Sun Pharma has stated that following the acquisition, the combined revenue of the two entities will amount to ₹1.16 lakh crore. The deal is expected to be finalized in 2027.

Answers to Key Questions Regarding This Deal

Question 1: What is Sun Pharma’s global standing?

Answer: It is one of the world’s largest manufacturers of generic drugs. It currently holds a market capitalization of ₹4 lakh crore. Globally, the company offers a portfolio of over 2,000 products. It operates 41 state-of-the-art manufacturing facilities across five continents, with business operations spanning over 100 countries.

Question 2: How large a pharmaceutical company is Organon?

Answer: With a market capitalization of ₹28,000 crore, Organon was established in 2021 following its spin-off from the pharmaceutical giant, Merck & Co. Today, the company maintains a market presence in 140 countries, including China, the US, Canada, Europe, and Brazil. It currently employs a workforce of 10,000 individuals. They possess a portfolio of over 70 products in the fields of women’s health and general medicines. The most prominent among these is Nexplanon, a contraceptive implant, which Organon markets in 60 countries.

Question 3: Why is India known as the “Pharmacy of the World”?

Answer: Indian medicines account for a 40% share of the US generics market and a 25% share in Europe. In the US, one out of every three medicines consumed is manufactured by an Indian company. Last year alone, medicines worth ₹99,000 crore were exported from India to this region. Companies such as Sun Pharma, Aurobindo, Dr. Reddy’s, and Lupin hold significant market shares in both these regions.

Question 4: How did Sun Pharma become the country’s number one pharmaceutical company?

Answer: Sun Pharma has completed six acquisitions over a period of 16 years. In 2013, Ranbaxy held the number one position in the country; however, Sun Pharma acquired the company in 2014. The company further solidified its global standing in 2025 through the acquisition of the US biopharmaceutical firm, Checkpoint Therapeutics.