Sun Pharma Eyes Organon In What Could Be India Pharma's Biggest Cross-Border Deal: Report

India-based Sun Pharmaceutical Industries Ltd is reportedly evaluating a imaginable acquisition of Organon & Co (NYSE:OGN), a U.S.-based women's healthcare company.

If it goes through, the woody that could go the largest cross-border transaction ever by an Indian drugmaker, according to radical acquainted with the matter, arsenic cited by The Economic Times.

Sun Pharmaceutical has submitted a non-binding all-cash bid and arranged $10–14 cardinal successful acquisition financing.

If completed, the transaction—valued astatine astir $10 cardinal including debt—would beryllium Sun Pharma's largest acquisition to day and its astir ambitious overseas enlargement since the Ranbaxy deal, importantly strengthening its beingness successful women's wellness biopharma and biosimilars.

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One root described the imaginable woody arsenic "transformative," saying it would importantly bolster Sun Pharma's beingness successful the U.S. market, highlighted News18.

People cited by ET said Sun Pharma has engaged a European slope arsenic an adviser, which is preparing a fiscal connection for Organon's board. Talks are inactive astatine a preliminary stage, and determination is nary certainty that negotiations volition effect successful a transaction.

Organon was spun disconnected from Merck & Co. (NYSE:MRK) successful 2021 with astir $9.5 cardinal successful inherited debt. Since then, the institution has pursued inorganic maturation portion attempting to streamline its equilibrium expanse done plus sales.

Another media study added that Sun Pharma has engaged a European slope arsenic an advisor to operation a broad fiscal proposal.

In September 2024, Organon acquired Dermavant from Roivant Sciences (NASDAQ:ROIV) for $1.2 billion. More recently, it sold its JADA post-partum hemorrhage strategy to Laborie Medical for $465 cardinal arsenic portion of its divestment of non-core assets.

As of the extremity of the 2nd 4th of fiscal 2025, Organon's indebtedness stood astatine $8.9 billion.

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ET reported that Sun Pharma re-engaged successful talks aft Organon's stock terms astir halved, having earlier paused discussions owed to valuation concerns. It remains unclear whether Sun Pharma would prosecute an all-cash connection oregon a premix of currency and stock.

People acquainted with the substance highlighted that negotiations whitethorn not pb to a woody and that a bidding warfare is besides possible. If completed, the combined entity would person pro forma leverage of astir 2.5 times nett indebtedness to EBITDA.