Sun Pharma shares jump over 7% after firm announces plan to acquire US-based Organon at $11.75 billion valuation

The NSE filing showed that Sun Pharmaceutical’s deal to acquire Organon & Co. will be an all‑cash transaction for $14.00 per share for all outstanding shares of the New Jersey-based company.

“Sun Pharmaceutical Industries Limited and Organon & Co. today announced that they have entered into a definitive agreement under which Sun Pharma will acquire all outstanding shares of Organon for $14.00 per share in an all‑cash transaction with an enterprise valuation of $11.75 billion,” the company informed the stock exchange.

The company also disclosed that it will use a combination of available cash resources and committed financing from banks to fund the acquisition. Post the completion of the deal, the acquired entity will merge with a Sun Pharma subsidiary.

Sun Pharma expects the deal to be concluded in early 2027, subject to the necessary regulatory and shareholder approvals.

As of 11:28 am, Sun Pharma shares were trading 7.37% higher at ₹1,739.80 on Monday, compared to ₹1,620.40 at the previous market close, according to NSE data.

Sun Pharma’s goal behind acquisition move

Sun Pharma’s plan to acquire global healthcare firm Organon & Co. to grow its ‘innovative medicines business’ and enter the biosimilars market as the firm targets long-term value creation in the sector.

According to the US Food and Drug Administration (FDA), a biosimilar is a biologic medication segment which has no clinically meaningful differences from the reference product.

This means a biosimilar medicine is a high-tech, clinically developed biological version of a generic drug using the same type of primary sources. Under this segment, a biosimilar drug is safe and effective to be used as a reference product of a generic drug.

As per the NSE filing, Sun Pharma’s entry into the biosimilars will mark the company as a Top 10 global player in the industry.

“This transaction is a logical next step in strengthening Sun Pharma’s global business. Together, we will become a partner of choice for acquiring and launching new products,” said Kirti Ganorkar, managing director of Sun Pharma, in the official statement.

Ganorkar also highlighted that the company sees strong potential in leveraging Organon’s talent pool, and both businesses combined have the scope of significant revenue upside opportunities in the next few years.

After the acquisition move, the combined entity will have a revenue of $12.4 billion, with its innovative medicine business contributing to 27% of the revenue share and a presence across 150 countries.

Both the board of directors have approved the transaction, and now the deal is subject to customary closing conditions and required regulatory approvals.

Sun Pharma share price

Sun Pharma shares closed 3.55% lower at ₹1,620 after Friday’s stock market session last week, compared to ₹1,680 at the previous market close, according to NSE data. The company announced its acquisition update on Monday morning.

Shares of Sun Pharma have given stock market investors more than 153% returns in the last five years and 65% in the last three-year period, according to the exchange data. However, the company’s stock has lost 9.45% in one year, and over 5% so far in 2026.

Sun Pharma shares have dropped 9.76% in the past month and were trading 3% lower over the last five market sessions on NSE. The company’s market capitalisation (M-Cap) stood at over ₹3.88 lakh crore as of Friday’s closing price.

Organon shares closed 30.93% higher at $11.26 after Friday’s market session on the NYSE last week, according to MarketWatch data.