Sun Pharma shares jump 5% as India's largest drugmaker to buy U.S. firm Organon
CNBC • • business
Key Points:
- Sun Pharmaceutical Industries announced an all-cash acquisition of New Jersey-based Organon & Co for $11.75 billion, including debt, with a purchase price of $14 per share.
- Organon, specializing in women's health and biosimilars with over 70 products sold in 140 countries, was spun off from Merck in 2021.
- The acquisition will elevate Sun Pharma into the top 25 global pharmaceutical companies, increasing its revenue to $12.4 billion and expanding its footprint in the U.S. market.
- The deal aligns with Sun Pharma's strategy to grow its Innovative Medicines business, increasing the segment's contribution to total sales from 20% to 27% by fiscal year 2025.
- Organon's global presence, manufacturing facilities, and complementary portfolio are expected to strengthen Sun Pharma's global business and product scale.
