Sun Pharma Weighs $10 Bn Organon Acquisition to Deepen US Pharma Presence

Industry observers note that specialised women’s healthcare and biosimilars represent gaps in Sun’s current US portfolio, making the deal potentially “orbit-changing” for its long-term positioning.

Sun Pharmaceutical Industries, India’s largest drugmaker by market capitalisation, has been in discussions to acquire Organon, a women’s healthcare-focused pharmaceutical company with a growing biosimilars business.

The talks come almost a decade after Sun Pharma acquired Ranbaxy and, if completed, would represent the largest overseas pharma acquisition by an Indian company.

The proposed valuation of about $10 billion includes Organon’s substantial debt and reflects a renewed interest from Sun after Organon’s share price declined sharply over the past year.

Organon was spun off from Merck Sharp & Dohme in 2021 with an inherited debt of about $9.5 billion. Since then, it has pursued asset sales and selective acquisitions to stabilise its balance sheet and sharpen its strategic focus.

For the third quarter of 2025, Organon reported revenue of $1.60 billion, with full-year revenue guidance revised to around $6.20 billion and adjusted EBITDA margins guided at about 31%. Its portfolio is anchored in women’s health brands such as Nexplanon, Nuvaring and Follistim, alongside a biosimilars lineup that contributed roughly $660 million in annual sales. These assets are seen as a strong strategic fit for Sun Pharma, which has been steadily building its US-branded and innovative pharma business.

Sun Pharma reported FY25 revenue of ₹52,041 crore ($6.19 billion) and EBITDA of ₹15,300 crore ($1.82 billion), supported by a low-debt balance sheet and cash reserves of around ₹20,000 crore. If the Organon acquisition goes through, the combined entity’s leverage is expected to remain manageable at about 2.5 times net debt to EBITDA.

Industry observers note that specialised women’s healthcare and biosimilars represent gaps in Sun’s current US portfolio, making the deal potentially “orbit-changing” for its long-term positioning.

While negotiations may not necessarily result in a deal and competition from other bidders remains possible, the discussions highlight how Indian pharma majors are increasingly targeting scale, speciality products and digital health-aligned growth in mature markets.

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