Sun Pharmaceutical Industries will acquire Novel Jersey-based Organon & Co in an all-cash deal that values the U.S. corporation at $11.75 billion.

The acquisition will lift Sun Pharmaceutical’s revenues to $ 12.4 billion, ranking it among the top 25 global pharmaceutical companies.

Organon, which ​was ​spun off from ‌Merck in 2021, specializes in women’s health and biosimilars.

Shares in Sun Pharmaceutical Industries rose more than 7% Monday, after India’s largest drugmaker declared it will acquire Fresh Jersey-based Organon & Co in an all-cash deal that values the U.S. business at $11.75 billion, including debt.

The firm will acquire all outstanding shares of Organon for $14 apiece, according to an exchange filing by Sun Pharmaceutical.

“Following a comprehensive review of strategic alternatives, our Board determined that this all‑cash transaction offers compelling and immediate value to Organon stockholders,” noted Carrie Cox, executive chair at Organon, in the joint statement.

Organon, which ​was ​spun off from ‌Merck in 2021, specializes in women’s health and biosimilars and has more than 70 products that are sold across 140 countries.

The acquisition will help lift Sun Pharma, a generics major, into the top 25 global pharmaceutical companies, with a revenue of $12.4 billion, according to the joint statement. Sun Pharma industry cap stood at more than , according to LSEG data$41 billion as of Friday.

“This transaction is a logical next step in strengthening Sun Pharma’s global business,” commented Kirti Ganorkar, managing director at Sun Pharma. Organon’s buyout will help the Indian business scale its medicine products, as the U.S. is a key sector. This also touches on aspects of investors.

The Organon buyout is part of Sun Pharmaceutical’s strategy “of growing its Innovative Medicines business,” the Indian business stated in a statement. As per the European Medicines Agency, an innovative medicine contains an active substance or a combination of active substances that has not been authorized before.

Sun Pharma innovative medicine products currently cover dermatology, ophthalmology, and onco-dermatology.

In the financial year ending March 2025, the Sun Pharma’s innovative medicine segment accounted for 20% of its total sales, but with the acquisition, it will contribute 27% to the topline, as per the statement.

“Organon’s portfolio, capabilities and global reach are highly complementary to our own,” Dilip Shanghvi, executive chairman of Sun Pharma, mentioned in the release.

Organon’s key markets are the U.S., Europe, China, Canada, and Brazil, which are supported by six manufacturing facilities across the European Union and emerging markets.

Organon shares had risen nearly 31% on Friday after Indian newspaper the Economic Times reported, citing sources, that Sun Pharma was buying Organon for about $13 billion.

String of buyouts

“Deals like this tend to be strategically positive but financially nuanced,” stated Bhavesh Shah, managing director and head of investment banking at Mumbai-based Equirus Capital.

He stated that such “acquisitions can be value accretive over the medium to long term,” if they strengthen the company’s portfolio or sector reach and add scale, but added that in the near term, such deals can lead to “higher leverage integration costs and execution risks.” Furthermore, experts in investors note the continued relevance.

Organon had a debt of $8.6 billion and a cash balance of $574 million at the end of December 2025. Organon has a net debt to earnings before interest, tax, depreciation, and amortization, or EBITDA, ratio of 4 times, while Sun Pharma is “net positive.”

But this isn’t the first time Sun Pharma has acquired a struggling business. In 2007, it made a successful bid to acquire Updated York-listed, Israeli research firm Taro Pharma that was in financial distress.

In 2014, it acquired Ranbaxy Laboratories, a firm facing regulatory actions from the U.S. Food and Drug Administration, from its Japanese owner Daiichi Sankyo Co for a total equity value of around $ 3.2 billion.

Organon is the sixth acquisition made by Sun Pharma over the last 16 years.