New Delhi | Sun Pharmaceutical Industries Ltd on Monday said it will acquire US-based Organon & Co in an all-cash deal at an enterprise valuation of USD 11.75 billion.
The company has signed a definitive agreement under which Sun Pharma will acquire all outstanding shares of Organon for USD 14 per share in an all-cash transaction with an enterprise valuation of USD 11.75 billion, Sun Pharmaceutical Industries said in a statement.
Organon is a global healthcare company formed through a spinoff from Merck, known as MSD outside of the US and Canada, in 2021.
Upon successful consummation of the transaction, Sun Pharma is poised to be among the top 25 global pharmaceutical companies with A combined revenue of USD 12.4 billion, a leading player in established brands and branded generics.
Commenting on the acquisition, Sun Pharma Executive Chairman Dilip Shanghvi said, "This transaction represents a significant opportunity for Sun Pharma to build on its vision of 'reaching people and touching lives. Organon's portfolio, capabilities and global reach are highly complementary to our own, and we believe that bringing the two organisations together can create a stronger and more diversified platform." Organon Executive Chair Carrie Cox said, "Following a comprehensive review of strategic alternatives, our Board determined that this all-cash transaction offers compelling and immediate value to Organon stockholders.
We believe Sun Pharma is well-positioned to support Organon's businesses, employees and patients globally, and to further advance our commitment to delivering impactful medicines and solutions." Post the transaction, Sun Pharma said it will also become a top-three company in global women's health, creating a commercial platform for future growth and the 7th largest global biosimilar player.
It will have presence in 150 countries, with 18 large markets, each generating over USD 100 million in revenues after the deal is completed.
The transaction has been approved by the Boards of Directors of both Sun Pharma and Organon and is subject to customary closing conditions, including receipt of required regulatory approvals and approval by Organon stockholders, the statement said.
