Sun Pharma Nears Final Offer For Organon In Largest Overseas Bet

Mumbai-based Dilip Shanghvi-led Sun Pharmaceutical Industries is moving closer to a binding $12 billion offer for Organon & Co. (NYSE:OGN), marking what could become the largest overseas acquisition by an Indian pharmaceutical company.

Sun Pharma Advances Toward Final Organon Offer

Citing people familiar with the matter, the Economic Times reported that Sun Pharma has completed an extensive due diligence process spanning more than three months.

The company is now finalizing financing arrangements before submitting a firm bid in the coming weeks.

An India-based specialty generic pharmaceutical firm has reportedly mandated at least three global banks to support the transaction, signaling serious intent to execute what would be its most ambitious global expansion effort to date.

Financing Talks And Earlier Interest In Organon

The development follows earlier reports that Sun Pharma had been evaluating Organon, a U.S.-based women's health-focused drugmaker spun off from Merck & Co Inc. (NYSE:MRK) in 2021.

In January, the company had submitted a non-binding offer before initiating due diligence.

Sun Pharma was also in discussions with major financial institutions to arrange funding for the potential acquisition.

Market Challenges And Strategic Shift

Organon has faced pressure across its key segments, including women's health, biosimilars, and established medicines.

The company has also been managing a significant debt burden inherited during its spinoff, though it reduced debt to $8 billion in 2025 from $9.5 billion earlier.

Its shares have declined over 19% year-to-date, reflecting investor concerns despite a brief rally earlier this year following news of Sun Pharma's interest.

The company has been reshaping its portfolio, including divesting its JADA post-partum hemorrhage treatment system, as it pivots toward strengthening its core biopharma business.

Strong Balance Sheet Supports Ambition

Sun Pharma appears financially positioned to pursue the deal, with approximately $3.2 billion in net cash.

The company has previously indicated its willingness to deploy capital for large-scale acquisitions.

The potential Organon acquisition aligns with its strategy to evolve into a more innovation-driven, branded pharmaceutical player.

OGN Price Action: Organon shares were up 27.93% at $8.01 at the time of publication on Friday, according to Benzinga Pro data.

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