Sun Pharmaceutical Industries Ltd. is close to finalising a deal to acquire assets of Organon, with an announcement expected soon, sources familiar with the matter have told CNBC-TV18. The proposed transaction is valued at over $12 billion, they said.
The deal is expected to be funded through a combination of debt arranged by global banks and Sun Pharma’s internal cash reserves. Sources added that the company’s prior experience in acquiring and turning around assets such as Ranbaxy and Taro has strengthened its confidence in executing and integrating a transaction of this scale.
The successful integration of Taro’s US business is also seen as a positive indicator for cultural and operational alignment.
Organon, an independent global healthcare company, focuses on improving women’s health and has a diversified portfolio spanning women’s health, biosimilars and established brands. Its portfolio includes therapies in areas such as fertility, contraception, osteoporosis and menopause, along with a presence in biosimilars.
CNBC-TV18 has reached out to Sun Pharma for comment, but a response was awaited at the time of publication.
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Brokerages flag the potential deal as strategically important
Nomura has maintained a ‘buy’ rating on Sun Pharma with a December 2026 target price of ₹1,960, noting that the acquisition could strengthen the company’s presence in women’s health and respiratory segments while enabling entry into biosimilars.
The brokerage added that Organon’s commercial-focused business could integrate well with Sun Pharma’s global footprint and that the transaction is unlikely to dilute its speciality focus. Nomura also expects the deal to be earnings accretive and manageable from a financial standpoint, given Sun Pharma’s strong balance sheet.
Macquarie has reiterated an ‘outperform’ rating on the stock with a target price of ₹2,150 per share, highlighting that the acquisition would add a complementary portfolio, deepen market presence and provide diversification through entry into biosimilars.
The brokerage said the combined entity could see meaningful earnings accretion from the first year, with leverage remaining manageable at around 2.5 times net debt to EBITDA.
It also expects the company to return to a net cash position within three to four years, supported by strong cash generation. According to Macquarie, the deal could enhance Sun Pharma’s commercial presence across key markets, including the US, Europe, China and Japan, while enabling expansion of Organon’s women’s health portfolio in markets such as India.
Shares of the company closed 3.67% lower on Friday, at ₹1,618.50. The stock has declined nearly 10% over the past month.