Sun Pharma terms $10 billion Organon acquisition reports 'speculative'

Sun Pharmaceutical said reports of a $10 billion acquisition of US-based Organon are speculative, adding there is no material information requiring disclosure to exchanges

Sun Pharmaceutical Industries on Monday said reports suggesting it is evaluating a $10 billion acquisition of US-based Organon are “speculative”, responding to a rumour verification letter from the BSE.

 

In its communication with the exchanges, Sun Pharma said there is no material event or information that requires disclosure under Regulation 30 of the Sebi (Listing Obligations and Disclosure Requirements) Regulations, adding that it adheres to standards of governance and disclosure and would keep stock exchanges informed of any material developments, as required.

 

The clarification follows recent media reports that Sun Pharma, India’s largest drugmaker by market capitalisation, was exploring a potential takeover of Organon, a women’s health-focused pharmaceutical company with a growing biosimilars portfolio. The reports had pegged the possible transaction value at around $10 billion, including debt, and described the deal as potentially transformative for Sun’s US business. Sun Pharma did not respond to queries sent till the time of press.

 

Organon was spun out of Merck & Co (known as MSD outside the US) in 2021 and is listed on the New York Stock Exchange. The company has a strong presence in women’s health therapies such as contraception and fertility treatments, alongside brands in cardiovascular and respiratory segments, and has been expanding its biosimilars pipeline in recent years.

 

Sun Pharma’s response tempers market speculation around a large, debt-laden cross-border acquisition that, if it were to materialise, would rank among the biggest overseas takeovers by an Indian pharmaceutical company and significantly bolster Sun’s footprint in the US, its most important market.

 

Such a deal would also mark Sun Pharma’s boldest acquisition since its 2014 purchase of Ranbaxy Laboratories, which reshaped the company’s scale and global positioning. Organon’s established US presence and biosimilars assets could, in theory, complement Sun’s specialty and complex generics portfolio, while also accelerating its ambitions in the biologics space.