Sun Pharma places non-binding offer for US-based Organon in its boldest global bet ever

Acquisition Details - Sun Pharmaceutical Industries Ltd has submitted a non-binding offer to acquire Organon, marking its boldest global bet to date [13] - The acquisition financing is secured through bridge loans from three global banks, amounting to $10-14 billion, demonstrating commitment to Organon's board [14] - The due diligence process is set to begin shortly, with a binding bid expected to follow, typically shorter for listed companies [14] Financial Overview - Organon reported a total revenue of $1.60 billion for Q3 2025, a 1% increase, with a full-year revenue guidance lowered to $6.20 billion [9] - Sun Pharma's FY25 revenue was Rs 52,041 crore ($6.19 billion), with an EBITDA of Rs 15,300 crore ($1.82 billion), reflecting a 17.3% increase [9] - Organon has a significant debt of $8.9 billion as of Q2 2025, having inherited $9.5 billion of debt [7] Market Position and Strategy - If successful, the acquisition would be the largest by any Indian pharmaceutical company, surpassing Sun's previous acquisition of Ranbaxy for $4 billion in 2014 [5][14] - Analysts suggest that acquiring Organon would enhance Sun Pharma's position as a branded and innovative drug maker, filling gaps in specialized women's healthcare products and biosimilars [12] - Organon aims to expand its core EBITDA and enhance its R&D pipeline from 2026 onwards, indicating a strategic focus on growth [12] Stock Performance - Sun Pharma's stock was relatively stable at Rs 1,673.55, with a market cap of $46.17 billion, amidst a declining market [6] - Organon's stock opened at $8.67 on the NYSE, significantly below its peak of $17-18 in November 2024, but has surged 28.1% in the past month [8]