Sun Pharma is said to have completed the due diligence that lasted over three months and is finalising a financing package before submission of its firm offer in the coming weeks, the Economic Times report stated.
Last week, at least three global banks were mandated to back the bid. Two other bidders are in the race for the firm — a buyout fund and combination of strategic investor and EU buyout fund, the report stated.
In case it materialises, this will be Sun Pharma’s most ambitious overseas acquisition. It will be the largest global merger and acquisition involving an Indian pharma major.
Organon market capitalisation, debt
Organon has a market capitalisation of $1.5 billion. The US company specializes in women’s health. It spun off from Merck Sharp & Dohme in 2021.
Its institutional holding is at 65.6%, while others hold 34.4% stake.
Its cardio segment is worth $1.1 billion, respirator has a $842 million, while non-opiod, pain, bone and derma segment has $987.
The only key concern is that the firm had a $95 billion debt on books during the MSD spinoff, which has been reduced to $8 billion in 2025. Sun Pharma has $3.2 billion of net cash on its books.
Analysts say
Analysts said the company’s debt-to-EBITDA is at 4x. Its combined debt-to-EBITDA would be 2x at the time of acquisition.
The potential sales estimates for the key drug in Oganon’s portfolio — psoriasis drug VTAMA — is at $400 million to $800 million.
Other acquisitions
March 2025: Sun Pharma acquired Checkpoint Therapeutics with an upfront $355 million, with the deal value reached $416 million. Checkpoint gave Sun Pharma access to the cancer drug Unloxcyt.
January 2024: Sun Pharma acquired the remaining stake in Taro Pharma for $347 million.
2023: Sun Pharma acquired biotech company with derma pipeline Concert Pharma. It also acquired 60% stake in Vivaldis Animal Health in 2023.
Shares of Sun Pharma are trading 3.9% lower on Friday at ₹1,650.3. The stock is the top loser on the Nifty 50 index, and is down 9% in the last one month.
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