Sun Pharma offers $13 billion for Organon in shareholder-neutral bid
Sun Pharma, one of India's biggest pharma companies, just offered $13 billion to buy Organon & Co.
The deal is fully financed by three global banks — JP Morgan, MUFG and Citi — to the tune of $12 billion, and aims to boost Sun Pharma's presence in branded and innovative medicines, without shaking up its shareholder structure.
Organon stock jumps nearly 52%
Organon, which split from MSD in 2021, has seen its stock jump nearly 52% in the past month. While Organon carries $8.6 billion in debt, it's expecting solid revenues by 2026.
Sun Pharma plans to use part of its own cash to buy the equity, while refinancing Organon's debt and expand into women's health and biosimilars.
Chairman Dilip Shanghvi says innovation is key as Sun looks to grow globally, even as other bidders circle Organon.