TLDR
- Sun Pharmaceutical Industries submitted a binding, all-cash $12 billion offer to acquire Organon (OGN)
- OGN stock surged 41% to $8.25 on Friday, a day after rising 18% to $6.91 on Thursday
- Sun Pharma has completed over three months of due diligence and is finalizing financing with JPMorgan and MUFG
- If completed, the deal would be the largest overseas M&A transaction by an Indian pharmaceutical company
- Sun Pharmaceutical stock fell 3% in Mumbai following the reports
Organon’s stock has had a wild two-day run. The New Jersey-based women’s healthcare company jumped 41% on Friday morning to $8.25, adding to an 18% gain the day before, after reports emerged that Sun Pharmaceutical Industries had submitted a formal $12 billion takeover bid.
The report came from India’s Economic Times, which said the Mumbai-based drugmaker had moved beyond due diligence and submitted a binding, all-cash offer. Sun Pharma has been working on this deal for more than three months.
Organon’s current market cap sits at around $1.8 billion, making the $12 billion offer a substantial premium over its current valuation.
Financing for the deal is being put together with the help of some major names. JPMorgan and Japanese bank MUFG are among the global institutions supporting Sun Pharma’s funding arrangements.
The Background on Organon
Organon was spun off from Merck in 2021. It focuses on reproductive health, contraception, and fertility, and also carries a portfolio in dermatology, neurology, and cardiovascular conditions.
The company has faced a turbulent stretch. In October 2025, CEO Kevin Ali stepped down after an internal board investigation found what the company described as improper sales practices used to inflate quarterly results.
This isn’t the first time Sun Pharma’s interest in Organon has surfaced. Back in January, the Economic Times reported that Sun Pharma had made a non-binding, all-cash offer and was preparing to start due diligence. Friday’s report marks a clear step forward from that earlier stage.
What This Would Mean for Sun Pharma
A completed deal would make this the largest overseas acquisition ever by an Indian pharmaceutical company â a record-setter for the sector.
Sun Pharmaceutical stock reacted negatively to the news, dropping 3% in Mumbai on Friday. That kind of reaction is common when an acquiring company announces a large, debt-funded purchase.
Neither Organon nor Sun Pharmaceutical responded to media requests for comment at the time of reporting.
OGN had been trading at depressed levels before this week’s jump. The back-to-back gains of 18% and 41% represent a dramatic shift in sentiment around the stock.
As of Friday morning, Sun Pharma is described as being in the final stages of the bid, with financing being locked in alongside the binding offer.
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