Sun Pharma Buys Organon: Sun Pharma will buy American company ‘Organon’ for Rs 1 lakh crore, know how the deal happened?

Business Desk – Sun Pharma Buys Organon: Sun Pharma which is India’s largest pharmaceutical company. Organon which is a big American company (its headquarters is in New Jersey). It is going to be bought for Rs 1.10 lakh crore. This is the largest foreign purchase ever by any Indian pharmaceutical company.

Both companies issued a joint statement about the deal on Monday. Under the terms of the agreement, Sun Pharma will purchase all outstanding shares of Organon at a price of $14 per share. This entire transaction will be done in cash. With this purchase, Sun Pharma will join the list of top 25 pharmaceutical companies in the world, expanding its market reach to 150 countries.

Sun Pharma on its way to becoming the world’s 7th largest pharmaceutical company

With its portfolio of biosimilars and biological drugs, Sun Pharma is set to become the world’s seventh largest pharmaceutical company. It will get access to 18 major markets, each of which generates revenues of ₹900 crore.

This deal also includes the outstanding debt of Organon, which is Rs 81,000 crore. However, Sun Pharma has said that after this purchase, the combined revenue of both the companies is estimated to reach Rs 1.16 lakh crore. This transaction is expected to be completed in 2027.

What is Sun Pharma’s position globally?

It is one of the world’s largest generic drug manufacturers. The market capitalization of the company is ₹4 lakh crore. Globally, it offers a portfolio of over 2,000 products. It operates 41 state-of-the-art manufacturing plants across five continents, and its business extends to more than 100 countries.

How big is Organon as a pharmaceutical company?

With a market capitalization of Rs 28,000 crore, Organon was founded in 2021 when it was acquired by pharmaceutical giant Merck & Co. Was separated from. Today, the company has a presence in 140 countries, including China, the US, Canada, Europe and Brazil. 10,000 people work in it.

The company has a portfolio of more than 70 products in the field of women’s health and general medicines. The most special among these is Nexplanon, which is an implant used for contraception. Organon sells its products in 60 countries.

The company was started with a loan of ₹10,000

Sun Pharma’s founder, Dilip Sanghvi (71), is originally from Amreli district of Gujarat. His entire family currently lives in Mumbai. There is an interesting story related to his early days. In 1983, Dilip joined his father Shantilal, who was himself a pharmaceutical businessman. By borrowing Rs 10,000, he along with five friends laid the foundation of Sun Pharma in a single room. At that time Dilip himself worked as his own salesman. Just like a Medical Representative (MR), he would personally meet the doctors and explain their medicines in detail.

In 1993, Dilip planned to launch ‘Clozapine’. This is a medicine which is used in the treatment of schizophrenia. However, they soon discovered that a rival company, Sandoz, was also preparing to launch the exact same drug in 22 cities. Sanghvi immediately changed his strategy and launched his medicine three weeks before the deadline.