Sun Pharma makes mega acquisition of American Organon company for $ 11.75 billion, the biggest foreign deal till date
New Delhi. Sun Pharmaceutical Industries, one of the big pharmaceutical companies of India, has made a big announcement. The company has said that it is going to buy American company Organon & Company. This deal is worth about $ 11.75 billion (about Rs 98 thousand crore) and will be Sun Pharma’s largest foreign acquisition till date. According to the company, under this deal, Sun Pharma will buy 100% shares of Organon. The price of each share has been fixed at $14. In this way, the total enterprise value of the company comes to $ 11.75 billion and the equity value comes to about $ 3.99 billion.
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In this matter, Sun Pharma says that this deal is part of its strategy. Through this, the company wants to increase the business of its innovative medicines. Besides, it will also strengthen the already existing branded medicines and generic medicines business. The special thing about this deal is that with this, Sun Pharma will be able to make a strong entry in the field of biosimilars (cheap alternatives to biological drugs) and can join the big players of the world.
How big will the company become?
The combined company formed after this acquisition can be included in the top 25 pharmaceutical companies of the world. The total annual income of both the companies is estimated to be around $12.4 billion. Apart from this, the company’s hold in women’s health and biosimilar sectors will also be strengthened.
Understand what the organon does?
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Let us tell you that Organon, based in New Jersey, America, works in the field of women’s health, biosimilars and old established medicines. The company has more than 70 products and is present in more than 140 countries. This deal has been approved by the boards of both the companies. Now it is yet to get regulatory approval and consent of shareholders. It is expected that this deal will be completed by the beginning of 2027.
Where will the money come from?
Sun Pharma will raise money for this deal through its internal funds and debt. Regarding this, Sun Pharma Chairman Dilip Sanghvi said that this acquisition will make the company stronger and diversified. At the same time, Managing Director Kirti Ganorkar said that this deal will provide a lot of growth and synergy opportunities.
Understand what will be the impact on the stock market?
It is noteworthy that after this news, there was a rise in the shares of Sun Pharma. On Monday, the company’s shares rose by about 6.7% to reach the level of Rs 1,728.65. Overall, this deal is considered a big step for the Indian Pharma Sector, which will further increase the global strength of Sun Pharma.
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