Organon's Biosimilar Strategy: A Major Move for Sun Pharma

Sun Pharma Enters Biosimilars Market with $11.75 Billion Acquisition of Organon & Co.

Mumbai: Sun Pharma's acquisition of US-based Organon & Co. for $11.75 billion has propelled the Indian drugmaker into the global biosimilars market, positioning it among the top 10 players in the segment. This strategic move is driven by Sun Pharma's bet on a wave of biologics patent expiries expected to occur over the next decade.

According to Sun Pharma's investor presentation, the acquisition is expected to tap into a significant market opportunity worth $70 billion. This estimate is based on the $320 billion worth of biologics losing patents by 2035, which, when converted to the biosimilars market, presents a substantial opportunity for growth. Organon's biosimilar business has grown at a compound annual growth rate of 13% over the last five years, underscoring the potential for Sun Pharma's foray into this market.

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Organon's biosimilars portfolio generated $691 million in revenue in 2025, accounting for approximately 11% of the company's total revenue. The portfolio spans immunology and oncology therapies for which Organon holds global commercialization rights, with geographic exceptions across eight products. These exceptions are governed by agreements with Samsung Bioepis Co., Ltd and Shanghai Henlius Biotech, Inc, excluding certain key markets, including the European Union, China, and South Korea.

However, biosimilars remain a relatively small and less profitable part of Organon's business. Analysts have noted that the portfolio is not fully integrated, which lowers profitability. Additionally, the US Food and Drug Administration's proposed new biosimilar guidelines may ease entry of new products in the market, potentially reducing the need for commercial infrastructure.

Sun Pharma's push into biosimilars comes after years of regulatory uncertainty. Executive chairman Dilip Shanghvi stated that developing biosimilars in-house would have required six to eight years. The company is now looking beyond Organon's existing portfolio, aiming to use its commercial network to expand into new biotech products. Using Organon's commercial footprint for licensing deals will be one of the biggest long-term levers of the acquisition, according to analysts.

In the near term, investors are focused on over $350 million in expected synergies, a rapidly deleveraging balance sheet, and the expanded global commercial access Sun Pharma gains through the deal.

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