Sun Pharma Drops 4% as Organon Acquisition Nears Completion

Sun Pharmaceutical Industries Limited Shares Fall Amid Reports of Binding $12 Billion Offer for Organon & Co.

Shares of Sun Pharmaceutical Industries Limited fell nearly 4 percent in morning trade on Friday after reports suggested the company is moving ahead with a binding $12 billion offer for Organon & Co. According to data from the National Stock Exchange (NSE), Sun Pharma was trading at Rs 1,653.50, down Rs 63.60 or 3.70 percent.

The Economic Times reported that the Mumbai-based drugmaker has completed over three months of detailed due diligence and is now finalising a financing package ahead of submitting a firm offer in the coming weeks. At least three global banks were reportedly mandated last week to support the bid, which could become the largest global M&A deal involving an Indian pharma company if it materialises.

Sun Pharma had made a non-binding offer earlier before initiating due diligence in January. Chairman Dilip Shanghvi has emphasised the need for Indian drugmakers to expand into innovative research while maintaining their strength in generics, with acquisitions seen as a key lever for scaling up.

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Organon has been on Sun Pharma's radar for some time, but a more serious evaluation began towards the end of November, when the US-based firm sold its JADA post-partum haemorrhage (PPH) treatment system to Laborie Medical for up to $465 million as part of a strategy shift towards its core women's health biopharma portfolio.

Sun Pharma has not issued any official statement on the matter so far.