Organon $OGN jumps 31% as Sun Pharma $SUNPHARMA offers $14 in $11.75B deal

Organon $OGN surged about 31% in premarket trading on April 27 after Sun Pharma $SUNPHARMA agreed to buy the company for $14 a share in cash, a transaction that values Organon at $11.75B including debt. CNBC reported Sun Pharma’s own shares were up more than 7% in India, a notable response for a buyer taking on its largest acquisition to date. The market is treating the deal as both a scale bet and a portfolio reset.

In the companies’ joint announcement and CNBC’s market report, Sun said the purchase will create a combined pharmaceutical group with roughly $12.4B of revenue. Management said the mix would lift innovative medicines to 27% of sales, make the company a top-3 global women’s-health player, and rank it seventh worldwide in biosimilars. Organon brings more than 70 products sold across 140 countries, with major exposure to the U.S., Europe, China, Canada and Brazil.

The financing and balance-sheet details matter. Sun said the transaction has been approved by both boards and will be funded with available cash and committed bank financing. Organon reported 2025 revenue of $6.2B, adjusted EBITDA of $1.9B, debt of $8.6B and cash of $574M. The companies said the combined entity should exit the deal with net debt to EBITDA of about 2.3x. Sun also argued the acquisition gives it a stronger established-brands business and a faster route into biosimilars at global scale.

The next checkpoint is closing risk. The deal is expected to close in early 2027, subject to regulatory approvals and Organon shareholder approval. Investors will watch whether Sun can integrate a business spun out of Merck in 2021 without losing momentum in women’s health, whether the promised revenue synergies show up, and whether Organon’s debt stack limits how aggressively Sun can pursue the next leg of global expansion.