Sun Pharmaceutical Industries announced on Friday, July 24, that shareholders of Organon & Co. have approved the proposals in connection with the previously announced merger transaction. According to the exchange filing, Organon is expected to become a wholly owned subsidiary of Sun Pharmaceutical Holdings USA, Inc., an indirect wholly owned subsidiary of Sun Pharma. The shareholder approval marks an important milestone towards completion of the proposed transaction. At the virtual special meeting held on July 23, 2026, 74.51% of the 262,609,433 shares outstanding were represented, providing a quorum for the meeting. Stockholders overwhelmingly adopted the merger agreement and also approved, on a non-binding advisory basis, the compensation arrangements for Organon's named executive officers related to the merger, clearing key shareholder hurdles and reducing execution risk for the transaction.
In April 2026, Sun Pharma announced it would acquire US-based Organon & Co in an all-cash deal at an enterprise valuation of $11.75 billion. As reported by Sun Pharma, the company signed a definitive agreement dated April 26, 2026 under which Sun Pharma will acquire all outstanding shares of Organon for $14 per share in an all-cash transaction. The acquisition remains subject to the satisfaction of the remaining customary closing conditions, including applicable regulatory approvals. The deal, valued at about $9.4 billion including debt, marks the largest acquisition in the Indian pharmaceutical company's history and surpasses its 2014 acquisition of Ranbaxy Laboratories as the biggest deal in the company's history. Sun Pharma has indicated it is hopeful of closing the transaction by early 2027, with the company not indicating any change in its expected completion schedule following the shareholder vote.
Organon is a global healthcare company formed through a spinoff from Merck, known as MSD outside of the US and Canada, in 2021. According to Sun Pharma's statement, upon successful consummation of the transaction, Sun Pharma is poised to be among the top 25 global pharmaceutical companies with a combined revenue of $12.4 billion. The company will also become a top-three company in global women's health and the 7th largest global biosimilar player. Organon serves as a Delaware-based pharmaceutical company focused on women's health, biosimilars and established medicines, operating globally in the prescription drug market with a portfolio targeting therapeutic areas with significant unmet medical need. For Sun Pharma, the acquisition is expected to diversify its revenue base beyond specialty and generics businesses and provide access to a sizeable portfolio of mature brands with steady cash flows.
Commenting on the acquisition, Sun Pharma Executive Chairman Dilip Shanghvi stated that the transaction represents a significant opportunity for Sun Pharma to build on its vision of 'reaching people and touching lives'. Organon Executive Chair Carrie Cox noted that following a comprehensive review of strategic alternatives, the Board determined that the all-cash transaction offers compelling and immediate value to Organon stockholders. Both executives emphasized the complementary nature of the two organizations' portfolios and capabilities.
Post the transaction, Sun Pharma will have presence in 150 countries, with 18 large markets, each generating over $100 million in revenues after the deal is completed. As reported by Sun Pharma, the company will be a leading player in established brands and branded generics, creating a commercial platform for future growth in the global pharmaceutical market. The transaction will significantly expand Sun Pharma's presence in women's health and established medicines, while strengthening its footprint in developed markets. The merger signals a shift in control and integration of Organon into Sun Pharma's global operations, positioning the combined entity as a major player in the pharmaceutical sector.
