Sun Pharmaceutical Industries (SUNP IN) – Event Update – Acquires Organon for USD 11.75bn – BUY
Published on 28 Apr 2026
Sun Pharmaceutical Industries (SUNP)’s acquisition of Organon at an EV of $11.75bn in all cash deal makes its largest acquisition so far. This will enable SUNP an entry into biosimilars and scale up its women’s health presence, further diversifying its branded generics portfolio. The deal also strengthens its access to new markets like China. Though SUNP has acquired company similar to its size at 30% of its value, the growth profile of Organon is muted/flattish over last 2-3 years as compared to 13-15% growth profile for SUNP. On call mgmt. has highlighted for better growth profile of acquired profile through more in licensing deals, new line extensions, cost synergies and tapping more markets, execution of same will be key. The deal is EPS accretive from year 1 and will see significant EPS accretion (+30-35% to our FY28E) for SUNP. Company has managed to enjoy higher multiple compared to peers given its exposure to high growth branded generics portfolio; key will be to grow acquired portfolio than its historical run-rate for stock to outperform. We maintain our BUY rating with TP of 1900/share.
