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Informist, Monday, Apr. 27, 2026

 

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By Shruti Nair and Gopika B

--Sun Pharma: Acquisition of Organon to help company enter biosimilar market 
--CONTEXT: Comments by Sun Pharma's management on Organon acquisition
--Sun Pharma: See potential for growth in biosimilar segment in coming years 
--Sun Pharma: Organon buy to strengthen co's innovative products portfolio 
--Sun Pharma: Co currently not present in biosimilar segment in India 
--Sun Pharma: See 51% revenue come from generic drugs of established brands
--Sun Pharma: Have little presence in China, Organon to help co establish it
--Sun Pharma: Looking to enter 10 more mkts, including China, South Korea
--Sun Pharma: Co's revenue generation not dependent on one geography 
--Sun Pharma: Organon buy to help in-licensing of new products, scale them
--Sun Pharma: Organon buy to be completed in 8-9 months 
--Sun Pharma: Confident will be able to accelerate repayment of debt
--Sun Pharma: Organon's current debt $8.5 bln, interest rate on net debt 5.5% 
--Sun Pharma: Organon's debt includes long-term bonds, likely to swap 
--Sun Pharma: To leverage Organon's biosimilar portfolio
--Sun Pharma: Believe co's credit rating higher than Organon's 
--Sun Pharma: Focussing on licensing more biosimilar products
--Sun Pharma: Organon sells generic products at premium, maintains mkt shr 
--Sun Pharma: Organon will be EPS accretive from the start 
--Sun Pharma: Organon gives global reach to strengthen innovative business 
--Sun Pharma: To invest in in-licensing of pdts when commercialising them 
--Sun Pharma: Priority is to repay debt with surplus cash flow
--Sun Pharma: See opportunity to commercialise co's products in many mkts 
--Sun Pharma:Debt taken for Organon buy within safety margin, intend to repay 

 

MUMBAI – Sun Pharmaceutical Industries Ltd. expects to leverage its acquisition of US-based Organon & Co. to foray into the biosimilar segment in India, the company's management said in a conference call with analysts Monday. Currently, the US-based pharmaceutical company has a portfolio of eight biosimilar products, which makes up to around $700 million, or 11%, of the company's revenues. Sun Pharmaceutical Industries Monday announced it would acquire Organon for $14 per share in an all-cash transaction with an enterprise valuation of $11.75 billion.

 

Sun Pharmaceutical Industries, which is currently absent from the biosimilar segment in India, expects the acquisition to provide a commercialisation platform to licence new biosimilars. The management highlighted $70 billion potential represented by the biosimilar market on the back of patents, which are set to expire by 2035.

 

The Indian pharmaceutical major also seeks to expand its global reach through the acquisition, hoping to enter 10 new markets, which include China, South Korea, and the European Union, by leveraging Organon's commercial footprint that spans 140 countries.

 

Sun Pharmaceutical's management elaborated on the potential offered by China in particular. "Today all of you know we have almost negligible presence in China. But China is a huge market," the management said. "China has become the world's second biggest market with ($)150 billion, and it's a market growing by 5-7%." The company highlighted that Organon provides a platform for expansion in China, noting that its current sales in China exceed $800 million through eight large brands. 

 

Sun Pharmaceutical also highlighted it sought to strengthen its innovative business line with the acquisition. Further, the company said it would focus on in-licensing of products before commercialising them. 

 

The management also commented on taking on Organon's current debt of $8.5 billion, with an interest of 5.5%. According to Sun Pharmaceutical its credit rating was substantially higher than that of Organon's and it hoped to leverage that to negotiate a better cost of financing the debt. End

 

US$1 = INR 94.22

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Deepshhikha Bhardwaj

 

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