India’s leading pharmaceutical company Sun Pharmaceutical Industries is now preparing to take a big step, which can take it to new heights at the global level. The company is an American pharmaceutical company Organon & Co. It is moving rapidly towards giving a binding bid of about Rs 1 lakh crore worth about 12 billion dollars to buy the company. If this deal is completed, it could become the biggest foreign purchase of an Indian pharma company so far.
According to the ET report, Sun Pharma has completed its due diligence of Organon in the last three months. Now the company is preparing financing for this deal and can make a formal offer soon. Many international banks are also coming together for this big deal, which will help in funding it. It is clear from this that Sun Pharma no longer wants to be limited to just generic medicines, but also wants to strengthen its hold in the innovative and branded medicines segment.
What does Organon do and why is it special?
Organon is an American company that especially works on medicines and products related to women’s health. It was separated from Merck Sharp & Dohme in the year 2021. However, the company has heavy debt and is facing tough competition in many of its business segments. Despite this, its strong portfolio in women’s healthcare makes it an attractive target.
Why is Sun Pharma taking such a big bet?
Sun Pharma Chairman Dilip Shanghvi has already indicated that the company will now focus on new research and acquisitions to move forward. Sun Pharma can get many benefits by buying Organon. This will give the company entry into the big market related to women’s health, where rapid growth is expected in the future. Besides, the company’s global network will also be strengthened.
Will this deal be easy?
Sun Pharma seems to be ahead in this race, but it is not the only contender. Other global investors and funds are also showing interest in buying Organon. Because of this, this deal is not completely easy and it may take time for the final decision to be reached. Market uncertainty can also affect this process.
If this deal is successful, Sun Pharma will emerge with a new identity not just as a generic pharmaceutical company, but as a global innovative pharma player. This step will also be a big signal for the Indian pharma sector that now the country’s companies are fully prepared to make big acquisitions at the global level.
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