Indian pharmaceutical giant Sun Pharmaceutical is reportedly finalizing a binding offer to acquire Organon, a women’s health-focused Merck & Co. spinoff, in a deal valued at approximately $12 billion.
Key developments of the potential acquisition:
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Negotiation Timeline: Following initial non-binding discussions in January, Sun Pharma has reportedly concluded a three-month due diligence process. Sources indicate that the company has accelerated its efforts over the last 10 days and is currently securing the necessary financing package.
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Organon’s Transition: The company has been exploring strategic alternatives following the resignation of CEO Kevin Ali last October. His departure was linked to an internal investigation into “improper” sales practices involving the contraceptive implant Nexplanon.
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Competitive Interest: Sun Pharma is facing competition in this bid. At least two other consortiums are reportedly interested in acquiring either a portion or the entirety of Organon’s business.
The news of the imminent offer has sparked a significant market reaction, with Organon’s share price surging by as much as 18% following the reports.