India’s largest drugmaker by market value said it would pay $14 per share for Organon, representing a premium of more than 24% to Organon’s April 24 closing price, as it accelerates its strategy to deepen exposure to higher-margin specialty therapies including dermatology, oncology and obesity treatments.

The acquisition also strengthens Sun Pharma’s presence in women’s health and gives it entry into biosimilars, while broadening its reach into markets such as China, Brazil and other emerging economies where its footprint has been comparatively limited.

Sun Pharma shares closed 7% higher on Monday, adding 271.36 billion rupees ($2.88 billion) in market value, after rising as much as 9% earlier in the session. Organon shares rose 16% in premarket U.S. trading to $14.06.The deal includes Organon’s net debt of about $8.6 billion as of Dec. 31, 2025.

Sun said it would finance the transaction through a combination of existing cash reserves and committed bank financing.As of the same date, Sun Pharma’s debt stood at roughly $198.4 million, while annual profit was about $1.16 billion, giving it relatively strong balance sheet flexibility compared with the scale of the acquisition.

Analysts said the transaction would materially increase Sun’s earnings capacity and strengthen its long-term strategic positioning.Nuvama Institutional Equities analyst Shrikant Akolkar said the acquisition would effectively double Sun’s revenue and EBITDA by adding approximately $6.2 billion in sales with EBITDA margins of around 30%.

He said the transaction could be 30% to 40% earnings-per-share accretive by fiscal year 2028.“Funding is coming from a strong balance sheet, and debt concerns should ease by the third year,” Akolkar said, adding that the deal positions Sun to become a more dominant global pharmaceutical player by the end of the decade.

Organon’s portfolio includes more than 70 women’s health and general medicine products sold across around 140 countries, offering Sun a steady cash-generating business alongside its specialty drug pipeline.

The acquisition comes as Indian drugmakers with significant U.S. exposure face pressure from shifting U.S. tariff policies and pricing challenges in the generics market, prompting companies to seek stronger margins through branded specialty medicines and broader geographic diversification.

While analysts view the deal as strongly positive for earnings, some noted it may not dramatically alter Sun’s competitive standing in the U.S. market because Organon’s American business remains relatively modest.

Still, the transaction represents a major strategic step for Sun Pharma as it seeks to reduce dependence on traditional generic drug sales and strengthen its position as a global branded and specialty pharmaceuticals player.