Sun Pharma Said to Make $13 Billion All-Cash Offer for Organon

Overview

• Organon shares jumped about 25% in Friday trading following Thursday’s report that Sun Pharmaceutical submitted a $13 billion all-cash offer reportedly backed by JPMorgan, MUFG, and Citi.
• German drugmaker Grünenthal and Swedish investor EQT have also been reported as bidders for Organon.
• Neither Sun Pharma nor Organon has confirmed any agreement as of Friday afternoon.
• An earlier $12 billion approach reported in early April drew a speculative label from Evercore ISI.
• Organon, spun off from Merck in 2021 with a focus on women’s health and biosimilars, was valued near $2.2 billion before the rally, making a $13 billion cash deal a large premium and Sun Pharma’s biggest purchase if completed.