Sun Pharmaceutical Industries, India’s largest pharmaceutical company by revenue, is reportedly considering a transformative acquisition of Organon & Co. in a deal that could be valued at approximately $10 billion. The development, first reported in financial circles in mid-January 2026, would mark one of the most significant outbound transactions ever undertaken by an Indian pharmaceutical firm and dramatically expand Sun’s presence in the U.S. market the world’s largest and most profitable pharmaceutical market.

Organon, which Merck spun off in 2021 to focus on women’s health, biosimilars, and established brands, offers a complementary fit for Sun Pharma. The company generates the majority of its revenue in the U.S. through products such as Nexplanon (contraceptive implant), NuvaRing, and a growing portfolio of biosimilars. It also maintains a robust commercial infrastructure, including a large U.S. sales force and established payer relationships assets that Sun currently lacks at comparable scale despite its strong generics and specialty presence.

Analysts believe the transaction would allow Sun to leapfrog several years of organic build-out in the U.S. specialty and branded space. Sun’s current U.S. operations are primarily focused on generics and authorised generics, while Organon brings differentiated, patent-protected brands and a foothold in high-margin therapeutic areas such as women’s health and hormone therapies.

The potential deal comes at a time when Indian pharmaceutical companies are increasingly looking abroad for growth as domestic pricing pressures and regulatory complexities persist. Sun Pharma, under the leadership of Chairman Dilip Shanghvi, has a history of disciplined global acquisitions (notably Ranbaxy in 2014 and several later bolt-on deals) and maintains one of the strongest balance sheets in the industry, with net debt levels that would comfortably support a transaction of this size.

While no formal offer has been submitted and discussions remain preliminary, people familiar with the matter indicate that Sun has initiated due diligence and is evaluating financing options, including a mix of cash, debt, and potentially equity components. Organon’s board and management are understood to be open to strategic alternatives that could unlock shareholder value, especially given the company’s relatively modest valuation multiples compared to peers in the women’s health and specialty space.

If completed, the acquisition would significantly elevate Sun Pharma’s global branded revenue mix, reduce dependence on commoditised generics, and provide a stronger platform for future specialty launches and biosimilar expansion in the U.S. and other developed markets.

The deal would also underscore India’s growing role as a source of outbound pharmaceutical M&A, following a string of large domestic consolidations and smaller international tuck-ins by Indian companies in recent years.