Sun Pharmaceutical Industries share price
Shares of Sun Pharmaceutical Industries (Sun Pharma) hit a 52-week high of ₹1,885, gaining 2 per cent on the BSE in Monday’s intra-day trade in an otherwise weak market. In comparison, the BSE Sensex was down 1.1 per cent at 76,424 at 11:27 AM.
Since April 27, 2026, in the past 10 trading days, the stock price of Sun Pharma has appreciated by 16 per cent. Last week, it surpassed its previous high of ₹1,851.20 touched on May 2, 2025. The stock now quotes close to its all-time high of ₹1,960.20 touched on September 30, 2024.
In the past one month, Sun Pharma has outperformed the market by soaring 13 per cent, as against 1.6 per cent decline in the benchmark index.
Sun Pharma acquires Organon; rating agencies view
Sun Pharma on Monday, April 27, 2026 said it entered into a definitive agreement to acquire Organon in all-cash transaction deal at an enterprise value of $11.75 billion. Organon is a global healthcare company formed through a spinoff from Merck. Organon has six manufacturing facilities across the European Union and emerging markets.
In CY25, it reported revenue of $6.2 billion with adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) amounting to $1.9 billion with 30.6 per cent EBITDA margins. For CY25 established brands contributed 55 per cent of Organon revenue while Innovative medicines/ Women’s health contributed 33 per cent, Biosimilar – 11 per cent and others 1 per cent.
The transaction, when consummated will significantly bolster Sun Pharma’s global footprint, positioning it among the top 25 global pharmaceutical companies with pro-forma revenue of $12.4 billion. Strategically, the acquisition provides Sun Pharma with immediate leadership in Women’s Health and Biosimilars and expanded geographical outreach, while also strengthening its innovative medicine portfolio, Crisil Ratings said.
On a combined front, innovative medicines will account for 27 per cent of consolidated revenue, established brands and branded generics 51 per cent, biosimilars 6 per cent, generics 15 per cent, APIs and others 2 per cent on a pro-forma basis. The operating profitability or Ebitda margin is expected to continue at healthy levels of 29-30 per cent, translating to absolute operating profit of ~$4 billion, and healthy annual cash generation, the rating agency said in its rationale.
The proposed acquisition is expected to materially strengthen Sun Pharma’s global business profile by almost doubling its scale and expanding its geographical footprint and product mix, ICRA said.
As per the company, the acquisition is likely to result in potential cost synergies of around $350 million, to be realised over the medium term. These are expected to be driven by procurement efficiencies, optimisation of manufacturing footprint and rationalisation of overhead costs across corporate and commercial functions. However, the pace and extent of synergy realisation, along with associated integration costs, will continue to be monitored by ICRA, the rating agency said in rationale.
Brokerages see more upside in Sun Pharma’s stock price
Analysts at Choice Institutional Equities see Sun Pharma’s acquisition of Organon as a transformational deal, doubling revenue to $12 billion with 30 per cent EBITDA margin. It will not only enhance portfolio quality via biosimilars entry but also strengthen leadership in the women’s health segment and raise innovative products’ contribution to revenue to 26 per cent (from 20 per cent). It will also further also mark Sun Pharma’s expansion in China (world’s second-largest market) and reduce US dependence to 27 per cent (from 31 per cent). The brokerage firm expects full integration from FY27E onwards and value Sun Pharma on FY28E EPS at 25x, revising target price to ₹2,300 (from ₹1,825) and upgraded rating on the stock to ‘BUY’.
Analysts at Elara Securities also retained a ‘BUY’ rating on the stock with a target price of ₹1,968 per share. Any significant post-announcement dip presents a compelling buying opportunity for the stock. Sun Pharma will acquire all outstanding shares of Organon for $14 per share in an all-cash deal, implying an equity value of $4bn and an enterprise valuation of $11.8 billion. This transaction is slated to close in early CY27.
Strategically, the acquisition gives Sun Pharma entry into branded generics in women’s health and biosimilars – two areas where Sun Pharma is not present. These two areas face lower competition in fast-growing markets compared to the regular generics business in the regulated markets. Further, Sun Pharma’s penetration into select large markets, such as China and South Korea, improves, the brokerage firm said. ============================================= Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.
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