1 hr ago
Sun Pharma Wins Investment-Grade Ratings for Organon Bid
Sun Pharma, a large Indian drug company, wants to buy Organon, a US-based drug company.
The proposed deal is worth $11.75 billion.
Two rating agencies, Moody’s and S&P, reviewed Sun Pharma because it plans to borrow money for the purchase.
Both agencies gave the company investment-grade ratings.
They also gave it stable outlooks, meaning they do not currently expect major changes in the rating.
The agencies believe the deal could nearly double Sun Pharma’s revenue.
Organon could add strength in women’s health and biosimilar medicines.
The deal still needs regulatory approval and is expected to close by March 2027.
Moody’s assigned Sun Pharma a Baa1 rating, while S&P assigned a preliminary BBB+ rating.
Both agencies gave Sun Pharma a stable outlook and cited adequate payment capacity with moderate credit risk.
Sun Pharma submitted a binding $11.75 billion bid for 100% of Organon in April 2026.
The acquisition is expected to close by March 2027, subject to regulatory approvals.
Organon is projected to contribute 40%-45% of combined EBITDA and expand Sun Pharma’s global reach.
- Who
- Sun Pharmaceutical Industries, Moody’s Ratings, S&P Global Ratings, and Organon & Co.
- What
- Sun Pharma received investment-grade ratings as it advances its proposed $11.75 billion acquisition of Organon.
- Where
- Sun Pharma is based in India, while Organon is based in the United States; the deal would expand Sun Pharma’s presence in markets including China and Korea.
- When
- The binding bid was submitted in April 2026, and the transaction is expected to close by March 2027, subject to approvals.
- Why
- The ratings followed Sun Pharma’s planned acquisition financing and reflect expectations that the deal will expand its scale, revenue, geographic reach, and growth platforms.
Key facts
- Proposed transaction
- Acquisition of 100% of Organon & Co. at an enterprise value of $11.75 billion
- S&P rating
- Preliminary BBB+ long-term issuer credit rating
- Moody’s rating
- Baa1 long-term issuer rating
- Outlook
- Stable from both rating agencies
- Expected closing
- By March 2027, subject to regulatory approvals
- Expected revenue
- About $14 billion, or Rs 1.3 trillion, by FY28 including Organon
- Financing
- $12 billion committed acquisition bridge loan; approximately $3.6 billion in cash as of March 31, 2026
Quotes
S&P Global Ratings
Credit-rating agency assessing Sun Pharma’s proposed Organon acquisition
“The acquisition will bolster Sun Pharmaceutical's business position... We estimate Sun Pharmaceutical's revenue will increase to about $1.3 trillion (about $14 billion) in fiscal 2028, from our estimate of $645 billion (about $7 billion) in fiscal 2027 (ex-Organon),”
thehindubusinessline.com
“The Organon acquisition will materially strengthen Sun's scale, geographic reach and growth platforms in women's health and biosimilars”
thehindubusinessline.com
Sources
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