Sun Pharmaceutical Industries, led by billionaire founder Dilip Shanghvi, is advancing with a $12 billion binding offer for Organon & Co, a US-based company focused on women's health. This bid represents a significant move for Sun Pharma, aiming to establish itself as a leader in innovative drug development. The company has completed over three months of due diligence and is finalizing a financing package with support from major banks, including JPMorgan, MUFG, and Standard Chartered Bank. If successful, this acquisition would be the largest global merger and acquisition involving an Indian pharmaceutical firm.

Organon, which was spun off from Merck Sharp & Dohme (MSD) in 2021, has faced challenges, including a $9.5 billion debt load and competitive pressures in its market segments. Despite a decline in its stock value, Organon is looking to pivot its focus towards biopharmaceuticals and has engaged Morgan Stanley as its advisor for the sale process. Sun Pharma's strong cash reserves of $3.2 billion position it well for this acquisition, reflecting its strategy to enhance its portfolio of innovative drugs, which generated $1.21 billion in sales in the US last year.