Organon & Co. (OGN) shares surged 15.99% during the trading session, following the announcement of a definitive agreement to be acquired by Sun Pharmaceutical Industries.
The stock price movement was driven by news that Sun Pharma will acquire Organon in an all-cash transaction valued at approximately $11.75 billion. Under the terms of the agreement, Organon shareholders will receive $14.00 per share in cash, representing a significant premium to recent trading prices.
The acquisition is expected to enhance Sun Pharma's global footprint, particularly in women's health and biosimilars, while creating a combined entity with projected revenues of about $12.4 billion. The transaction has been approved by the boards of both companies and is anticipated to close in early 2027, subject to regulatory approvals and Organon stockholder consent.