Takeover by Indian Company Could Improve Availability of Key Fertility Drug, Especially in India, Network CEO Speculates
BY LISA SCOTT
Sun Pharmaceutical Industries of India has signed a definitive agreement to acquire Organon & Co., a U.S.-based women’s health company that makes a central fertility medication, Follistim AQ.
The companies in late April announced an acquisition agreement in which Sun will buy all outstanding shares of Organon for $14 per share in an all-cash transaction valued at $11.75 billion. The transaction is expected to close in early 2027, subject to shareholder and regulatory approval. The current plan would merge Organon into a Sun Pharma subsidiary, with the Organon name continuing.
The deal has the potential to help address unmet desire for Follistim AQ, perhaps especially in India, said Vinesh Gadhia, CEO of Ferty9, a network of 11 fertility clinics in southern India. “Sun Pharma’s strength on the ground in India is enormous, and it has considerable manufacturing capacity,” Gadhia said.
Follistim AQ is one of two originator human follicle-stimulating hormone (r-hFSH) medications on the market, the second being Merck’s Gonal-F. Because of limited worldwide supply, many fertility clinics, especially internationally, use competing biosimilar products instead, Gadhia said. But if originators were more widely available, they often would be preferred due to superior fertility outcomes, he said.
Deal Will Strengthen Sun Pharma in Fertility Segment
The acquisition is “a win-win” for the companies, Gadhia said. “Sun Pharma has been trying to make their mark in fertility but has not had really good products, while Organon has one of the top products in the world but has struggled with debt.”
Organon had $8.6 billion in debt at the end of 2025, stemming from its 2021 spinoff from Merck, on revenue of $6.2 billion. The company also has experienced other challenges, including the resignation of its CEO last year following a controversy around sales of the long-term contraceptive Nexplanon, a 3% drop in annual sales and a 9% decline in its most recent quarter.
Meanwhile, Sun Pharma has had a strong cash position with minimal debt. It reported 11.3% sales growth in its recent nine-months report.
Resulting Company Will Be Among Top 3 in Global Women’s Health
Sun Pharma is the world’s leading specialty generics company and the largest pharmaceutical company in India. Sun Pharma primarily manufactures generics and branded generics but has made acquisitions to expand its proprietary products; its U.S. division includes several.
In addition to women’s health, Organon and Sun Pharma have alignments in biosimilars and innovative medicines. The acquisition also provides Sun Pharma a platform to further expand in the U.S.
Sun Pharma said the acquisition will place it among the top three companies in global women’s health and among the 25 largest global pharmaceutical companies, with a combined revenue of $12.4 billion.
The boards of both companies have approved the transaction.
In a news release, Sun Pharma Managing Director Kirti Ganorkar said Sun Pharma’s immediate priorities “will be business continuity, disciplined integration and responsible value creation.”