Analysts see growth upside for India's Sun Pharma, flag higher leverage post Organon deal

Organon & Co.

28/04/2026 09:21

** Analysts say Sun Pharmaceutical Industries' SUN.NS $11.75 billion Organon OGN.N acquisition to drive scale, long-term growth, raise leverage, moderate valuations

** Sun Pharma buys U.S. drugmaker Organon in all-cash deal, marking largest overseas acquisition by Indian pharma co

** SUN up 1.08% to 1,752.2 rupees

** HDFC Securities ("buy"; PT: 2,030 rupees) says deal will provide scale, growth revival in established brands; expects sales/EBITDA/PAT accretive by 80%/82%/27% in FY28

** Sees co shifting from net cash to net debt position

** Emkay ("buy"; PT: 2,100 rupees) sees strong cross-selling, in-licensing opportunities from Organon's global footprint

** Adds deal gives Sun Pharma entry into biosimilars, access to long-term opportunities

** CLSA ("outperform"; PT: 1,732 rupees) expects co's valuation to ease, with forward price-to-earnings multiple easing to 20x-24x from ~30x pre-deal

** YTD, SUN up 0.8%

 (Reporting by Devika Nair in Bengaluru)

 ((Devika.MadhusudhananNair@thomsonreuters.com;))