Shares of Sun Pharmaceutical Industries Ltd. surged as much as 5% to ₹1,704 in Monday’s trade after the company announced a major acquisition of US-listed Organon. The stock opened at ₹1,625 on Monday, compared with its previous close of ₹1,620 on Friday. 

In a regulatory filing, Sun Pharma said it has entered into a definitive agreement to acquire Organon in a deal aimed at driving sustained long-term value creation and leveraging complementary portfolios to strengthen its global business position. 

Sun Pharma will acquire 100% of Organon’s outstanding equity at an enterprise value of $11.75 billion, the company said. 

Dilip Shanghvi, Executive Chairman of Sun Pharma, said, “This transaction represents a significant opportunity for Sun Pharma to build on its vision of Reaching People and Touching Lives. Organon’s portfolio, capabilities and global reach are highly complementary to our own, and we believe that bringing the two organizations together can create a stronger and more diversified platform. We have deep respect for Organon’s mission and look forward to building on its legacy while driving sustainable long-term growth.” 

The acquisition is expected to strengthen Sun Pharma’s standing as a global pharmaceutical leader, with combined revenues of about $12.4 billion. The merged entity is projected to rank among the top 25 pharmaceutical companies globally and become a top three player in the women’s health segment worldwide. 

The transaction will also help Sun Pharma emerge among the top seven players in biosimilars, the fast-growing segment of reverse-engineered versions of patented biotech drugs. 

In another development, broader equity markets also traded higher on Monday, tracking gains in Asian peers amid hopes of easing geopolitical tensions in West Asia. 

At 9:33 am, the BSE Sensex was up 371.16 points, or 0.48%, at 77,035.37 while the NSE Nifty50 rose 127.05 points, or 0.53%, to 24,025.00. Broader markets outperformed benchmark indices, with the Nifty MidCap and Nifty SmallCap indices rising 1.16% and 1.05%, respectively. 

Among sectors, Nifty Realty and Nifty Pharma led the gains, while Nifty Private Bank and Nifty Financial Services underperformed. 

Shares were mixed in Asia, and Tokyo's Nikkei 225 index hit a fresh record Monday after US stocks ended last week with new highs.