Sun Pharma Secures Ratings Boost From Moody’s, S&P on $11.75-Billion Organon Acquisition Bid

New Delhi: Sun Pharmaceutical Industries has secured investment-grade ratings from Moody’s Ratings and S&P Global Ratings as India’s largest drugmaker moves ahead with its proposed $11.75-billion acquisition of US-based Organon & Co.

S&P assigned Sun Pharma a preliminary ‘BBB+’ long-term issuer credit rating, while Moody’s gave the company a ‘Baa1’ long-term issuer rating. Both rating agencies maintained a stable outlook.

The ratings indicate adequate capacity to meet financial obligations, with moderate credit risk.

Organon Deal Could Nearly Double Revenue

The rating actions follow Sun Pharma’s binding bid in April 2026 to acquire 100% of Organon at an enterprise value of $11.75 billion. The transaction is expected to close by March 2027, subject to regulatory approvals.

S&P expects the Organon acquisition to significantly strengthen Sun Pharma’s business profile and nearly double its revenue base.

The agency estimates Sun Pharma’s revenue could reach around Rs 1.3 trillion, or approximately $14 billion, by FY28, compared with an estimated Rs 645 billion, or around $7 billion, in FY27 excluding Organon.

Organon is expected to contribute around 40%-45% of the combined group’s EBITDA following the acquisition.

Women’s Health, Biosimilars Get Boost

Moody’s said the acquisition would strengthen Sun Pharma’s scale, geographical presence and growth platforms, particularly in women’s health and biosimilars.

Organon’s presence in markets such as China and Korea could also provide Sun Pharma with opportunities to cross-sell products in countries where its presence is currently limited, S&P said.

S&P added that the enlarged company’s operating scale would become comparable with global pharmaceutical companies such as Teva Pharmaceuticals and Viatris, which generate annual revenues of about $14 billion-$17 billion.

To fund the transaction, Sun Pharma has secured a $12-billion committed acquisition bridge loan from a syndicate of international banks, according to Moody’s.

The pharmaceutical major also held approximately $3.6 billion in cash as of March 31, 2026.