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‘Debt Averse, Not Risk Averse’: Dilip Shanghvi on Sun Pharma’s shift to net debt for Organon dealAddressing concerns around Organon’s muted revenue growth in recent years, Managing Director Kirti Ganorkar said there are multiple levers to drive growth across its businesses.By Ekta Batra   |  Gareema Bangad  April 27, 2026, 1:39:11 PM IST (Published)3 Min ReadThe management of India’s largest drugmaker, Sun Pharmaceutical Industries Ltd., said it is comfortable taking on debt to fund its $11.75 billion acquisition of Organon & Co., with Executive Chairman Dilip Shanghvi emphasising that the company remains “debt averse” but “not risk averse.”

“As a company, we ourselves are debt averse. However, we are not risk averse,” Shanghvi said in a press conference, adding that the company is willing to use leverage when it helps scale the business and change its growth trajectory.

Sun Pharma on Monday, April 27, announced that it has signed a definitive agreement to acquire 100% of Organon’s outstanding equity at an enterprise value of $11.75 billion.

Organon shareholders will receive $14 per share in cash, a 24% premium to the stock’s last closing price. The transaction will be funded through a mix of internal cash and committed bank financing and is expected to close in early 2027, subject to regulatory and shareholder approvals.

The deal will move Sun Pharma from a net cash to a net debt position, with a post-acquisition debt-to-EBITDA ratio of around 2.3 times. Shanghvi said this level of leverage is manageable.

: Sun Pharma Dividend Update: What 6.6 lakh retail holders need to know after Organon deal

“It’s not a very high debt ratio, even though the amount of debt would be significant, but we should be able to repay the debt within a reasonable period of time,” Shanghvi said, adding that the company has historically maintained discipline in reducing debt.

The acquisition is aimed at strengthening Sun Pharma’s global presence and expanding its portfolio, particularly in women’s health and biosimilars. The company said the deal aligns with its strategy of growing its innovative medicines business while enabling entry into biosimilars as a top-10 global player.

Addressing concerns around Organon’s muted revenue growth in recent years, Managing Director Kirti Ganorkar said there are multiple levers to drive growth across its businesses. He pointed to opportunities in expanding the innovation portfolio through global licensing, scaling established brands through line extensions, and tapping long-term growth in biosimilars.

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Ganorkar said Organon’s established brands, which contribute a significant share of revenue, can be further expanded through new formulations and combinations, while biosimilars present a large opportunity with several products expected to go off-patent over the next decade.

On biosimilars, he pointed to a large long-term opportunity driven by upcoming patent expiries, noting that Sun Pharma can leverage its licensing and commercial capabilities to expand the segment further.

“It’s a good business. They are worldwide ranked seventh, and we, with our licensing and our ability of marketing, we can improve this further,” Ganorkar said.

Sun Pharma shares rose about 9% following the announcement, making it one of the top gainers on the Nifty. The stock has since pared some of its gains and is trading at ₹1,733.20 as of 12.49 pm, still nearly 7% above its previous closing.Continue ReadingTagsM&Ashare market todaySun PharmaSun Pharma Share Price