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Sun Pharma-Organon Deal: Analysts advice what to do with the stock after the newsWhile ICICI Securities cautioned that Sun Pharma's stock may remain range-bound in the near term, Elara Securities said any sharp decline post-announcement could present a buying opportunity.By Meghna Sen  April 27, 2026, 9:04:03 AM IST (Published)3 Min ReadShares of Sun Pharmaceutical Industries Ltd. will be in focus on Monday, April 27, after India's largest drugmaker announced a definitive agreement to acquire US-listed Organon in a deal aimed at long-term value creation and portfolio expansion.

Sun Pharma will acquire 100% of Organon's outstanding equity at an enterprise value of $11.75 billion.

Under the agreement, Organon shareholders will receive $14 per share in cash, representing a 24% premium to the stock's last closing price.

Interestingly, Organon shares have already rallied sharply, nearly doubling since April 8 when reports of the deal first surfaced, including a 30% surge in the last session.

Brokerage firm ICICI Securities said the acquisition is expected to strengthen Sun Pharma's revenue and profitability profile, while increasing the share of high-value branded and innovative products.

It also said that the deal enhances the company's global positioning, particularly in women's health, and reduces dependence on the US market.

The brokerage added that the deal has been struck at a slightly lower valuation than earlier estimates of around $13 billion. Sun Pharma is valuing Organon at 1.9x EV/sales and 6.2x EV/EBITDA on a CY25 basis, factoring in the company's higher exposure to rest-of-world markets, existing debt, and near-term patent expiries.

However, ICICI Securities cautioned that Sun Pharma's stock, which has been under pressure over the past five months, may remain range-bound in the near term following the acquisition.

Elara Securities maintained a 'Buy' rating, stating that any sharp decline in the stock post-announcement could present a buying opportunity.

It said that Organon, with revenue of $6.2 billion and EBITDA of $1.9 billion, offers Sun Pharma entry into women's health and biosimilars. While leverage will rise, debt is expected to remain manageable at around 2.3x EBITDA.

Elara also said the deal valuation of 6.2x EV/EBITDA appears reasonable, and expects Sun Pharma to drive operational efficiencies and unlock further value over time.

Speaking to CNBC-TV18, Kunal Dhamesha of Macquarie Capital said the Organon acquisition is a strategic fit for Sun Pharma, with valuations becoming more attractive.

Watch the full conversation here

He added that this is one of the largest pharma deals seen in recent years, and integrating such a large acquisition across multiple markets will be key to watch.

Dhamesha said that both companies have strong operating cash flows, which should support debt servicing, and expects Sun Pharma to return to a net debt-free position over the next 3-4 years.

He also said the share of innovative business could rise to around 27% of the combined entity's revenue.

Shares of Sun Pharma ended 3.7% lower on Friday at ₹1,618.5 and are down about 10% over the past month.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.Tagsshare market todaySun PharmaSun Pharma Share PriceSun PharmaceuticalSun Pharmaceutical Industries