Shares of Sun Pharmaceutical Industries gained as much as 4.2% to their day’s high of Rs 1,688 on the NSE on Monday after the company announced the acquisition of Organon & Co. for an enterprise value of $11.75 billion, acquiring all outstanding shares of the overseas pharma company at $14 per share in cash.

The Economic Times was the first to report earlier this year that Mumbai-based Sun Pharma was closing in on the $12 billion acquisition of Organon, a debt-ridden US company specialising in women’s health that was spun off from MSD (Merck Sharp & Dohme) in 2021.

Sun Pharma’s acquisition of Organon

In an exchange filing released today, Sun Pharma said it has entered into a definitive agreement with Organon, which it called a global leader in women’s health with a portfolio spanning across 70 products and biosimilars commercialised across 140 countries, with US, Europe, China, Canada, and Brazil among its largest market. The US-based company has six manufacturing facilities across the European Union and emerging markets.

Sun Pharma plans to fund the acquisition through a combination of available cash resources and committed financing from banks. The transaction will be effected by a merger of Organon with a subsidiary of Sun Pharma, with Organon surviving the merger, it added. The said transaction is expected to close in early 2027, subject to customary conditions.

“The proposed acquisition of Organon is aligned with Sun Pharma’s strategy of growing its innovative medicines business. The combined company becomes a stronger player in established brands/branded generics business. The deal also enables Sun Pharma’s entry into biosimilars as a top-10 global player. Organon’s portfolio, global footprint and strong stakeholder relationships shall complement Sun Pharma’s existing strengths and enhance long‑term value creation,” Sun Pharma said.

After the completion of the acquisition of 100% stake, Sun Pharma will become one of the top 25 global pharmaceutical companies with combined revenue of $12.4 billion, a more innovative medicines focussed company with 27% revenue share, one of the top 3 companies in global women’s health category and the seventh largest global biosimilar player, the pharma giant said.
Also read | ET Exclusive | Sun Pharma set to acquire Organon for $12.5 bn, its biggest till date

What the management says

The transaction has been approved by the boards of both the companies, but is subject to customary closing conditions. Speaking about the acquisition, Sun Pharma Executive Chairman Dilip Shanghvi 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.”

This transaction is a logical next step in strengthening Sun Pharma’s global business, said the company’s managing director Kirti Ganorkar. “Together, we will become a partner of choice for acquiring and launching new products. Our immediate priorities will be business continuity, disciplined integration and responsible value creation. We see strong potential in leveraging Organon’s talent pool. In addition, there is a scope for synergies including significant revenue upside opportunities to be realized over the coming years,” Ganorkar added.

Organon’s Executive Chair Carrie Cox meanwhile said that the US-based company’s board determined that this all‑cash transaction offers compelling and immediate value to Organon stockholders. “We believe Sun Pharma is well positioned to support Organon’s businesses, employees and patients globally, and to further advance our commitment to delivering impactful medicines and solutions,” he added.

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Sun Pharma share price

Notably, Sun Pharma shares tumbled around 10% in one month amid buzz over the bulky acquisition. Organon inherited $9.5 billion of debt during the MSD spinoff and has been facing intense competitive pressure from global drugmakers as well generic suppliers in all three of its broad business segments–women’s health, biosimilars and the established products range, which includes cardiovascular drugs, respiratory and non-opioid pain, bone health and dermatology drugs.

The latest data show Organon reduced debt to $8 billion in calendar 2025. In comparison, Sun has about $3.2 billion (Rs 26,000 crore) of net cash on its balance sheet. The management has said it’s willing to utilise this to fund large acquisitions. In FY26, Sun Pharma clocked sales of Rs 52,000 crore, the US and India contributed almost an equal share of 31-33%. The rest is divided between other markets and active pharmaceutical ingredients (APIs).

Last year, Sun Pharma acquired Checkpoint Therapeutics for $355 million upfront, and the deal value reached $416 million. This gave Sun Pharma access to Unloxcyt, an anti-cancer drug. Sales from 11 of its innovative drugs grossed $1.21 billion in the US. Those include ophthalmology, hair loss, dermatology and anti-cancer drugs. Sun Pharma’s largest innovative drug in the US is Ilumya, for the treatment of plaque psoriasis, which saw sales of $681 million last year.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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The ongoing Iran war and its resulting energy crisis have significantly shifted global power dynamics, with Russia and China emerging as the main beneficiaries.

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Russia, a key player in the global energy market, capitalized on the situation by increasing its oil and gas exports, strengthening its influence over energy markets and geopolitics.

• Russia is a primary winner in the current global energy landscape, earning approximately $250 million per day from oil sales.
• Worldwide importers are actively seeking alternative oil sources to reduce reliance on the Middle East.
• China is also a major beneficiary, gaining significant commercial advantages in the Middle East.
• China’s access to diverse energy resources has strengthened its ability to withstand the energy crisis affecting Asia.

Meanwhile, China seized the opportunity to secure a more stable energy supply, investing heavily in Iranian oil and gas projects despite Western sanctions. This strategic move allows China to diversify its energy sources and reduce dependence on Western-dominated markets. Both nations’ actions reflect a broader shift toward multipolarity, as they expand their influence through energy diplomacy.

How does China benefit from the energy crisis?

• Commercial Advantage in the Middle East: The crisis has created opportunities for China to expand its commercial influence and relationships within the Middle East.
• Energy Security: China’s access to energy resources has allowed it to withstand the difficulties of the energy crisis affecting the rest of Asia, providing a level of stability compared to other importers.
• Strategic Positioning: The situation has improved China’s strategic outlay, enhancing its geopolitical standing as global importers seek alternatives to Middle Eastern oil.

Several nations are actively seeking to diversify their oil supplies away from the Middle East to enhance energy security and mitigate geopolitical risks. While the Middle East remains a dominant supplier for many, the following countries and regions are increasingly turning to alternative sources:

Major Importers Diversifying Away

• China: As the world’s largest oil importer, China has significantly increased its purchases from Russia (its top supplier), Brazil, and other non-Middle Eastern sources. It is also stockpiling heavily to reduce reliance on Middle Eastern supply chains
• India: India has dramatically shifted its imports toward Russia, which now supplies a large portion of its crude oil (reaching nearly 40% in some periods), reducing its dependence on traditional Middle Eastern suppliers like Iraq and Saudi Arabia
• South Korea: With about 70% of its oil coming from the Middle East, South Korea has announced plans to secure additional volumes from outside the region if supply disruptions persist, looking toward the Americas and Africa
• Japan: While still heavily reliant on the Middle East (95%), Japan is diversifying its LNG and oil sources, increasing imports from the United States, Australia, and West Africa to hedge against regional conflicts

Europe and the Americas

• European Union: Following the ban on Russian seaborne crude, European nations like Germany, France, and Italy have pivoted to suppliers in the United States, Norway, Azerbaijan, Kazakhstan, and West Africa (e.g., Nigeria, Libya)
• United States: The U.S. has largely reduced its reliance on Middle Eastern oil, sourcing most of its imports from Canada (over 60%), Mexico, and increasingly from South America (e.g., Brazil) and West Africa
• Netherlands & Germany: These nations are increasingly importing from the United States, Norway, and the United Kingdom to replace traditional suppliers

Key Alternative Sources

The primary non-Middle Eastern sources these nations are turning to include:

• Russia (though subject to sanctions in the West)
• Canada (primary for the U.S.)
• Brazil (growing share for Asia and Europe)
• Norway (key for Europe)
• United States (for Europe and Asia)
• Azerbaijan and Kazakhstan (for Europe and Asia)
• Nigeria, Angola, and Libya (for Europe and Asia)

Overall, the Iran war energy crisis has reshaped international relations, positioning Russia and China as the “big winners” by enhancing their energy security and geopolitical leverage. Their gains underscore the increasing importance of energy resources in global power competition, and may have long-lasting implications for global stability and economic growth.

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Shares of private lender Axis Bank tumbled 5% to their day’s low of Rs 1,300 on the NSE on Monday after it reported a standalone net profit of Rs 7,071 crore for the March quarter of FY26, compared with Rs 7,118 crore in the same period last year, reflecting a marginal decline of 0.64%.

Interest income for Q4FY26 rose 4.7% year-on-year to Rs 32,724 crore from Rs 31,243 crore in the corresponding quarter of the previous financial year. Interest expenses also increased 4.7% YoY to Rs 18,267 crore, against Rs 17,432 crore in Q4FY25.

Net Interest Income (NII) for Q4FY26 stood at Rs 14,457 crore, up 5% year-on-year, while Net Interest Margin (NIM) for the quarter came in at 3.62%.
Asset quality improved during the quarter, with Gross NPA and Net NPA at 1.23% and 0.37%, respectively, compared with 1.40% and 0.42% as on December 31, 2025. Recoveries from written-off accounts during the quarter stood at Rs 1,197 crore.

Axis Bank shares: Should you buy, sell or hold?

Motilal Oswal has maintained a Neutral rating on Axis Bank share price with a target price of Rs 1,475, indicating a potential upside of 8%. The brokerage said credit costs declined during the quarter, supported by easing stress in the unsecured portfolio. This also helped improve momentum in higher-yielding assets, along with lower interest reversals.

The bank continues to target medium-term loan growth of around 300 basis points above industry levels. Asset quality also improved sequentially, with both gross NPA and net NPA ratios declining. However, Motilal Oswal said the evolving West Asia situation remains an important near-term monitorable. It added that the bank has prudently created standard asset provisions to account for potential risks.
JM Financial has maintained its Buy rating on Axis Bank shares and raised the target price to Rs 1,575, implying a potential upside of 15.3%. The brokerage said Axis Bank’s valuation is supported by the continued strength of its deposit franchise, improving asset quality, and a more conservative balance sheet backed by incremental provisioning.It also highlighted sustained franchise gains in the SME and wholesale banking segments as key positives. While near-term pressure on net interest margins may keep return on assets improvement gradual, JM Financial believes better liability quality and lower normalised credit costs should support an earnings recovery going forward.

Elara Capital has maintained its Buy rating on Axis Bank stock price and revised its target price upward to Rs 1,629. The brokerage described the quarter as mixed, with strong asset quality trends but weaker core operating performance. It noted that asset quality continues to improve, supported by lower credit costs. It added that liability traction and deposit growth remain key monitorables going ahead. The brokerage said any re-rating in the stock will depend on consistency in performance and that its valuation is based on a SOTP methodology, rolled forward to FY28.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)