sun pharmas acquisition of organon (short analysis)

(biggest acquisition in the history of India )

sun pharma is the biggest pharmaceutical company of India , we can’t talk about the pharma sector without mentioning sun pharma , it supplies 20% of world’s medicines and in that 20% ,60% vaccines are of sun pharma . mostly they make generic drugs but they have r&d sector too and API sector too . they are leading in world supply of women reproductive health products such as contraceptive , they are basically one of the biggest company world wide but the question is if they were so great already why did they bought organon ?, it’s not any small pharma company it’s annual revenue was same as of sun pharma , they were a big shot like sun pharma but in the us market mostly . so , to understand why sun pharma bought organon one needs to understand a little bit of equity research analysis topic which is buisness life cycle diagram below .

business life cycle diagram

so see the decline phase , that’s where sun pharma was before buying organon , they had reached the maturity phase and with their current generic drugs they couldn’t have expanded in US because they needed innovation and new consumer market and if they hadn’t expended they would’ve collapsed so that’s why they bought organon because they are a big pharma company in US with a innovative sector and with this sun pharma has become a global giant .

this was India’s biggest acquisition of any company . and it seems to work and sun pharma is going to be the world leader of pharma it seems .

pharma #sun pharma #organon #pharmaceuticals