Sun Pharma. Inds.

By Khushi Malhotra and Dharamraj Dhutia

MUMBAI, Sept 29 (Reuters) - India's Sun Pharmaceutical Industries SUN.NS is planning to raise around 100 billion rupees ($1.04 billion) via a rupee-denominated debt sale to partly fund a bridge loan it took to acquire US healthcare firm Organon & Co., three sources said on Tuesday.

Bridge loans are typically short-term loans taken before acquisitions to provide financing for the deal, which can later be replaced with more permanent funding via bonds or loans.

The country's largest drugmaker by market capitalisation closed a syndication of a near-$12 billion, 18-month bridge loan earlier this year for Organon's acquisition. The syndication also included State Bank of India, the country's largest lender by assets, the sources said.

The sources requested anonymity as they are not authorised to speak to media. Sun Pharma did not immediately respond to a Reuters email seeking comment.

Bankers expect total domestic corporate debt issuances this year to hit a record as higher US yields make dollar funding costlier, pushing companies to explore funding within the domestic market, one of the sources said.

The 10-year US yield is hovering at its highest level since mid-June 2007, which has put pressure on global borrowing costs.

Sun Pharma will sell shorter-duration bonds with maturities of two, three and four years, the sources said.

The move comes as Indian companies have been trying to lock in borrowing costs ahead of a potential rate hike by the Reserve Bank of India, with about $3 billion worth of rupee debt issuances lined up over the next few days.

($1 = 95.9700 Indian rupees)

(Reporting by Khushi Malhotra and Dharamraj Dhutia; Editing by Janane Venkatraman)

(([email protected]))

Sun Pharmaceutical Industries signed an exclusive agreement with LIB Therapeutics to commercialize and manufacture lerodalcibep worldwide excluding the United States and China. The once-monthly PCSK9 inhibitor for lowering LDL cholesterol received European Union approval on 21 September 2026 as Lyrokaul with six-month ambient storage, and was approved in the United States as Lerochol. The agreement provided for an upfront payment with future milestones and royalties on net sales, with Sun taking responsibility for regulatory approvals in licensed territories where approval was pending. The PCSK9 market outside the United States and China was $3.7 billion in the year to the second quarter of 2026, growing at 38% annually, with Europe accounting for $2.9 billion. Sun's innovative medicines accounted for about 22% of Rs582 billion FY26 sales at $1,420 million led by Ilumya, and the company operated 40 manufacturing sites with more than 400 active ingredients.

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An alert on LIB Therapeutics announcing a licensing agreement with Sun Pharma SUN.NS was inadvertently tagged to Sun Pharma Advanced Research SPRC.NS, an unrelated company, and has been withdrawn.

For the correctly coded alerts on Sun Pharma, click here.

STORY_NUMBER: nFWN45K0BP

STORY_DATE: 28/09/2026

STORY_TIME: 12:00 PM GMT

The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Shritama Bose

MUMBAI, Sept 21 (Reuters Breakingviews) - A boardroom battle at the $260 billion Tata group is turning into a test of institutional credibility for India. Multiple official bodies are driving Tata Sons, the conglomerate's holding firm, toward a public offering of its shares, a move strongly opposed by its majority shareholders. The drama harks back to the 1970s when an official diktat to increase local ownership led to Coca-Cola's KO.N exit from the country. The latest struggle may redraw the boundaries for private enterprise in India.

Tata Sons' board led by N. Chandrasekaran favours a listing. But charities collectively known as Tata Trusts, owners of 65% of the private holding company, argue that going public would dilute the group's philanthropic focus. Trusts Chair Noel Tata on Thursday said that its commitments in sectors like electronics manufacturing and civil aviation require "patience measured in decades rather than in quarters".

Like other conglomerates, the 158-year-old Tata group has long aligned itself with New Delhi's policy goals. What's different under Chandra's leadership is a commitment to so many capital-intensive, long-gestation projects at once. It privatised Air India in 2022 and struck out into iPhone assembly and government subsidy-backed semiconductors, going so far as to promise a chipmaking facility in the geographically tricky north-east of India. Tata Power TTPW.NS is targeting a 2032 launch for its first nuclear plant as India tries to cut dependence on energy imports.

Although the Trusts signed off on these decisions, this huge commitment to national development appears to have emboldened officials to try to stake a claim in the group's corporate structure. One motivation may be to avoid a credit default at engineering and construction conglomerate Shapoorji Pallonji group, whose ability to honour its estimated 600 billion rupees ($6.26 billion) borrowings depends partly on its ability to monetise its 18.4% stake in the unlisted Tata Sons.

Take the Reserve Bank of India. The regulator introduced rules in 2022 mandating large companies registered as core investment companies, a category of non-bank lenders, to go public within three years. The following year Shanghvi Finance, a firm backed by Sun Pharmaceuticals SUN.NS founder Dilip Shanghvi, applied successfully to remove itself from that category. Tata Sons tried the same route, but the RBI on September 11 rejected its request, baffling much of the financial community.

The conduct of India's courts is also under scrutiny after Maharashtra state's quasi-judicial regulator for charities barred trustees at Sir Ratan Tata Trust, one of Tata Sons' main shareholders, from holding meetings while it determines the legality of the Trust's current board composition. This complicates the Trusts' ability to block Tata Sons' move last week to re-appoint Chandra for a fresh five-year term, which the Trusts have called "illegal".

The boardroom coup tramples the idea of shareholder supremacy, a view reiterated in unusually scathing terms on Friday by India's top proxy advisory firm IiAS. It all adds to an impression of the Indian state bearing down with full force to call the shots at a private company. Whether or not that is the case, the widespread perception is highly damaging. Unlike Coca-Cola, the Tatas can't quit India. But proof of creeping nationalisation would ring an alarm for those who can.

Follow Shritama Bose on LinkedIn and X.

CONTEXT NEWS

Tata Trusts Chair Noel Tata on September 17 said the Tata conglomerate must explore all options to avoid a listing of its holding company Tata Sons.

"If Tata Sons is publicly listed, the rights of Tata Trusts as majority shareholders stand to be seriously impaired," he said at a Tata Sons board meeting, according to a statement from the Trusts which own 65% of Tata Sons.

Noel asked the board to engage with the Reserve Bank of India and seek a period of at least three years up to September 2029 to comply with a regulatory mandate to go public. He said it would take time to recast Tata Sons' articles of association and secure related shareholder approvals.

The RBI on September 11 turned down Tata Sons' request to deregister as a non-bank lender, making it mandatory for the company to go public and comply with the central bank's rules for large shadow lenders.

The regulator also took the unusual move of pre-emptively approaching the Bombay High Court, seeking ​to be heard in any case filed related to the listing of Tata Sons, Reuters reported on September 15, citing an unnamed source directly familiar with the matter.

Tata Sons on September 17 reappointed N. Chandrasekaran as executive chair for five years and said it would initiate steps to comply with the RBI's order. It reversed Chandrasekaran's decision on August 12 to not seek reappointment citing the absence of the board's unanimous support. Tata Trusts, which oppose a listing, dismissed the re-appointment as "illegal".

(Editing by Una Galani; Production by Ujjaini Dutta)

((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))

Sept 11 (Reuters) - Sun Pharmaceutical Industries Ltd SUN.NS:

• SUN PHARMA - EXECUTION OF SETTLEMENT AGREEMENT WITH A PLAINTIFF IN THE IN RE GENERIC PHARMACEUTICALS PRICING ANTITRUST LITIGATION

• SUN PHARMA - SETTLEMENT AGREEMENT SIGNED FOR CONFIDENTIAL AMOUNT IN PENNSYLVANIA

• SUN PHARMA - SETTLEMENT AGREEMENT IS ENTERED INTO WITHOUT ADMISSION OF ANY WRONGDOING IN THE ACTION

Source text: ID:nnAZN4TJRU3

Further company coverage: SUN.NS

(([email protected];))

Sept 8 (Reuters) -

• S&P: SUN PHARMACEUTICAL INDUSTRIES ASSIGNED PRELIMINARY 'BBB+' RATING WITH STABLE OUTLOOK

Further company coverage: SUN.NS

(([email protected];;))

Sun Pharma joined a White House signing ceremony and agreed to extend Most Favored Nation pricing to U.S. state Medicaid programmes and to apply MFN pricing to future innovative-medicine launches. The agreement delayed Section 232 tariffs on innovative pharmaceutical products for more than two years, while other terms remained confidential. The United States accounted for about 27% of Sun Pharma’s global revenue and was its largest market for innovative medicines. Innovative medicines represented about 22% of company sales, and Sun Pharma had agreed to acquire Organon & Co. for an enterprise value of $11.75 billion.

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Adds details on Teva negotiation in paragraph 3, context, paragraph 5, Public Citizen comment, paragraphs 11 and 13

By Steve Holland and Michael Erman

WASHINGTON, Aug 31 (Reuters) - U.S. President Donald Trump announced a new round of drug-pricing agreements with international pharmaceutical companies and some smaller biotechs on Monday, part of a push to make healthcare more affordable for Americans.

Deals were signed with companies including Astellas 4503.T, BeOne Medicines 688235.SS, CSL CSL.AX, BridgeBio BBIO.O, Sun Pharmaceutical SUN.NS, and UCB SA UCB.BR, Trump said in an Oval Office event with executives of the companies.

Israel's Teva TEVA.TA, which also attended the event, said in a press release it was still in discussions with the administration on a potential agreement.

These companies have offered drugs to state Medicaid programs at most-favored-nation prices, Trump said, describing this as "a tremendous discount, which should bring down the cost of your medical care by tremendous amounts."

It is not clear how many drugs the deals cover or at what discounts, leaving the savings for the government or patients unknown. The White House did not release details of the agreements and companies in separate press releases described some terms as private. The administration and some of the companies said there would also be future savings on innovative drugs, and agreements to manufacture more products in the U.S.

ADDS TO EARLIER DEALS

U.S. consumers currently pay by far the most for prescription medicines, often nearly three times more than in other developed nations, and Trump has been pressuring drugmakers to lower their prices to what patients pay elsewhere.

The deals follow those the administration struck with 17 of the world's largest drugmakers, including Pfizer PFE.N, Eli Lilly LLY.N, and Novo Nordisk NOVOb.CO starting last year.

Those companies agreed to cut some prices for federal health programs and sell some medicines directly to patients through a Trump-branded website, in return for tariff relief. It was not clear if there were any TrumpRx arrangements with the smaller companies.

The biggest savings from the earlier deals have come from weight-loss drugs. Novo and Lilly agreed to price cuts in return for their medicines being made more available through the Medicare program.

Centers for Medicare & Medicaid Services Administrator Mehmet Oz on Monday said 600,000 seniors had sought prescriptions through a new temporary pilot, which began July 1.

Beyond weight-loss drugs, critics like consumer watchdog Public Citizen have been skeptical about how much price relief Americans are really receiving from the White House agreements.

Medicaid already gets steep discounts from drugmakers under existing law, and most people covered by the program pay little out of pocket for prescriptions.

"The new deals are a distraction from the administration's failed plan to lower U.S. drug prices to the levels paid in other wealthy countries," said Peter Maybarduk, Access to Medicines director for the consumer advocacy group, in a statement.

SMALL DRUGMAKERS SLOW TO SIGN ON

Smaller and mid-sized drugmakers had been slow to sign onto drug-pricing deals, Reuters has reported.

A Reuters report in June found that only Japan's Astellas 4503.T had confirmed applying for the Medicaid pricing program by that point, with executives at companies such as Ionis Pharmaceuticals IONS.O saying they saw little financial benefit in joining.

The White House has held several high-profile events with pharmaceutical executives this year to promote its efforts on healthcare costs, part of a broader push to highlight affordability before this year's midterm elections that will decide control of Congress.

The administration has said its broader drug pricing push, including the earlier deals with large pharmaceutical companies, could save $64.3 billion in federal and state spending over the next decade, but that number is speculative.

(Additional reporting by Kamal Choudhury and Sriparna Roy in Bengaluru and Yasmeen Abutaleb in Washington; Editing by Caroline Humer and Bill Berkrot)

(([email protected];))

Sun Pharmaceutical Industries won a favourable ruling in the US Court of Appeals for the Third Circuit, which affirmed summary judgment in favour of the company and certain subsidiaries in antitrust litigation over a 2008 Pfizer settlement concerning generic Lipitor. The appellate court also upheld the denial of class certification for the plaintiffs. The decision brought the case substantially to a close, subject to any further remedies available under applicable law. Sun reported FY26 sales of ₹582.2bn and net cash of US$3.4bn at the end of the June 2026 quarter.

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Aug 17 (Reuters) - Sun Pharmaceutical Industries Ltd SUN.NS:

• SUN PHARMA - U.S. COURT AFFIRMS SUMMARY JUDGMENT IN FAVOR OF SUN PHARMACEUTICAL IN LIPITOR ANTITRUST LITIGATION

• SUN PHARMA - APPELLATE COURT AFFIRMS DENIAL OF CLASS CERTIFICATION FOR PLAINTIFFS IN LIPITOR CASE

Source text: ID:nBSE14f8sD

Further company coverage: SUN.NS

(([email protected];))

Adds sector context throughout, analyst comments in paragraphs 5-6

By Kashish Tandon

July 31 (Reuters) - India's Sun Pharmaceutical Industries reported a 27% rise in first-quarter profit on Friday, driven by robust growth in its high-margin specialty medicines business as the country's largest drugmaker continues to pivot beyond traditional generic drugs.

The results reflect Sun Pharma's push to expand its specialty medicines business, helping offset persistent pricing pressure in the U.S. generics market.

That portfolio, commanding higher margins, includes treatments for skin disorders, cancer and other chronic diseases.

Specialty sales rose 12.8% to $351 million, accounting for 21.9% of total revenue. Growth was driven by a 16% rise in India, its biggest market, while U.S. sales were broadly flat.

"Sun's India business has been the major growth driver this quarter, with growth driven by new launches in the specialty segment," said Vishal Manchanda, a pharma analyst with Systematix Institutional Equities.

"Sun is one of the companies in India which is the first to bring a new product to the market and that gives them an edge in setting the pricing as well," Manchanda said.

Sun has also been expanding overseas through acquisitions, including its planned $11.75 billion purchase of Organon OGN.N, which would be the largest cross-border deal by an Indian drugmaker.

Consolidated net profit rose to 28.95 billion rupees ($303.5 million) in the quarter ended June 30 from 22.79 billion rupees a year earlier, while revenue increased 10.5% to 153 billion rupees. Analysts had expected a profit of 29.90 billion rupees, according to LSEG data.

The company took a one-time charge of 2 billion rupees during the quarter related to the Organon acquisition.

Like its peers, Sun Pharma is also targeting India's fast-growing obesity and diabetes market with generic versions of semaglutide, the active ingredient in Novo Nordisk's NOVOb.CO blockbuster drugs Wegovy and Ozempic.

($1 = 95.3750 Indian rupees)

(Reporting by Kashish Tandon in Bengaluru; Editing by Subhranshu Sahu and Niveidta Bhattacharjee)

(([email protected]; 8800437922;))

July 29 (Reuters) - Sun Pharmaceutical Industries Ltd SUN.NS:

• SUN PHARMA - PHARMA RECEIVES ANVISA APPROVAL TO MANUFACTURE AND MARKET SEMAGLUTIDE IN BRAZIL

• SUN PHARMA - PHARMA TO LAUNCH SEMAGLUTIDE IN BRAZIL WITH HYPERA PHARMA

• SUN PHARMA - SEMAGLUTIDE TO BE AVAILABLE IN 2 MG/1.5 ML AND 4 MG/3 ML STRENGTHS

Source text: ID:nNSE6hJ79b

Further company coverage: SUN.NS

(([email protected];))

By Nqobile Dludla

JOHANNESBURG, July 21 (Reuters) - South Africa's health regulator is reviewing 12 applications for generic versions of semaglutide, the active ingredient in Novo Nordisk's NOVOb.CO blockbuster diabetes and weight-loss medicines, it said on Tuesday.

Novo's patent on semaglutide — used in diabetes drug Ozempic and weight-loss treatment Wegovy — expired this year in South Africa, paving the way for drugmakers to flood the market.

The South African Health Products Regulatory Authority (SAHPRA) said in response to a Reuters query that it has 12 generic semaglutide applications under review but did not provide the names of the applicants or the timelines for potential approval.

Last week, India's Sun Pharmaceutical Industries SUN.NS became the first company to receive approval from SAHPRA to manufacture and sell a generic version in South Africa.

The approval of more generic applications could lead to lower-cost alternatives in South Africa and intensify competition in the fast-growing GLP-1 market dominated by Novo and U.S. rival Eli Lilly LLY.N.

Like elsewhere in the world, the companies already ⁠face ​growing competition from compounded versions of the medicines. In South Africa, regulators ​have been stepping up efforts to monitor and regulate the compounded-drug market amid strong ​demand for lower-cost treatments.

Novo's response to the growing competition is the planned launch this month of a more affordable authorised copy of Ozempic in South Africa, through a partnership with healthcare company Acino aimed at expanding patient access. It has also cut the prices of Wegovy to make it more accessible.

(Reporting by Nqobile Dludla;
Editing by Alison Williams)

(([email protected]; +27103461066;))

July 17 (Reuters) - Danish drugmaker Novo Nordisk NOVOb.CO said on Friday that India's drug regulator has approved its obesity drug Wegovy for the treatment of metabolic dysfunction-associated steatohepatitis (MASH), a serious form of fatty liver disease.

Here are a few details:

• The Central Drugs Standard Control Organisation approved Wegovy's 2.4 mg semaglutide injection for the treatment of MASH, Novo Nordisk said.

• MASH is caused by a buildup of fat in the liver that can lead to inflammation and liver damage. The condition is part of a broader spectrum of fatty liver disease and can progress to more severe liver complications if left untreated.

• Novo Nordisk said about two in three people in India have fatty liver disease, highlighting the country's large potential patient population.

• It is a silent disease, and people often do not have symptoms until the disease has progressed to an advanced stage, the company added.

• Wegovy, Novo Nordisk's blockbuster obesity medicine, contains the active ingredient semaglutide and is already approved in multiple markets, including India, for chronic weight management.

• Novo has been vying for a share of India's fast-growing obesity-drug market against Eli Lilly's LLY.N Mounjaro and lower-cost generic semaglutide products launched by local drugmakers such as Dr Reddy's REDY.NS and Sun Pharma SUN.NS.

• The company sold about 76,000 units of Wegovy in India in the first six months of 2026, according to data from market researcher Pharmarack.

(Reporting by Rishika Sadam in Hyderabad; Editing by Sherry Jacob-Phillips)

(([email protected];))

July 15 (Reuters) - Sun Pharmaceutical Industries Ltd SUN.NS:

• SUN PHARMA - PHARMA RECEIVES SAHPRA APPROVAL TO MANUFACTURE AND MARKET GENERIC SEMAGLUTIDE IN SOUTH AFRICA

Source text: ID:nBSE9KDTCd

Further company coverage: SUN.NS

(([email protected];))

Updates at close

By Kashish Tandon

July 10 (Reuters) - Dr Reddy's Laboratories REDY.NS logged its steepest weekly loss in three years on Friday, after a disruption in generic semaglutide supply raised concerns it could lose its edge in the highly competitive diabetes market.

On Thursday, the company said supplies of ‌its generic semaglutide would remain unavailable in India and face disruptions in Canada until at least late October, after an impurity issue in the drug's active ingredient halted production of new batches.

At least five brokerages cut their price targets on the Indian drugmaker's stock since the announcement, according to data compiled by LSEG, and at least three lowered earnings estimates. Analysts warned that the disruption could weaken pricing power, dent market-share gains and slow earnings growth.

Dr Reddy's stock slid as much as 3.7% before trimming losses to settle 1.8% lower at 1,246.50 rupees. It fell 9.3% on the week, making it the benchmark Nifty 50's second-worst performer.

BofA analysts said the timing of supply resumption would be critical, warning the setback could prevent Dr Reddy's from capturing high-value volumes during a limited-competition period in Canada.

Approvals in key emerging markets such as Brazil and Turkey, along with post-resumption demand trends, would be closely watched, they added.

Systematix said the disruption could erode Dr Reddy's first-mover advantage in the semaglutide segment, with competition intensifying in India, home to the world's second-largest diabetic population, as well as in overseas markets.

"I think the first-mover advantage looks like it is no more," said Shrikant Akolkar, pharma analyst at Nuvama Institutional Equities.

"I think it is a win for other companies who are left in the market. If these companies have a clear product, this temporary withdrawal by Dr Reddy's will benefit them."

The Hyderabad-based drugmaker markets semaglutide under the brand name Obeda.

Rivals Zydus Lifesciences ZYDU.NS and Sun Pharmaceutical Industries SUN.NS have also launched competing versions.

(Reporting by Kashish Tandon in Bengaluru; Editing by Abinaya V and Janane Venkatraman)

(([email protected]; 8800437922;))

June 20 (Reuters) - Sun Pharmaceutical Industries SUN.NS on Saturday said it will acquire 100% of Innovcare Lifesciences in a deal valued at about 2.71 billion rupees ($28.73 million).

($1 = 94.3200 Indian rupees)

(Reporting by Devika Nair in Bengaluru; Editing by Alexandra Hudson)

(([email protected];))

June 10 (Reuters) - Organon OGN.N said on Wednesday the U.S. Food and Drug Administration has approved the expanded use of its arthritis drug, a biosimilar to Roche's ROPC.S Actemra, to treat a life‑threatening immune reaction in some cancer patients and COVID-19 in patients needing breathing support.

Here are a few details:

• The FDA approval expands use of its biosimilar, Tofidence, to treat severe or life‑threatening cytokine release syndrome in some cancer patients and for COVID‑19 patients who are receiving oxygen or breathing support and systemic corticosteroids.

• In cytokine release syndrome, the body releases excessive inflammatory proteins.

• Organon said Tofidence can now be used in adults and children aged two years and older for both conditions.

• The drug is a biosimilar, meaning it is a close copy of Roche’s Actemra used to treat types of arthritis, for which Tofidence is also approved.

• "In the U.S., biosimilar adoption may help reduce the affordability burden of high-cost brand biologics on the health care system," said Jon Martin, U.S. commercial lead, biosimilars and established brands, at Organon.

• Organon said Tofidence was approved by the FDA in 2023 as the first U.S. biosimilar to Actemra.

• In April, India's Sun Pharmaceutical Industries SUN.NS said it will buy Organon in an all-cash deal valued at about $11.75 billion including debt, in the largest overseas acquisition by an Indian pharmaceutical company.

(Reporting by Sahil Pandey in Bengaluru; Editing by Sahal Muhammed)

(([email protected];))

-- Source link: https://tinyurl.com/34y7ayaj

-- Note: Reuters has not verified this story and does not vouch for its accuracy

(([email protected]))

May 26 (Reuters) - Sun Pharmaceutical Industries Ltd SUN.NS:

• SUN PHARMA - TO PRESENT LONG-TERM FOLLOW-UP DATA ON UNLOXCYT

• SUN PHARMA - NEARLY 27% OF PATIENTS EXPERIENCED A COMPLETE RESPONSE

• SUN PHARMA - ONLY 1 PATIENT EXPERIENCED A GRADE >3 IMMUNE-RELATED ADVERSE EVENT

Source text: ID:nBSE6Jx299

Further company coverage: SUN.NS

(([email protected];))

May 22 (Reuters) - India's top drugmaker by revenue Sun Pharmaceutical Industries SUN.NS beat quarterly profit estimates on Friday helped by demand for company's high-margin specialty drugs used to treat complex conditions.

The Mumbai-based firm's consolidated net profit stood at 27.14 billion rupees ($283 million) for the quarter ended March 31, from 21.50 billion rupees last year.

That was above analysts' average estimate of 27.12 billion rupees, according to data compiled by LSEG.

($1 = 95.9125 Indian rupees)

(Reporting by Rishika Sadam and Kashish Tandon)

(([email protected];))

The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Shritama Bose

MUMBAI, May 8 (Reuters Breakingviews) - India Inc's global M&A push is coming at an inopportune time for its government. Sun Pharmaceutical Industries SUN.NS last week agreed to buy U.S.-based Organon OGN.N for $11.8 billion, months after Tata Motors' TATM.NS $4.4 billion deal to acquire Iveco's IVG.MI trucks unit. A quest for new markets and technology promises more outbound approaches. That may eventually hand New Delhi reasons to feel displeased.

Cross-border acquisitions by Indian groups are on the rise. In 2025, large-ticket transactions like Tata Motors' Iveco purchase and IT firm Coforge's COFO.NS $2.4 billion acquisition of U.S.-based Encora contributed to a $26 billion splurge on overseas assets, the most active year by volume since 2010, per Dialogic.

It's sensible for Indian companies sitting on a large cash balance to deploy it in markets where valuation multiples are lower, rather than to acquire richly valued local peers. Sun Pharma trades at 33 times forward earnings and is paying just 4 times that metric for similarly sized Organon; smaller Indian rivals like Torrent Pharma TORP.NS and Divi's Laboratories DIVI.NS trade at much higher multiples.

Access to richer markets in Asia, Europe and the U.S. is also a big draw, as is technological know-how. Tata Motors' TAMO.NS 2008 buyout of Jaguar Land Rover helped build its local range of electric cars. The incentive to buy tech firms is especially high as India's own investment in R&D, at 0.7% of GDP, lags the global average of 2%.

Interest in external assets will intensify as advances in artificial intelligence force groups from outsourcers to drugmakers to level up. Manufacturers investing in areas like defence, vehicle components and consumer electronics will look to bridge India's capability gap with the rest of the world.

New Delhi has so far been sanguine about the trend, seeing it as a sign of India Inc's growing clout on the global stage. That could change as outbound fund flows add to rising pressures on external balances. With a surging energy import bill and fund outflows, India could be staring at a third straight financial year of a negative balance of payments in the 12 months to the end of March 2027.

Part of the cash being splurged overseas stems from a 2019 decision to sharply cut the corporate tax rate; officials hoped that would encourage firms to invest more locally to stimulate growth and employment. While private spending is showing signs of life, its contribution to GDP is below historical levels.

In time, New Delhi may find those dimensions of India Inc's overseas shopping spree unpalatable and act against them. Until then, there's little reason for companies to stop gazing outwards.

Follow Shritama Bose on LinkedIn and X.

CONTEXT NEWS

Sun Pharmaceutical Industries on April 27 said it will buy ​U.S. drugmaker Organon in an all-cash deal valuing the target at about $11.75 billion including debt, making it ‌the largest overseas acquisition by an Indian pharmaceutical company.

Indian IT services provider Coforge said on December 26 it would acquire artificial intelligence firm Encora at an enterprise value of $2.35 billion to boost its in-house artificial intelligence capabilities and expand its presence in the U.S. and Latin America.

(Editing by Antony Currie; Production by Ujjaini Dutta)

((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))

India File is published every Tuesday. Think your friend or colleague should know about us? Forward this newsletter to them. They can also subscribe here https://www.reuters.com/newsletters/.

By Ira Dugal

May 5 - Sun Pharmaceutical's mammoth all-cash bid for U.S. drugmaker Organon & Co last week is yet another instance of Indian companies making bolder bets overseas, backed by the strength of their balance sheets.

But history shows that returns from these cross‑border deals are not always assured. With global M&A now becoming a strategic necessity rather than just offering bragging rights, is that likely to change? Write to me with your views on Indian companies' growing global ambitions at [email protected].

And, two executives are in the running for the post of Air India CEO. Scroll down for more on that.

THIS WEEK IN ASIA

• While Asia and Europe scramble for natural gas, the US glut has nowhere to go

• China's central bank guides banks to step up lending in April, sources say

• Investors are running out of time to brace for true oil shock

• One of Iran’s most powerful families founded its largest crypto exchange. It’s used by the IRGC to move millions

NOT JUST AMBITION, BUT A STRATEGIC NEED

From pharmaceuticals to IT, Indian firms across sectors are looking overseas in search of newer markets, products and technologies for their next burst of growth.

Sun Pharma is buying Organon in a deal valued at about $11.75 billion including debt, ‌making it the largest overseas acquisition by an Indian pharma company.

It eclipsed another large overseas bet just months ago by IT firm Coforge to acquire artificial intelligence firm Encora for $2.35 billion, and Tata Motors' purchase of Italian commercial vehicle manufacturer Iveco for $4.45 billion in July 2025.

The first quarter of 2026 has seen 56 outbound transactions valued at $3.9 billion, according to data from advisory firm Grant Thornton Bharat LLP. In 2025, 162 such deals worth $18.2 billion were closed.

Proximity to customers, control over distribution and insulation from trade barriers are important drivers of outbound M&A, said Bhavesh Shah, managing director and head of investment banking at Mumbai-based investment bank Equirus Capital.

"What’s changed is the rise in capability-led acquisitions, whether it’s R&D, specialty products, or technology," Shah said. "So earlier it was about global ambition; today it’s more a strategic necessity to stay competitive and de-risk supply chains."

Sun Pharma, for instance, is acquiring a suite of products in women's health with the Organon purchase - a segment projected to have a $600 billion opportunity. Coforge entered the much-in-demand agentic AI space with its acquisition of U.S.-based Encora.

"Together, the two deals capture the full spectrum of India's outbound ambition: buying capability where it does not exist domestically and buying global scale where organic growth would take decades," said Sumeet Abrol, partner and national leader for deals at Grant Thornton Bharat.

GROWTH OF FINANCING OPTIONS

Corporate India's overseas ambitions have ebbed and flowed over the years, and some have left individual companies burdened with debt.

The buyout rush of the early 2000s - which saw Tata Steel acquire Anglo-Dutch group Corus for $12 billion, Tata Motors buy out iconic British brands Jaguar and Land Rover for $2.3 billion and Hindalco acquire Canada's Novelis for $6 billion - was one of the reasons that led to excess leverage on corporate balance sheets.

But after a decade-long clean-up, debt on most Indian corporate balance sheets is low. The median debt-to-EBITDA for rated Indian corporates was at 0.5 times as of March 2026, while interest coverage ratio was 5 times, according to rating agency CRISIL.

Recent deals don't immediately raise red flags, analysts said.

"Funding has been quite disciplined this cycle. It’s a good mix of internal accruals and moderate leverage," said Equirus' Shah.

Transactions such as Tata Motors' purchase of Iveco have also seen the increased use of guarantees to raise debt in overseas units. Tata Motors issued a $2.26 billion guarantee to back financing for the deal.

"The availability of debt financing on target balance sheets in overseas markets (LBOs) with no or limited recourse to acquiring balance sheets in India is also fueling some of this activity while keeping the Indian balance sheets deleveraged," said Grant Thornton's Abrol, adding that these financing options are increasingly available to even mid-market companies.

Abrol, however, said the deal struck by Sun Pharma is a transaction that needs to be "watched carefully" for balance sheet discipline.

"Post-transaction, the combined entity's net debt-to-EBITDA is projected at 2.3x — manageable, but a meaningful departure from Sun Pharma's historically net cash positive position," he said.

The company said it aims to bring down debt "soon", with analysts expecting a three-four year period for debt reduction.

MARKET MATTERS

Foreign investors have continued to offload Indian shares, selling a net $6.5 billion in April after dumping $12.7 billion in March. With no quick resolution to the war between U.S.-Israel and Iran, investors expect earnings growth in India to slow, making valuations unattractive. Read here.

The persistent outflows have pushed the rupee back down to record lows despite steps taken by the central bank to support the currency.

The Indian central bank is mulling steps to draw dollar flows, Reuters reported on Monday.

THIS WEEK'S MUST-READ

The Tata Group has zoomed in on two possible options for the post of Air India CEO, which fell vacant when Campbell Wilson resigned last month. Singapore Airlines executive Vinod Kannan and Air India's commercial head Nipun Aggarwal are the two frontrunners to become the new CEO of Air India, Reuters' Aditya Kalra and Abhijith Ganapavaram report.

(Reporting by Ira Dugal; Editing by Muralikumar Anantharaman)

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Corrects fifth paragraph to show that Sun Pharma’s return on its acquisition is 12.9%, not nearly 18% as previously stated. The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Shritama Bose

MUMBAI, April 27 (Reuters Breakingviews) - A quest for new markets is charging up outbound M&A in India. In what could be one of the country's largest ever cross-border acquisitions, Sun Pharmaceutical Industries SUN.NS, its top drugmaker by revenue, on Monday said it will buy U.S.-based Organon OGN.N for nearly $12 billion, including debt. The deal gives the buyer access to other parts of Asia and deepens its European presence as well as Organon's position in women's health. Investors may quibble about the cash burn but it’s a price worth paying.

Sun Pharma offered $14 for each Organon share in the all-cash transaction, representing a 24% premium to the target’s closing price on Friday. For its $12 billion, the Indian group gets a commanding position in women's health, including menopause treatments where Organon is a global leader, alongside a portfolio of hard-to-replicate biosimilars. The acquisition also hands Sun a foothold in China and South Korea, two markets it has long coveted, and a direct-to-consumer sales platform in Europe that could reshape how it reaches patients across the continent.

The tricky part is boosting growth at the New Jersey-based target, which logged a 3% fall in its revenue last year. Sun Pharma could boost an already fast-growing market for contraceptives and fertility products and still-developing therapies for unmet needs, such as menopause-linked complications. Revamping Organon will require its new owner to leverage its global partnerships for marketing and spruce up supply chains.

But this all comes at a price. To capture that long-term opportunity, Sun is splashing its cash, a rare move for an Indian company. After the acquisition the Indian drugmaker’s net debt will be equivalent to 2.3 times its EBITDA.

The gamble may well pay off. Organon is expected to earn around $1.8 billion of operating profit in 2028, per LSEG forecasts. Sun Pharma expects the merger will eventually generate $350 million in synergies. Assuming Organon's tax rate stays at 29.5%, Sun Pharma can reap a 12.9% return on investment by 2028, well above the U.S. pharmaceutical industry’s weighted average cost of capital of 7.85%, according to data from NYU Stern School of Business.

To be sure, analysts are concerned about the target's thinning pipeline of exclusive products and increased pricing pressure. The cure, ultimately, will hinge on Sun Pharma's ability to revive a business with more potential than its recent results suggest.

Follow Shritama Bose on LinkedIn and X.

CONTEXT NEWS

Sun Pharmaceutical Industries will buy all the outstanding shares in U.S.-based drugmaker Organon in an all-cash transaction valuing the target's enterprise, including debt, at $11.75 billion, the companies said in a joint statement on April 27. The Indian acquirer will pay $14 a share, a 24% premium to Organon's closing price on April 24.

Shares in Sun Pharma were trading nearly 7% higher at 0626 GMT on April 27.

(Editing by Aimee Donnellan; Production by Ujjaini Dutta and Shrabani Chakraborty)

((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))

Adds Sun Pharma close, Organon share move; paragraphs 6,9

By Kashish Tandon and Rishika Sadam

April 26 (Reuters) - Sun Pharmaceutical Industries SUN.NS will buy U.S. drugmaker Organon & Co OGN.N in an all-cash deal valued at about $11.75 billion including debt, for the largest overseas acquisition by an Indian pharmaceutical company.

The move comes as Sun, India's biggest drugmaker by market value, steps up a push into higher-margin specialty medicines with a sharper focus on areas such as dermatology, oncology and obesity to offset declining U.S. sales.

Shifting tariff policies in the United States have squeezed margins for one of India's drugmakers most exposed to the American market, prompting it to keep open the option of expanding manufacturing there.

Though positive from an earnings standpoint, the deal is unlikely to materially change Sun's position in the United States, where Organon has a relatively small footprint, said Shrikant Akolkar of Nuvama Institutional Equities.

The acquisition will double Sun's revenue and EBITDA, adding $6.2 billion in sales with robust 30% EBITDA margins, Akolkar said, adding that the deal is projected to be 30% to 40% EPS accretive by FY28.

Sun Pharma's shares settled up 7% for a boost of 271.36 billion rupees ($2.88 billion) in market value, but off a rise of as much as 9% after the news.

"It also gives Sun access to markets such as China, Brazil and other emerging regions where its presence has been limited, helping it scale up as a branded and specialty drugs player," the pharma analyst added.

Sun Pharma, valued at more than $40 billion, said it would buy Organon for $14.00 a share, or a premium of more than 24% to the April 24 closing price.

Shares of Organon climbed 16% to $14.06 in premarket trade.

It plans to fund the deal through cash and committed bank financing, with Organon carrying net debt of about $8.6 billion as of December 31, 2025.

For the same period, Sun's debt was roughly $198.4 million and profit stood at $1.16 billion.

With funding coming from a strong balance sheet, debt concerns should ease by the third year, positioning Sun as a more dominant player by decade's end, Akolkar added.

The acquisition is also expected to strengthen Sun's women’s health portfolio and mark its entry into biosimilars.

It will gain access to Organon's portfolio of more than 70 women's health and general medicines sold across about 140 countries, adding global scale and a steady cash‑generating business alongside its specialty pipeline.

($1=94.1312 rupees)

($1=94.1900 rupees)

(Reporting by Mihika Sharma, Akanksha Khushi and Kashish Tandon in Bengaluru; Writing by Chandini Monnappa; Editing by Subhranshu Sahu and Clarence Fernandez)

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April 24 (Reuters) - Sun Pharmaceutical Industries Ltd SUN.NS:

• SUN PHARMA - INCORPORATES SUN PHARMA AMERICA, INC. IN UNITED STATES

Source text: ID:nBSE5kvvyT

Further company coverage: SUN.NS

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-- Source link: https://tinyurl.com/eu9hk23y

-- Note: Reuters has not verified this story and does not vouch for its accuracy

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By Rishika Sadam

HYDERABAD, India, April 3 (Reuters) - Soon-to-be brides and grooms seeking shortcuts to shed pounds before the big day have become the latest consumer target for weight-loss drugs in India.

New Delhi wellness clinic Klarity Skin Clinic touts a "Mounjaro bride" package, while other clinics have woven weight-loss injections into "pre-wedding" transformation packages typically focused on skin treatments and hairstyle makeovers.

In a social media video, Klarity offers "guided nutrition, Mounjaro and smart workouts" to prepare brides to walk down the aisle. The clinic did not respond to a request for comment.

Eight doctors interviewed by Reuters said they have been fielding inquiries from brides, and some grooms, about taking weight-loss drugs before taking their vows. Many asked for Eli Lilly's LLY.N Mounjaro, the first GLP-1 medication to enter India's market for both diabetes and weight loss. It has become more sought after than Novo Nordisk's NOVOb.CO rival Wegovy, the doctors said.

"Over the last few months, over 20% of the queries we've received for obesity injections are from to-be brides, who also openly give us a timeline on how soon they are getting married," said Rajat Goel, a bariatric surgeon at Hindivine Healthcare in New Delhi.

He said he prescribed the drugs only if patients were medically eligible, not for cosmetic use.

TRADITION AND SOCIETAL PRESSURE

Weddings in India are grand affairs for families that can afford them, with culture and tradition exerting a strong influence. Many marriages continue to be arranged by families, often bringing expectations around physical appearance and financial status.

Aditi, a 26-year-old finance worker from Mumbai, consulted a doctor in November for a weight-loss prescription after exercise and diet failed to get the desired results.

"When I see the result, I feel happy,” Aditi said about losing 10 kilograms (22 pounds) on Mounjaro before her February wedding. "If I am not happy, I don't feel confident. I did not want to feel that way at the time of the wedding."

She is one of the half a dozen brides, and one groom, who spoke to Reuters about pre-wedding use of weight-loss drugs, but asked not to use their family names due to social stigmas. They cited societal pressure to look a "certain way" at their wedding and most had discontinued the injections soon after.

Novo and Lilly launched their obesity drugs in India last year. The market is forecast to reach 80 billion rupees ($851.79 million) by 2030. Mounjaro sales doubled in the months after launch, making it the highest-selling drug in the world's most populous nation.

Indian drugmakers began selling cheaper versions of Novo's medicine last month after the patent on semaglutide, its active ingredient, expired, widening access.

The drugs are intended for adults classified as obese, or for those considered overweight with a weight-related medical condition such as diabetes, hypertension or sleep apnea.

"Mounjaro has been approved by regulators for specific medical indications and is intended to be used only under the supervision of a qualified healthcare professional," Lilly said in a statement.

The lowest Mounjaro injection pen dose sells for 13,125 rupees ($139.50) per month in India, while the highest dose costs 25,781 rupees.

Novo, which this week cut prices of Ozempic and Wegovy for the second time, is selling the lowest Wegovy dose for 5,660 rupees ($60.90) and the highest for 16,400 rupees a month.

Novo said it discourages any form of self-medication of semaglutide or deviation from the indicated use on label.

CHEAPER DRUGS, MISUSE CONCERNS

India could have more than 440 million overweight or obese people by 2050, one of the world's highest totals, according to The Lancet.

Akshitha, who got married in Hyderabad last year, said the drugs helped her shed 15 kg (33 pounds), taking her weight to 76 kg before the wedding. A family doctor had suggested she try the injections when she worried about her weight, she said.

"There's so much chaos before the wedding, with all the planning and preparation. I knew I would not get time to go to the gym and be on a diet. That's when these drugs looked like a better option," she said, adding she might consider using them again after a future pregnancy.

With local drugmakers flooding the market with cheaper weight-loss medicines, India's drugs regulator has raised concerns about misuse and intensified scrutiny of unauthorized sales and promotion.

"We understand the curiosity, but this cannot be a quick fix," said Dr. Swati Pradhan, founder of obesity and metabolic wellness clinic Live Light.

Pradhan said she prescribed the injections to only a few soon-to-be brides if they were medically eligible and showed signs of other medical issues, while insisting on lifestyle changes for sustainable results.

For 27-year-old Priya, a tech worker from Bengaluru, weight-loss drugs became a way to counter body-shaming from prospective grooms' families.

"I've had men and their families reject my proposal because of my weight. I was told I was fat," Priya told Reuters.

She initially used Novo's oral semaglutide, approved in India for diabetes, as an off-label treatment and lost more than 12 kg before switching to injectable Mounjaro.

Her search for a groom continues.

($1 = 94.0850 Indian rupees)

(Reporting by Rishika Sadam in Hyderabad; Editing by Bill Berkrot)

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Adds details, background, comments

By Rishika Sadam

March 31 (Reuters) - Novo Nordisk NOVOb.CO has again cut the prices of its blockbuster diabetes and weight-loss drugs Ozempic and Wegovy by up to 36% and 48% in India, to fend off competition from cheaper generics made by local drugmakers.

India's market for diabetes and weight-loss drugs is set for a shake-up after the Danish drugmaker's patent on semaglutide, the active component in Ozempic and Wegovy, expired on March 20.

At least half a dozen Indian drugmakers, including Dr Reddy's REDY.NS, Zydus ZYDU.NS and Sun Pharma SUN.NS, launched multiple brands of the blockbuster diabetes and weight-loss drugs, up to 70% cheaper than Novo's drugs in some cases.

Ozempic's and Wegovy's lowest doses of 0.25 mg in India will now be priced at 1,415 rupees ($15.04) for a weekly shot from 2,200 rupees and 2,712 rupees earlier, respectively, Novo Nordisk India said in a statement on Tuesday.

The average price reduction across doses is 23.8% for Ozempic and 27% for Wegovy, it said.

"We've heard from patients and doctors, and we're acting on that feedback," said Vikrant Shrotriya, managing director at Novo Nordisk India, adding that the drugs also offer cardiovascular benefits.

The entry of generics will also challenge Novo and U.S. rival Eli Lilly LLY.N, which launched its blockbuster diabetes and obesity drugs in India last year, as they seek to cement their position in the country.

Lilly's Mounjaro became India's top-selling drug by value within months of its launch, according to data from Pharmarack, a research firm.

Novo's Ozempic is available in three dose strengths of 0.25 mg, 0.5 mg and 1 mg in India, while Wegovy has five dose strengths.

Ozempic's and Wegovy's 1 mg weekly shot is now priced at 2,275 rupees ($24.18) after price cuts of 18.5% and 34.2%, respectively. The company slashed Wegovy's 0.5 mg dose price by 41.5% to 2,025 rupees.

"..this price reduction reflects how innovation can become more accessible when market dynamics evolve," Venu Gopal Pareek, a bariatric surgeon said, adding that patients might choose Novo's drugs over generics given that it is an original molecule, and if the price difference is not beyond 15%.

Last year, Novo slashed Wegovy's price for the first time by up to 37% from its launch price, anticipating stiff competition from local drugmakers.

($1 = 93.9890 Indian rupees)

(Reporting by Rishika Sadam and Yagnoseni Das in Bengaluru; Editing by Devika Syamnath and Janane Venkatraman)

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