Sun Pharmaceutical Makes Non-Binding Offer to Acquire Organon for $10B-$14B
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Acquisition Proposal: Sun Pharmaceutical has made a non-binding offer to acquire Organon, with the deal valued between $10 billion and $14 billion, indicating market recognition of Organon's potential value and possibly driving its stock price higher.
- Financing Arrangement: Sun Pharma has secured bridge loans of approximately $10 billion to $14 billion for the acquisition, ensuring sufficient funding to support the deal and enhancing its market position in the pharmaceutical industry.
- Due Diligence Initiation: The due diligence process is expected to commence shortly, after which a binding bid will be submitted, potentially accelerating market interest in Organon and boosting shareholder confidence.
- All-Cash Transaction Expectation: Reports suggest that the acquisition will be conducted in an all-cash format, a structure that may attract more investor attention to Organon's future growth potential.
Analyst Views on OGN
Wall Street analysts forecast OGN stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for OGN is 8.50 USD with a low forecast of 5.00 USD and a high forecast of 12.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
0 Buy
1 Hold
4 Sell
Strong Sell
Current: 8.760
Low
5.00
Averages
8.50
High
12.00
Current: 8.760
Low
5.00
Averages
8.50
High
12.00
About OGN
Organon & Co. is a global healthcare company. The Company is engaged in developing and delivering health solutions through a portfolio of prescription therapies and medical devices within women's health, biosimilars and a franchise of established medicines across a range of therapeutic areas. It has a portfolio of approximately 70 medicines and products across a range of therapeutic areas. It has a portfolio of contraception and fertility brands, including Nexplanon, NuvaRing, and Follistim AQ. Its Biosimilars portfolio spans across immunology and oncology treatments. It also has a portfolio of established brands, including brands in cardiovascular, dermatology and non-opioid pain management. It sells these products through various channels, including drug wholesalers and retailers, hospitals, government agencies and managed health care providers, such as pharmacy benefit managers and other institutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
