Transcript: Sun Pharma - Organon Acquisition Investor Call

Sun Pharma announced acquisition of Organon & Company for $14 per share, representing $3.99 billion equity value and $11.75 billion enterprise value. The deal will nearly double Sun's revenue to $12.4 billion, making it a top 25 global pharma company. Organon brings women's health leadership (#3 globally), a commercial footprint in 140 countries, 6 biosimilar products, and importantly, an $800 million business in China where Sun currently has negligible presence. Sun will fund $2-2.5 billion from its cash reserves and the balance through committed bank financing, taking on net debt of 2.3x EBITDA. Management expects $350 million in cost synergies over 2-4 years. The deal is expected to close in 6-9 months and is EPS accretive from day one. Chairman Dilip Shanghvi compared this deal to the Ranbaxy acquisition but noted Organon has similar size/profitability with only 20-22% equity dilution versus Ranbaxy's 80% size and losses.