Sun Pharma: The Big, Bold, & Beautiful acquisition of Organon: A winner‘s Curse?

Research evidence excerpt

Sun Pharma: The Big, Bold, & Beautiful acquisition of Organon: A winner‘s Curse?

Nandan Kulkarni +91 22 6842 1436 nandan.kulkarni@bernsteinsg.com 17 June 2026

EXHIBIT 19: Synergy playbook for Integration office setup for the deal

Long Term Synergy: Annual Run Rate and Number of Years to 100% Synergy

R&D optimiztion 3

EU rtionalization and Mfg network 4

Portfolio basket revenue synergy 2

Mfg Offshoring Subtotal 5

0 100 200 300 400

Annual Run Rate X # of Years to 100% Synergy

Source: Company Reports, Bernstein Analysis

In Summary, we expect a Revenue Synergy of ~$ 550 Mn by FY31 post the acquisition of Organon.

EXHIBIT 20: We believe Sun will reach 3X revenue orbit in four-five years with this deal

Sun Pharma FY30 Revenue Bridge post Organon Acquisition

20,000

16,000

12,000

Mn

$

8,000

-

4,000

Sun Pharma FY26E Organon FY26E Sales Growth due to Sun & Synergy due to the Sun Pharma FY30

Sales Organon Core Acquisition Consolidated Sales

Business

Source: Company Reports, Bloomberg, Bernstein Analysis

The valuation framework should focus on what Organon becomes inside Sun, rather than where Organon traded as a

standalone company, which will be visible in the next 18-24 months. Organon was a low-growth, levered asset trading at 6x

EV/EBITDA, while Sun has traded closer to 20-24x, supported by stronger specialty execution, balance-sheet quality and

13% revenue CAGR over the last five years despite its already large base. The combined company should not retain Sun’s

full standalone multiple immediately, but Organon also should not be valued as a static 6x asset once integrated into Sun’s

commercial and operating platform. Under Sun, the portfolio benefits from better execution, faster deleveraging, broader

emerging-market reach and clearer revenue-synergy potential.