Did India's largest pharmaceutical company seize the opportunity to acquire a century-old U.S. pharmaceutical giant at a bargain price? With Ortho-McNeil’s market value down 81%, it now faces a potential 'harvest'?

In 2009, Merck & Co. acquired Schering-Plough, and Organon became Merck’s division focused on women’s health, biosimilars, and established brands. The global blockbuster drug 'Keytruda' (K drug) originally emerged from Organon’s R&D team. At the time, Organon aimed to develop a PD-1 agonist—intended for autoimmune diseases (e.g., arthritis), not oncology. Though the PD-1 program failed to yield an effective agonist, it unexpectedly produced a highly potent PD-1 antagonist. Consequently, the project was shelved as a failure. Later, following two acquisitions, Organon came under Merck’s umbrella. Within Merck, this PD-1 project initially received very low priority—and even faced potential divestiture. However, as clinical data on immune checkpoint inhibitors in oncology began delivering stunning results, Merck recognized its immense potential, ultimately giving birth to a 'blockbuster drug'. 02. Market Capitalization Down 81%: A Century-Old Giant Faces Short-Term Challenges Organon has become the rumored acquisition target of Sun Pharmaceutical—perhaps precisely because its 'high-quality assets' combined with 'current challenges' have created a compelling value gap, aligning perfectly with Sun Pharma’s M&A strategy. Thanks to its outstanding innovation capabilities, Organon has developed numerous globally acclaimed, best-selling products. Today, it markets over 70 trusted products across more than 140 countries and territories, covering therapeutic areas including fertility, cardiovascular disease, respiratory disorders, central nervous system conditions, and bone health. Examples include Enovid—the world’s first oral contraceptive—and Cyclessa—the world’s top-selling oral contraceptive. In June 2021, Merck spun off its women’s health, biosimilars, and established brands businesses; Organon became an independent U.S.-listed company. In recent years, however, Organon’s flagship product lines have encountered mounting challenges: its contraceptive vaginal ring NuvaRing faces intense generic competition, leading to a 17% sales decline in the first three quarters of 2025; Atozet (a cholesterol-lowering drug) saw a 35% quarterly sales drop after losing market exclusivity in France and other countries; Singulair (a respiratory medication) suffered a 37% quarterly sales decline due to international price cuts and weakening demand. Additionally, Organon faces approximately $3.6 billion in debt maturing in 2028. In October 2025, Organon announced that its founding CEO, Kevin Ali, had resigned and stepped down from the Board of Directors. This move followed an internal investigation by the company’s Audit Committee, which uncovered improper sales practices between 2022 and 2025. Thereafter, Organon also dismissed its U.S. Commercial and Government Affairs Head. *** According to the investigation: Organon pressured specific U.S. wholesalers to purchase Nexplanon contraceptive implants far exceeding their actual demand—causing those wholesalers to halt subsequent orders and directly impacting Q4 2025 sales. By late October 2025, Organon’s market capitalization had plunged to its lowest level since its IPO—down over 81% in just three years. To alleviate financial strain, in November 2025, Organon sold its star product—the Jada System for postpartum hemorrhage control—to medical technology company Laborie Medical Technologies for $465 million. To date, Organon has declined to comment on the acquisition rumors.

February 19, 2025: Will India’s pharmaceutical industry face threats from Trump?

The above image is sourced from the internet. Translated by Li Mengmai According to Indian media reports, on February 18, former U.S. President Donald Trump stated his intention to impose tariffs of '25% or higher' on semiconductor and pharmaceutical imports—and to significantly raise these tariffs within one year—a move that could severely impact India’s massive pharmaceutical industry. According to data from the India Pharmaceutical Export Promotion Council (an Indian government-supported trade body), the United States remains the largest export market for most Indian generic drug manufacturers. In FY2024, exports to the U.S. reached $8.7 billion—accounting for roughly 31% of the sector’s total exports. Indian pharmaceutical companies supply affordable generic alternatives to expensive innovative drugs in the U.S. market. Data shows that in 2022, nearly half of all generic prescriptions filled in the U.S. were supplied by Indian pharmaceutical firms—saving the U.S. healthcare system an estimated $408 billion that year. Below are major Indian pharmaceutical companies heavily reliant on the U.S. market: Sun Pharmaceutical India’s largest pharmaceutical company derived 32% of its FY2024 total revenue from the U.S. market. Earlier this week, Sun Pharma told local media that any additional tariffs would be passed on to consumers. Its products are exported to 100 countries, with overseas sales accounting for 72.7% of its total FY2024 revenue. Dr. Reddy’s Laboratories North America is the company’s largest market, contributing 47% of its FY2024 total sales. Dr. Reddy’s relies primarily on key generics in oncology and immunology to drive regional growth—up 28% year-on-year. Like other Indian pharma firms, Dr. Reddy’s also pins hopes on future launches of weight-loss generics yet to enter the U.S. market. Cipla India’s third-largest pharmaceutical company by revenue derived 30% of its FY2024 total income from North America—its second-largest market.

India's Aurobindo Pharma Quarterly Profit Rises by a Third on Strong US Demand

12 hours ago

Indian drugmaker Aurobindo Pharma reported a 33% rise in second-quarter profit to $118.89 million, driven by strong US demand and acquisitions. Revenue grew 24%, supported by 10 new drug launches and an injectables ramp-up in the US market.

reuters

2026-11-04

India's Aurobindo Pharma Quarterly Profit Rises by a Third on Strong US Demand

India's Aurobindo Pharma Quarterly Profit Rises by a Third on Strong US Demand

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