In the backdrop of benchmark stock market index Sensex rallying over 700 points or nearly 1%, stock market expert Sunil Shah said D-street is getting convinced regarding the outcome of the West Asia current crisis and how diplomacy will play a major role rather than armed forces.
“Markets are now getting more and more convinced regarding the outcome of the West Asia current crisis that the issue will be resolved diplomatically rather than through military force,” he said.
Further, he noted that “one of our leading pharma companies has signed a definitive agreement to acquire a US company for $11 billion… Everything is very positive, and this company has very heavy weightage in the Benchmark industries. That’s the reason that markets are up, and it looks like things will improve from here.
Sun Pharma is set to acquire the global healthcare company Organon in an $11.75 billion all-cash deal, which is likely to be finished by 2027. Under the agreement, Sun Pharma will pay $14 per share to acquire 100% of Organon’s outstanding shares.
This major pharma acquisition move will likely make the rank combined entity among the top 25 global pharmaceutical firm on the basis of revenues. Further, it will also become a top three player globally in women’s health and the seventh-largest biosimilars company.
Kirti Ganorkar, Managing Director of Sun Pharma, said, “This transaction is a logical next step in strengthening Sun Pharma’s global business. Together, we will become a partner of choice for acquiring and launching new products. Our immediate priorities will be business continuity, disciplined integration and responsible value creation.”
J.P. Morgan Securities LLC and Jefferies LLC are serving as financial advisors to Sun Pharma.
In today’s trading session, the shares of Sun Pharma rose as much as 9.05% to hit an intra-day high of Rs 1,766.65 per share.