Organon (OGN) stock was on the rise Friday alongside reports that Sun Pharmaceutical Industries (IN:SUNPHARMA) is prepared to purchase the company. According to these reports, Sun Pharmaceutical Industries, an Indian pharmaceutical company, intends to submit a $13 billion bid for U.S.-based healthcare company Organon.
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Sun Pharmaceutical Industries isn’t the only company that is interested in Organon. The reports claim that German pharmaceutical company Grünenthal and Swedish private equity firm EQT have also made offers for Organon. The interest in Organon is due to the company’s large portfolio of medicines and treatments. Investors will note that the company was spun off from Merck (MRK) in June 2021.
Sun Pharmaceutical Industries has reportedly submitted multiple bids for Organon over the past several weeks. Earlier this month it allegedly offered $12 billion for the company. Today’s reported $13 billion offer for Organon isn’t just the largest bid the company has made in this deal; it would also represent its largest acquisition to date.
Organon Stock Movement Today
Organon stock was up 25.47% on Friday, extending a 20.25% year-to-date rally. Despite these gains, the stock was still down 29.51% over the past 12 months.
Today’s news spurred heightened trading of OGN stock, with some 5.2 million shares traded just after markets opened. For comparison, the company’s three-month average daily trading volume is about 5.9 million shares.
Is Organon Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Organon is Moderate Sell, based on one Buy, two Hold, and four Sell ratings over the past three months. With that comes an average OGN stock price target of $9.60, representing a potential 11.56% downside for the shares.
