Domestic pharmaceutical companies in India are making significant strides overseas, highlighted by two major transactions within a short timeframe.
Sun Pharmaceuticals recently formalized a $12 billion (₹1,14,000 crore) acquisition of Organon, a company known for its women’s health products, biosimilars, and its presence in China. This deal marks the largest transaction in the Indian pharmaceutical sector and ranks prominently among major transactions for Indian corporations.
Shortly afterward, Zydus Pharma announced its acquisition of specialty company Assertio Holdings for $166.4 million (approximately ₹1,600 crore), which aims to enhance its portfolio in cancer medications.
Industry analysts recall Glenmark Pharma’s notable deal last July when its subsidiary entered an out-licensing agreement for a prospective cancer drug with U.S.-based AbbVie for $700 million (around ₹6,000 crore). This deal was a historic first for the Indian pharmaceutical market.
Experts view the past ten months as significant for local drugmakers, illustrating a strategic shift towards producing complex and innovative drug products. Companies possess the financial resources to pursue broader global ambitions, aiding in mitigating supply risks as governments strive for stable medicine supplies amid recent disruptions caused by both the pandemic and geopolitical conflicts.
“The risk appetite is increasing for Indian pharma to place their bets on global acquisitions as a growth strategy,” said Suresh Subramanian, National Lifesciences Leader at consulting firm EY-Parthenon India, adding that this trend spans companies of various sizes.
Despite robust domestic sales, exports play a crucial role, representing half of the estimated $60 billion pharmaceutical industry in India, projected to reach $130 billion by 2030. Overseas acquisitions are particularly beneficial in terms of navigating geopolitical uncertainties and enhancing self-sufficiency in healthcare products.
“India has the advantage of cost and labor arbitrage, coupled with emerging value propositions in complex generics and novel modalities,” remarked Subramanian. He noted that multinational companies are increasingly offshoring many processes to India, including contract research and manufacturing for new drug candidates.
Industry insiders highlight that companies like Cipla and Lupin have substantial cash reserves of ₹10,500 crore and ₹4,600 crore, respectively, ready for strategic acquisitions. Achin Gupta, Cipla’s Managing Director and Global CEO, emphasized the potential for acquisitions in the U.S. or Europe. Similarly, Lupin’s Nilesh Gupta expressed the firm’s focus on specialty products in the U.S. market and prescription drugs in India.
Vishal Manchanda, Senior Vice-President of Institutional Research at Systematix Group, underscored the importance of innovation, stating that to compete in a $900 billion market, companies must either innovate or acquire innovative capabilities.
Sonam Chandwani, Managing Partner at KS Legal and Associates, pointed out that these recent acquisitions signal Indian pharmaceutical firms are advancing beyond low-cost generic production to establish themselves as long-term global players with enhanced access to regulated markets and proprietary technologies.
Chandwani believes that these transactions signify more than just expansion; they also facilitate the acquisition of specialized knowledge and stronger market presence in the U.S. and Europe. The aftermath of the Covid pandemic has accelerated the urgency for reliable pharmaceutical partnerships, prompting Indian companies to leverage overseas acquisitions to bolster their credibility and enhance their roles within global healthcare supply chains.
From a legal perspective, these deals reflect the evolving sophistication of Indian companies in navigating cross-border regulations and compliance structures, signaling a transition towards a phase of greater focus on innovation within the pharmaceutical sector.
Published on May 18, 2026.
