Sun Pharmaceutical Industries on Monday announced the $11.75 billion acquisition of Organon & Co., in a seemingly aggressive push into the US market that has long decided the global fortunes of Indian drugmakers. However, the biggest buyout by an Indian company in nearly 20 years also signals that the US generics market’s decades-long allure is beginning to fade for Indian drugmakers, which are now eyeing newer markets such as China, South Korea, and Spain with branded generics.

Announced early on Monday, the Organon acquisition ranks as the second-largest acquisition by an Indian company, behind Tata Steel’s 2007 deal to buy British steel maker Corus Group for $12 billion.

For years, Indian pharma rode a powerful wave in the US, as expiring patents of blockbuster small-molecule drugs opened a gold mine for low-cost generic drug makers in the world’s largest drug market. Companies like Dilip Shanghvi-led Sun Pharma built scale, profitability and global credibility by pushing into the US. Even today, the US contributes about 31% of Sun’s revenues, second only to the Indian domestic market bringing 37%.

The Organon buyout subtly but significantly alters that balance—once the deal concludes, India’s share in the combined $12.4 billion revenues of Sun Pharma-Organon drops to 17%, while the US accounts for 27%. In absolute terms, US revenues will increase from $1.9 billion to $3.35 billion, or an incremental $1.4 billion. Organon revenues in 2025 stood at $6.2 billion.

Also Read: Indian Pharma is ready to flex generics muscle as Ozempic, Wegovy patent expires today

That mismatch underscores the deal’s real intent—Shanghvi is not paying a premium to double down on the US. He is buying access—to markets, portfolios, and new therapeutic segments that lie beyond it, industry experts and analysts said.

According to Sun Pharma managing director Kiran Ganorkar, the real value is in geographic diversification. It opens up markets such as Korea where Sun had little or no presence, and strengthens its foothold in regions like China and Spain where Organon already has scale.

The acquisition improves Sun’s penetration into select large markets such as China and South Korea, Bino Pathiparampil, head of research at Elara Capital said in a report.

China, in particular, stands out as a strategic prize. In a statement, Sun’s Ganorkar described it as an “untapped $150 billion opportunity”, and the buyout provides Sun with a ready-made platform to participate in that growth. More broadly, the complementary portfolios of Sun and Organon, especially in branded generics, create opportunities for cross-selling across multiple regions, an industry executive said, asking not to be identified.

Also Read: Sun Pharma to buy US-based oncology firm with new skin cancer treatment product for $355 million

The shift comes at a time when the US generics market is no longer the reliable growth engine it once was. Pricing pressure has intensified, competition has proliferated, and consolidation among buyers has squeezed margins. What was once a high-growth, high-margin opportunity has increasingly become commoditized. Adding to the uncertainty are geopolitical risks, including threats of tariffs on pharmaceutical imports, which have made exporters wary of overexposure to a single market.

The US opportunity has also changed at a structural level. The era of frequent blockbuster patent expiries in small-molecule drugs is tapering off. Innovation is shifting toward biologics and specialty therapies—segments that are more complex, capital-intensive, and less accessible to traditional generics players. For Indian companies, this means fewer easy wins in their most important export market.

Goldman Sachs maintained its buy rating on Reliance Industries with the target price at Rs 1,910. Analysts said the company reported Jan-March (Q4FY26) earnings before interest, taxes, depreciation and amortisation (EBITDA) miss due to weak oil-to-consumer (O2C) margin capture, while high crude premiums and logistics costs offset strong product cracks. Analysts expected sequential margin recovery in the coming quarters. They also said that the retail growth was strong, but margins were impacted by quick commerce. They also feel the company’s integrated model would benefit from tightening downstream environments. And feel that the earnings recovery would be led by refining and chemicals normalization. Nomura has a buy rating on Axis Bank with the target price at Rs 1,560. Analysts said that in Q4FY26, the bank’s credit cost beat salvaged a soft-core quarter. It reported that pre-provision operating profit (PPOP) was below estimates while profit after tax (PAT was in line. The bank also reported a strong improvement in asset quality while its robust loan growth was driven by the corporate segment. They feel the bank’s valuations look attractive. HSBC has a buy rating on Shriram Finanace with the target price at Rs 1,200. Analysts said that the company’s Q4FY26 earnings beat was driven by strong operating cost control, resulting in sharp expansion in return on assets (RoAs). They also feel that uncertain macro environment and a weaker monsoon would be key monitorables for growth and asset quality outlook. They expect lower assets under management (AUM) compounded annual growth rate (CAGR) to 16% over FY26-FY28, down from 18% earlier, amidst expectations of weaker monsoon and slowdown in vehicle sales. However, this impact would be more than offset by lower operating cost assumptions over FY27-FY28, they said. Jefferies has a buy rating on IndusInd Bank with the target price at Rs 1,100. Analysts said that the bank’s performance in Q4FY26 was encouraging with earnings ahead of estimates aided by lower credit cost and higher treasury gains. Profit of Rs 500 crore was ahead of estimates. The ladership team and the board-resets are largely done, and from now on the quality of collaboration will be the key. Analysts expect uptick in growth and improvement in profitability. They lifted estimates and said upsides can come from better treasury and lower opex. UBS has a sell rating on IDFC First Bank with the target price at Rs 70. Analysts said the bank’s PAT was impacted by multiple one-offs while its asset quality improved sequentially. They also said that the bank’s loan growth remained steady, while margins expanded by 17 basis points over the quarter. Management guided for improvement in deposits and expected margins to remain stable. Analysts cut margin assumptions and fee income but also lowered opex. (Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)

The government is taking decisive steps towards rolling out blended diesel and commercial liquefied petroleum gas, finalising a set of standards for such fuels to reduce reliance on imports and boost energy security amid lumbering geopolitical tensions, people aware of the matter said.

The Bureau of Indian Standards (BIS) is examining inputs from refiners and the transport industry to finalise specifications for diesel blended with 10% iso-butyl alcohol (IBA), a flammable liquid typically produced from fermented grains. Publication of the standard is expected by June 15, 2026, according to a status report reviewed by HT.

Technical teams at BIS, India’s standards-setting body, are working through consultations with stakeholders before finalisation, one person familiar with the process said.

Separately, the government is also preparing final standards for dimethyl ether (DME)-blended LPG for commercial use by May 15. A revised benchmark is expected to be notified after consultations, according to people aware of the matter. DME is a gas that can be produced from natural gas, coal and biomass. Officials said blended LPG is being considered only for commercial applications, while household LPG cylinders will continue with conventional fuel mixes.

“The contents of domestic LPG cylinders will remain unblended,” one person said, adding that DME blends may not be suitable for household cooking use.

The draft standard for IBA-blended diesel was prepared by a working group led by Bharat Petroleum Corp executive Dr Bharat Newalkar and based on fuel-characterisation studies by leading oil marketing companies.

Further sample analysis was later carried out by oil companies, with Bharat Petroleum Corp assigned coordination of the process, officials said.

A draft standard is expected to be released for public comments before final notification.

India already has a benchmark for blended LPG covering household, commercial and industrial uses, excluding automotive applications, though it has not been implemented.

Officials said the government has now decided to prioritise blended LPG for commercial use, prompting revisions to the existing standard.