Follow the Money

Google raised $85 billion last week. Not because it was struggling. Because it could and decided the window to dominate AI infrastructure was open right now. They generate $174 billion in operating cash annually. And still went to the equity market. That’s not desperation. That’s a theory of winning.Now look at Indian pharma.Our largest capital event of 2026: Sun Pharma’s $11.75 billion acquisition of Organon, a company Merck spun off because it no longer fit their future. Sun is buying what a global innovator de-prioritised. Google is building what doesn’t yet exist.Both moves are rational. When Indian pharma raises capital, is it offensive or reactive? Are we raising from strength or after the FDA warning letter, after the US pricing erosion, after the margin compression?When we talk about innovation, is there a ring-fenced capital pool that can’t be raided when the core has a bad quarter? Or is the innovation budget the first casualty of a tough year? Indian pharma has the cash, talent and manufacturing credibility. What it hasn’t yet demonstrated is the willingness to commit capital so large, so sustained, and so patient that it forces the organisation to become something it has never been before.The full analysis including verified FY25 R&D numbers across Sun, DRL, Cipla and Lupin, and a breakdown of why the Alphabet analogy holds in some places and breaks down in others is in the podcast episode linked below.I would genuinely value the perspective of everyone in pharma strategy, investment, or R&D on where you think the analogy is fair and where it isn’t. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit mypharmareviews.substack.com