Sun Pharma Signs Agreement with US Government for Most Favoured Nation Pricing

Sun Pharmaceutical Industries has signed an agreement with the United States government to extend 'Most Favoured Nation' (MFN) pricing to state Medicaid programmes and future innovative medicines. The company is among nine drugmakers to sign the agreement in the US.

According to a company note, the agreement recognises Sun Pharma’s investment in the US market by delaying Section 232 tariffs on innovative pharmaceutical products for over two years. Other specific terms of the agreement remain confidential. Rick Ascroft, Sun Pharma’s North America CEO, represented the company at the White House signing ceremony.

US President Donald Trump announced nine new agreements with pharmaceutical manufacturers to lower prescription drug prices for Americans in line with the lowest prices paid by other developed nations. The White House noted that these agreements bring the total number of pharmaceutical manufacturers with MFN deals to 26, covering 89 percent of the branded drug market.

The group of nine midsized companies that signed alongside Sun Pharma includes Alcon, Astellas Pharma, BeOne Medicines, BridgeBio, CSL, Kyowa Kirin, Teva Pharmaceuticals, and UCB. The White House stated that the agreements reduce prices on drugs addressing chronic and rare conditions, including hemophilia, Parkinson’s disease, macular degeneration, glaucoma, liver disease, skin conditions, and various forms of cancer.

As part of the commitments, Sun Pharma will contribute 71.4 tons of clindamycin and 6.75 tons of doxycycline, both antibiotics used to treat bacterial infections, to the Strategic Active Pharmaceutical Ingredients Reserve (SAPIR), a US programme to stockpile Active Pharmaceutical Ingredients.

The development follows Sun Pharma's recent agreement to acquire US company Organon & Co. in an $11.75 billion transaction. Commenting on the company's footprint, Rick Ascroft stated that the United States is a key area of investment and expansion across clinical development, sales, marketing, and the manufacturing of both APIs and finished products.

Sun Pharma has been actively building its US specialty and innovative portfolio. The company ranks second by prescriptions in US dermatology and maintains an expanding presence across dermatology, immunology, cutaneous oncology, and ophthalmology, alongside its consumer health products and generics business. The US currently accounts for 27 percent of Sun Pharma's global revenue and serves as its largest market for innovative medicines.

The US administration reported that as of August 31, it had established similar agreements with a broad roster of pharmaceutical firms, including Pfizer, AstraZeneca, Eli Lilly, Novo Nordisk, Amgen, Bristol Myers Squibb, Novartis, Sanofi, Johnson & Johnson, and Merck, among others.

"This agreement highlights the strategic importance of the US market for global pharmaceutical companies like Sun Pharma. By aligning with the US government's pricing frameworks and contributing to the Strategic Active Pharmaceutical Ingredients Reserve, the company is successfully navigating regulatory expectations while safeguarding its long-term investments and tariff exemptions in its largest international market for innovative medicines." — Dr. Shishir Gupta, Founder & CEO, StartupLanes