India's largest drugmaker Sun Pharma inks deal with US govt to supply cheaper medicines to Americans
The Mumbai-based pharma company will provide 'Most Favoured Nation' pricing to state Medicaid programmes in the United States.
Leading Indian pharmaceutical company Sun Pharmaceutical Industries has entered into an agreement with the United States government to provide affordable medicines to American patients through state Medicaid programs. The deal involves offering Most Favoured Nation (MFN) pricing, which grants access to the lowest available price for medications. Sun Pharma's new pricing agreement will also cover the company's upcoming innovative medicines introduced in the US market.
The US government has postponed imposing tariffs under Section 232 on Sun Pharma's innovative products by over two years, acknowledging the company's substantial investment in the country. The terms of the deal remain undisclosed by Sun Pharma. Rick Ascroft, Sun Pharma's North America CEO, stated that the United States represents a vital area for investment and growth in clinical development, sales, marketing, and manufacturing of Active Pharmaceutical Ingredients and finished products.
The US is Sun Pharma's largest market for innovative medicines, contributing nearly 27% of the company's total global revenue. The Indian pharma giant has been expanding its presence in the West, recently acquiring Organon & Co. for USD 11.75 billion. Sun Pharma now accounts for approximately 22% of the company's global sales in innovative medicines.
Sun Pharma's shares saw a slight decline of 0.60% to 1,944.25 on the BSE on Tuesday. This partnership is among several pharma deals signed between the two parties, aiming to reduce prescription costs in the US, where drug prices are often nearly three times higher than in other developed countries.
Written by urgent.news from Hindustan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
