New Delhi: Sun Pharmaceutical Industries Ltd has entered into an agreement with the US government to support access to affordable medicines for American patients.
Under the agreement, signed during a ceremony at the White House, India’s largest drugmaker will extend ‘Most Favoured Nation’ (MFN) pricing to state Medicaid programs, the company said in a regulatory filing.
The MFN commitment will also cover Sun Pharma’s future innovative medicine launches in the US, according to the filing. MFN pricing generally ensures that a buyer receives the lowest price offered for a medicine.
The agreement, signed alongside several other pharmaceutical companies, also recognizes Sun Pharma’s investments in the US. As part of the arrangement, Section 232 tariffs on the company’s innovative pharmaceutical products will be delayed for more than two years. Sun Pharma did not disclose other terms of the agreement.
“The United States is a key area of investment and expansion for Sun Pharma across clinical development, sales and marketing, and both API and finished product manufacturing,” said Rick Ascroft, CEO, North America, Sun Pharma, who represented the company at the White House. The US is Sun Pharma’s largest market for innovative medicines, accounting for about 27 percent of its total global revenue.
The company has continued to expand its presence in the country, including through its definitive agreement earlier this year to acquire Organon & Co. at an enterprise value of $11.75 billion.
Sun Pharma currently ranks second in the US dermatology market by prescriptions and is expanding its operations in immunology, cutaneous oncology, and ophthalmology. Its global innovative medicines portfolio accounts for about 22% of total company sales, the company said.
Shares of Sun Pharmaceutical Industries closed 0.60 percent lower at ₹1,944.25 on the BSE on Tuesday.
