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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.
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India's largest drugmaker Sun Pharmaceutical Industries has reportedly signed an agreement with the US government to extend affordable medicines to American patients.
According to a report by news agency PTI, the Mumbai-based pharma company entered into a deal to provide 'Most Favoured Nation' (MFN) pricing to state Medicaid programmes in the United States. Under the MFN pricing, a buyer can avail the lowest price possible for a medicine.
In a regulatory filing on Tuesday, Sun Pharma said the agreement to provide MFN pricing will also apply to the company's future innovative medicine launches in the US market.
The US government has delayed the imposition of tariffs under Section 232 on Sun Pharma's innovative products by over two years as the deal acknowledges the company's investment in the country. Further details of the deal were not revealed by the company.
Sun Pharma's North America CEO Rick Ascroft, who represented the firm at the White House, said the United States was a crucial area of investment and expansion across clinical development, sales and marketing, and both Active Pharmaceutical Ingredient (API) and finished products manufacturing.
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Sun Pharma expanding footprints in US
The US has emerged as the Indian pharmaceutical brand's largest market for innovative medicines. The country contributes a major share of the company's total global revenue at about 27 per cent.
Sun Pharma has been increasing its presence in the West. Earlier this year, the company inked a definitive deal to acquire Organon & Co. at an enterprise value of USD 11.75 billion.
The Indian pharma said it holds the second position by prescriptions in the US dermatology segment and is entering into immunology, cutaneous oncology, and ophthalmology. The company claimed that its global innovative medicines portfolio now accounts for about 22 per cent of total company sales.
Shares of Sun Pharmaceutical Industries Ltd were trading 0.60 per cent down at 1,944.25 on the BSE on Tuesday.
US signs over 20 deals for cheaper drugs
This deal between Sun Pharma and the White House was among several other pharma deals signed between the two sides. The United States has struck drug-pricing deals with more than 20 pharmaceutical companies in a bid to reduce prescription costs. In the US, the drug prices are often nearly three times higher than those paid by patients in other developed countries, news agency Reuters reported.
