Sun Pharma to extend MFN pricing to US state Medicaid programmes

Mumbai: India’s largest drug company Sun Pharmaceutical has agreed to extend Most Favoured Nation (MFN) pricing to US state Medicaid programmes and future innovative drug launches under a White House initiative aimed at improving access to affordable medicines.

The agreement also delays potential Section 232 tariffs on innovative pharmaceutical products for more than two years.

The pact comes as Sun pursues its $11.75-billion acquisition of Organon, reinforcing its long-term US growth strategy.


“Sun Pharmaceutical (together with its subsidiaries and/or affiliated companies) joined several pharmaceutical companies at a White House ceremony to announce agreements with the US government aimed at prioritising access to affordable medicines for millions of American patients,” according to a company statement.

“As part of its agreement, Sun will extend Most Favored Nation (MFN) pricing to state Medicaid programs. Sun Pharma also commits to MFN pricing for future innovative medicine launches,” the statement added.

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Reacting to the news Sun Pharma shares were down about 1% on BSE in early trade on Tuesday.

The US is Sun Pharma’s largest market for innovative medicines, contributing about 27% of global revenue.

“Our mission is to reach people and touch lives by providing quality medicines across a patient’s entire treatment journey, from consumer health products to generics to innovative medicines,” said Rick Ascroft, North America CEO, Sun Pharma, who represented the company at the White House. “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 products manufacturing.”

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Sun Pharma ranks second in US dermatology by prescriptions, with key brands including Ilumya for plaque psoriasis and Winlevi for acne. Recent US launches include Leqselvi for severe alopecia areata and Unloxcyt for advanced cutaneous squamous cell carcinoma, strengthening its presence in dermatology and cutaneous oncology.