Sun Pharmaceutical Industries has signed on to a set of pricing and access commitments with the United States government, agreeing to extend Most Favoured Nation pricing to state Medicaid programmes.
The Mumbai-headquartered drugmaker was among several pharmaceutical companies present at a White House ceremony on Monday where the agreements were formalised.
Sun Pharma’s MFN pricing agreement with the US government
Under the arrangement, Sun Pharma will apply Most Favoured Nation pricing to state Medicaid programmes. The company has also committed to MFN pricing for any innovative medicines it launches in the future.
In exchange, the agreement delays Section 232 tariffs on the company’s innovative pharmaceutical products in the US for more than two years. Sun Pharma said further terms of the arrangement remain confidential.
“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. 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. We are proud to play our part in delivering the medicines that millions of American patients count on every day.” Rick Ascroft, North America CEO of Sun Pharma, said.
Sun Pharma expands US presence across speciality medicines
Sun Pharma built its presence in the American market initially through generics before expanding into innovative and speciality drugs. As per the filing, the company now ranks second by prescriptions in US dermatology, according to the release, and has been widening its reach in immunology, cutaneous oncology and ophthalmology.
The US remains Sun Pharma’s largest market for innovative medicines. It accounts for roughly 27% of the company’s global revenue, the company said.
Sun Pharma’s $11.75-billion Organon acquisition
The pricing commitment comes months after Sun Pharma entered into a definitive agreement to acquire Organon & Co. at an enterprise value of $11.75 billion. The company described the deal as a reflection of its continued investment in American patients, healthcare providers and communities.
About Sun Pharma
Sun Pharma is one of India’s largest pharmaceutical companies by revenue and a leading generic drugmaker in the US and other emerging markets. Its Global Innovative Medicines portfolio, spanning dermatology, ophthalmology and onco-dermatology, contributes about 22% of overall company sales. The company operates manufacturing facilities across five continents and sells its products in more than 100 countries, the filing mentioned.
Sun Pharma share price performance
Sun Pharma’s share price was down 0.69% as of the market opening on September 1. The company’s share price has been up 0.31% in the past month. Sun Pharma’s share price has been up 25.12% in the past year.