India’s largest drugmaker Sun Pharmaceutical Industries has entered into an agreement with the US government to provide “Most Favoured Nation” pricing to state Medicaid programmes, helping expand access to affordable medicines in America.

 India’s largest pharmaceutical company Sun Pharmaceutical Industries has signed an agreement with the US government to supply medicines at more affordable prices to American patients.

Under the agreement, the Mumbai-based company will provide “Most Favoured Nation” (MFN) pricing to state Medicaid programmes in the United States. MFN pricing allows buyers to access the lowest available price for a medicine.

MFN pricing to cover future medicines

Sun Pharma said in a regulatory filing that the MFN pricing arrangement will also apply to the company’s future innovative medicine launches in the US market.

The agreement is aimed at improving affordability of medicines for patients covered under US Medicaid programmes, while strengthening Sun Pharma’s presence in the American healthcare market.

US delays tariff action on Sun Pharma products

As part of the agreement, the US government has delayed the implementation of tariffs under Section 232 on Sun Pharma’s innovative products by more than two years.

The move acknowledges the company’s investments in the United States, although further details of the agreement have not been disclosed.

US remains key growth market

Sun Pharma’s North America CEO Rick Ascroft said the United States remains an important area of investment and expansion for the company.

He highlighted the company’s focus on clinical development, sales and marketing, as well as manufacturing of active pharmaceutical ingredients (APIs) and finished products in the US market.

The agreement marks another step in strengthening pharmaceutical cooperation between India and the United States, with affordability and access to medicines emerging as key areas of focus.