Sun Pharma Signs US Drug Pricing Deal
Sun Pharmaceutical Industries has signed an agreement with the US government to provide lower-priced medicines under America’s Most-Favoured-Nation drug pricing programme. The deal will give state Medicaid programmes access to prices aligned with those paid in other developed countries.
Sun Pharma Joins US Drug Pricing Programme
Under the agreement, Sun Pharma will provide Most-Favoured-Nation pricing for medicines supplied through Medicaid programmes across the United States.
The pricing commitment will also extend to innovative medicines that Sun Pharma launches in the US in the future. The policy aims to reduce the gap between prescription drug prices in America and comparable developed markets.
Sun Pharma is among nine pharmaceutical manufacturers joining the latest round of agreements, taking the total number of participating companies to 26.
US Delays Tariffs on Sun Pharma Products
The agreement also provides Sun Pharma with important trade benefits. Planned Section 232 tariffs on the company’s innovative pharmaceutical products have been delayed by more than two years, recognising its investment and manufacturing commitments in the United States.
The US is Sun Pharma’s largest market for innovative medicines and accounts for approximately 27% of its global revenue.
The company has continued expanding its American operations across clinical development, manufacturing, sales and marketing.
Sun Pharma to Supply Antibiotics for US Reserve
Sun Pharma will also contribute pharmaceutical ingredients to the US Strategic Active Pharmaceutical Ingredients Reserve.
The company has committed 71.4 tonnes of clindamycin and 6.75 tonnes of doxycycline, both widely used antibiotics for bacterial infections.
The broader group of nine pharmaceutical companies has collectively committed at least $19.6 billion in near-term US manufacturing investment.
