Sun Pharmaceutical Industries has announced it has entered into an agreement with the US government to prioritise access to affordable medicines for American patients.
It was signed during a ceremony at the White House.
According to the deal, Sun Pharma will extend 'Most Favoured Nation' (MFN) pricing to state Medicaid programmes.
The commitment to MFN pricing will also apply to Sun Pharma's future innovative medicine launches in the US market, the company said in a regulatory filing.
MFN pricing generally ensures that a buyer receives the lowest price available for a drug.
The agreement, which was signed alongside several other pharmaceutical companies, recognises Sun Pharma's investment in the US by delaying Section 232 tariffs on its innovative pharmaceutical products for over two years. The company did not disclose other terms of the deal.
“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,” said Rick Ascroft, North America CEO, Sun Pharma, who represented the company at the White House.
The US currently stands as Sun Pharma’s largest market for innovative medicines, contributing about 27% of the company's total global revenue.
Earlier this year, Sun Pharma entered into a definitive agreement to acquire Organon at an enterprise value of USD 11.75 billion.
Sun Pharma currently ranks second by prescriptions in the US dermatology segment. They are also prominent in other segments like immunology, cutaneous oncology, and ophthalmology.
It also said that its global innovative medicines portfolio now accounts for about 22% of total company sales.
