Mumbai, 2 September

Sun Pharmaceutical Industries on Tuesday announced it has entered into an agreement with the US government to prioritise access to affordable medicines for American patients.

As part of the agreement, signed during a ceremony at the White House, Mumbai-based Sun Pharma, India's largest drugmaker, will extend 'Most Favoured Nation' (MFN) pricing to state Medicaid programmes, the company said in a regulatory filing on Tuesday.

The commitment to MFN pricing will also apply to Sun Pharma's future innovative medicine launches in the US market, the filing said.

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.

The company has been expanding its footprint in the region. Earlier this year, Sun Pharma entered into a definitive agreement to acquire Organon & Co. at an enterprise value of $11.75 billion.

Sun Pharma currently ranks second by prescriptions in the US dermatology segment and is expanding into immunology, cutaneous oncology, and ophthalmology, it said in the filing, adding that its global innovative medicines portfolio now accounts for about 22% of total company sales.

Shares of Sun Pharmaceutical Industries Ltd were trading 0.60% down at ₹1,944.25 on the BSE on Tuesday.