Sun Pharma Inks Deal With US Govt To Supply Cheaper Medicines, Secures Tariff Delay

Sun Pharmaceutical Industries has reportedly signed an agreement with the US government to extend cheaper medicines to American patients. The Mumbai-based company agreed to extend 'Most Favoured Nation' pricing to state Medicaid programmes in the United States. Under MFN pricing, a buyer can access the lowest possible price for a medicine. The US government has delayed the imposition of Section 232 tariffs on Sun Pharma's innovative products by more than two years, and the deal acknowledges the company's investment in the country.

In a regulatory filing on Tuesday, Sun Pharma said the MFN pricing arrangement will also apply to future innovative medicine launches in the US market. The company did not provide any further details of the pact.

White House Announcement

The White House hosted the formal declaration. On August 31, 2026, US President Donald Trump met Richard Ascroft, CEO North America of Sun Pharma, at an event on Healthcare Affordability in Washington, DC's Oval Office, AFP reported.

Ascroft represented Sun Pharma at the White House. He told AFP that the United States was a crucial area of investment and expansion across clinical development, sales and marketing, and both Active Pharmaceutical Ingredient (API) and finished products manufacturing.

Sun Pharma's US Growth

The US is now Sun Pharma’s biggest market for innovative medicines. It contributes about 27 per cent of the company’s total global revenue.

Sun Pharma has been expanding its presence in the West. Earlier this year, the company signed a definitive deal to acquire Organon & Co. at an enterprise value of USD 11.75 billion.

Sun Pharma ranks second in US dermatology prescriptions. The drugmaker is also branching out into immunology, cutaneous oncology and ophthalmology. Worldwide sales of its innovative medicines now generate nearly 22 per cent of total revenue, the company stated.

Drug Deals Context

The Sun Pharma agreement was one of more than 20 drug-pricing deals signed with pharmaceutical companies. The United States has struck such deals in a bid to cut prescription costs.

Drug prices in the US are often nearly three times higher than those paid by patients in other developed countries, Reuters reported.

Shares of Sun Pharmaceutical Industries were trading 0.60 per cent lower at 1,944.25 on the BSE on Tuesday.