Mumbai, September 1: Shares of Sun Pharmaceutical Industries Limited dropped over 2% in early trades on Tuesday after the company committed to offer affordable medicines to the US government’s healthcare programs at an event at the White House earlier in the day.
Under the agreement, Sun Pharma joins nine other drugmakers to extend Most-Favored-Nation (MFN) pricing to US state Medicaid programs, ensuring that prices match the lowest rates charged for life saving medications. This will come in exchange of the US’s commitment to delay Section 232 tariffs for innovative pharmaceutical products for over two years, the company said in an exchange filing.
“Our mission is to reach people and touch lives by providing quality medicines across a patient’s entire treatment journey, from consumer health products to generics to innovative medicines,” Rick Ascroft, North America CEO, Sun Pharma, stated, who was also present at the ceremony at the White House.
“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. We are proud to play our part in delivering the medicines that millions of American patients count on every day,” he added.
This development has come as a breather for Sun Pharma, which would have otherwise had to face up to 200% tariffs on generic drugs imported to the country as the US aims to ‘reshore’ jobs in the pharmaceutical sector.
The US remains Sun Pharma largest market, accounting for almost 27% of its total global revenues. The company was recently in the news after it acquired generic maker Organon & Co for $11.75 billion, making it one of the world’s top pharmaceutical companies.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investing in stocks includes financial risks, and past performance is not indicative of future results. Readers should conduct their own research or consult with a qualified financial advisor before making any investment decisions.
