Sun Pharma stock: Sun Pharma has joined the US White House’s latest agreements aimed at lowering prescription drug prices for Americans, agreeing to extend Most Favored Nation (MFN) pricing to state Medicaid programmes and future innovative drug launches.
As part of the agreement, Sun Pharma will also receive a two-year delay on Section 232 tariffs for innovative pharmaceutical products.
The agreement was announced by US President Donald J. Trump on August 31 as part of a broader package involving nine additional pharmaceutical manufacturers. With these agreements, the total number of pharmaceutical manufacturers with MFN deals has reached 26, covering 89 per cent of the branded drug market.
Sun Pharma agrees to MFN pricing
Under the agreement, Sun Pharma will provide MFN drug prices to every state Medicaid programme in the US. The administration said this will give Medicaid programmes access to lower prices on medicines manufactured by the participating companies.
The deal also covers future innovative medicines launched by the nine pharmaceutical manufacturers. According to the White House, the agreements are intended to ensure that foreign countries do not benefit from lower drug prices while American patients pay more for innovative medicines.
Sun Pharma is among the nine companies included in the latest agreements, alongside Alcon, Astellas Pharma, BeOne Medicines, BridgeBio, CSL, Kyowa Kirin, Teva Pharmaceuticals and UCB.
Two-year delay on Section 232 tariffs
As part of the agreement, Sun Pharma has secured a two-year delay on Section 232 tariffs for innovative pharmaceutical products.
The announcement comes as the US administration seeks to encourage pharmaceutical manufacturing and strengthen domestic drug supply chains while bringing US drug prices closer to those paid in other developed countries.
The nine companies covered by the latest agreements have collectively committed to invest at least $19.6 billion in US manufacturing in the near term, according to the White House fact sheet.
Sun Pharma to contribute antibiotics to strategic reserve
Sun Pharma has also committed active pharmaceutical ingredients to the Strategic Active Pharmaceutical Ingredients Reserve (SAPIR).
The company will contribute 71.4 tonnes of clindamycin and 6.75 tonnes of doxycycline to the reserve. Both are antibiotics used to treat bacterial infections.
The initiative is aimed at reducing reliance on foreign nations and ensuring adequate supplies of key pharmaceutical ingredients in the event of an emergency.
Other companies participating in the latest agreements have also committed supplies to the reserve. UCB will contribute 163 tonnes of levetiracetam, while Teva Pharmaceuticals will contribute 45 tonnes of metronidazole and 4.8 tonnes of amlodipine. Astellas will contribute 25 kg of tacrolimus.
White House says MFN deals will cut drug costs
The latest agreements cover medicines used to treat a range of costly chronic and rare diseases, including hemophilia, Parkinson’s disease, macular degeneration, glaucoma, liver disease, skin conditions and various forms of cancer.
The White House said the agreements will provide every state Medicaid programme with access to MFN drug prices on products made by the nine companies, resulting in billions of dollars in savings for Americans.
The Council of Economic Advisers estimates that the total savings from President Trump’s MFN deals could reach $600 billion over the next decade.
Sun Pharma among 26 companies with MFN deals
The latest additions are Alcon, Astellas Pharma, BeOne Medicines, BridgeBio, CSL, Kyowa Kirin, Sun Pharma, Teva Pharmaceuticals and UCB.
The White House said these agreements are part of the administration’s broader push to bring US prescription drug prices in line with the lowest prices paid by other developed nations.
Trump administration’s MFN push
On July 31, 2025, Trump sent letters to 17 leading pharmaceutical manufacturers outlining steps to reduce prescription drug prices in the US. The first MFN agreement was announced with Pfizer on September 30, 2025.
The administration subsequently announced additional agreements and launched TrumpRx.gov on February 5, 2026, allowing patients to access discounts on several medicines.
According to the White House, patients have saved more than $700 million on medicines through TrumpRx since its February launch.
The administration is now also calling on Congress to enact the Great Healthcare Plan, which it says will aim to lower drug prices, reduce insurance premiums, increase accountability for insurance companies and improve price transparency.
