US signs MFN with Sun Pharma, 8 others

US President Donald J. Trump announced nine new agreements with pharmaceutical manufacturers including Sun Pharma to lower prescription drug prices in line with the lowest prices paid by other developed nations (known as the most-favored-nation, or MFN, price). The agreements bring the total number of pharmaceutical manufacturers with MFN deals to 26, covering 89 per cent of the branded drug market.

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In a statement, Sun Pharma said it also commits to MFN pricing for future innovative medicine launches.

The agreement recognizes Sun Pharma’s investment in the U.S. market by delaying Section 232 tariffs on innovative pharmaceutical products for over two years. Further terms of the agreements remain confidential, it said.

Other pharma companies include Alcon, Astellas Pharma, BeOne Medicines, BridgeBio, CSL, Kyowa Kirin, Teva Pharmaceuticals and UCB. The nine pharmaceutical manufacturers have also committed to invest at least USD19.6 billion collectively in U.S. manufacturing in the near term.

The agreements reduce prices on drugs that treat numerous costly, chronic, and even rare diseases, including hemophilia, Parkinson’s disease, macular degeneration, glaucoma, liver disease, skin conditions, and various forms of cancer, White House said in a statement.

The agreements will provide every State Medicaid program in the country access to MFN drug prices on products made by the nine companies.

As part of the MFN agreements, several companies are donating active pharmaceutical ingredients for key products to the Strategic Active Pharmaceutical Ingredients Reserve (SAPIR) to reduce reliance on foreign nations.

Sun Pharma will contribute 71.4 tons of clindamycin and 6.75 tons of doxycycline; both antibiotics to treat bacterial infections, to the SAPIR.

On May 12, 2025, Trump signed an Executive Order titled: “Delivering Most-Favored-Nation Prescription Drug Pricing to American Patients” directing the Administration to take numerous actions to bring American drug prices in line with those paid by similar nations.

The Administration now has agreements with Pfizer, Astra Zeneca, EMD Serono, Eli Lilly, Novo Nordisk, Amgen, Bristol Myers Squibb, Boehringer Ingelheim, Genentech, Gilead Sciences, GSK, Merck, Novartis, Sanofi, Johnson & Johnson, AbbVie, Regeneron, Alcon, Astellas Pharma, BeOne Medicines, BridgeBio, CSL, Kyowa Kirin, Sun Pharma, Teva Pharmaceuticals, and UCB.

The U.S. is Sun Pharma’s largest market for innovative medicines and a cornerstone of its long-term growth strategy, generating approximately 27 per cent of the company’s global revenue.

“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,” said Rick Ascroft, North America CEO, Sun Pharma, who represented the company 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.”

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