India Pharma Outlook Team | Tuesday, 01 September 2026
The push to lower drug prices in America has gained momentum as Sun Pharma joins eight pharmaceutical companies in a new US pricing deal.
The agreement could reshape drug prices in America by linking US prescription costs to the lowest prices paid in other developed countries.
US President Donald Trump announced the agreements on August 31. The latest deals bring the total number of pharmaceutical manufacturers with Most Favored Nation (MFN) agreements to 26.
These companies together cover about 89 percent of the branded drug market, according to the White House. The agreements cover medicines used for several costly chronic and rare diseases.
These include cancer, hemophilia, Parkinson’s disease, glaucoma, macular degeneration, liver disease, and skin conditions.
The nine companies included in the latest agreements are:
Under the agreements, all US state Medicaid programs will gain access to MFN prices for products made by these companies. The White House expects the agreements to generate billions of dollars in savings for Americans. The companies will also provide MFN pricing for new innovative medicines launched in the US.
The policy seeks to prevent foreign markets from receiving lower prices while American patients pay more. The nine manufacturers have also committed at least USD 19.6 billion toward US manufacturing in the near term.
Sun Pharma will have an additional role under its agreement with the Trump administration.
The company will supply active pharmaceutical ingredients (APIs) to the US Strategic Active Pharmaceutical Ingredients Reserve.
Sun Pharma will contribute:
Both antibiotics are used to treat bacterial infections.
The reserve aims to reduce US dependence on overseas suppliers. It will also help maintain supplies of critical medicines during emergencies. Other companies have also committed to supplying medicines or APIs to the reserve.
UCB will provide 163 tonnes of levetiracetam. Teva will contribute 45 tonnes of metronidazole and 4.8 tonnes of amlodipine. Astellas will add 25 kg of tacrolimus. The drug helps prevent organ rejection after transplants.
The latest agreements are part of Trump’s broader effort to reduce prescription drug costs. Trump signed an executive order in May 2025 directing his administration to pursue MFN prescription drug pricing.
He later contacted 17 major pharmaceutical companies and demanded action to bring US prices closer to those in other developed countries. Pfizer became the first company to reach an MFN agreement with the administration in September 2025.
Other companies that later reached agreements include Eli Lilly, Novo Nordisk, Amgen, Bristol Myers Squibb, Merck, Novartis, Sanofi, Johnson & Johnson, AbbVie, and Regeneron. The administration also launched TrumpRx.gov in February 2026. The platform offers discounts on several high-priced medicines.
The White House says patients have saved more than USD 700 million through the program. The Council of Economic Advisers estimates that MFN agreements could generate USD 600 billion in savings over the next decade. For Sun Pharma, the latest deal strengthens its position in the US market. It also connects its pricing commitments with efforts to strengthen the American pharmaceutical supply chain.
The agreement marks another major step in the US effort to reduce drug costs. For Sun Pharma, it creates both pricing commitments and a larger role in the US medicine supply chain. As more companies join the initiative, its impact on drug prices in America could become clearer in the coming years.
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