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Sun Pharma Shares In Focus: US MFN Deal Eases Tariff Risk, Says ICICI Securities — Check Target Price

While Sun Pharma's specialty portfolio is now safeguarded from tariffs, the same safeguard must be extended to Organon post-acquisition, adds the brokerage.

Sun Pharma Shares In Focus: US MFN Deal Eases Tariff Risk, Says ICICI Securities — Check Target Price
Sun Pharmaceutical Industries Ltd. has entered into a Most Favoured Nation (MFN) pricing agreement with the US government, along with eight other pharmaceutical companies under which Sun will extend MFN pricing to state Medicaid programmes for existing and future launches
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Sun Pharmaceutical Industries Ltd.
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ICICI Securities Report

Sun Pharmaceutical Industries Ltd. has entered into a Most Favoured Nation (MFN) pricing agreement with the US government, along with eight other pharmaceutical companies under which Sun will extend MFN pricing to state Medicaid programmes for existing and future launches, which according to the brokerage eliminates uncertainties on US tariffs.

Owing to this, the US government will delay a potential Section 232 tariff investigation on Sun's innovative pharmaceutical products for over two years.

The US accounts for ~70% of Sun's innovative sales ($1 billion in FY26), and four out of its eight key innovative brands are also sold in markets outside the US.

ALSO READ: Auto Stocks In Focus: Bajaj Auto, Eicher Motors Among ICICI Securities' Top Picks After August Sales Data

Sun Pharma's exposure to Medicaid programmes is likely less than 5%, in brokerage's opinion, which may limit the impact of direct price cuts.

While Sun Pharma's specialty portfolio is now safeguarded from tariffs, the same safeguard must be extended to Organon post-acquisition, adds the brokerage.

Click on the attachment to read the full report:

Isec Sun Pharma.pdf
VIEW DOCUMENT

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