The most-favoured-nation policy demands companies reduce Medicaid rates, increase the costs of their drugs overseas and promise to match the foreign prices for future drugs to what they cost in the US and set up discounted direct-to-consumer sales for some widely used medications.
This will offer steep discounts to patients while selling directly. In lieu, Pfizer will receive a three-year relief from any tariffs.
Share of Medicaid spending in the US is around 8% to 10%, as per analysts.This puts Sun Pharma shares in focus as it has a specialty portfolio, which is 19% of its sales. As per analysts, the read through for Sun Pharma is positive.
Analysts are of the view that a large part of the reduction in the list price offered by Pfizer may be attributable to rebates and hence there is unlikely to be any negative impact on their net earnings.
Sun Pharma shares are trading 2.1% higher at ₹1,627.9 apiece. The stock had declined to its 52-week low of 1,548 apiece last week, after the Trump announced 100% tariff on branded and patented drugs being imported in the US, which have taken effect from today.
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