Why Sun Pharma's stock is up today
Sun Pharma's stock climbed 2.1% to ₹1,627.9 on Wednesday, October 1, after Pfizer reached a deal with the US government to align Medicaid drug prices with the lowest rates globally and secured three years of tariff relief.
Medicaid changes ripple effect
Medicaid makes up about 8-10% of US drug spending—so changes here ripple out fast.
For Sun Pharma, whose specialty drugs bring in nearly a fifth of its revenue, less regulatory uncertainty and more predictable pricing are good news.
Analysts say most price cuts will come as rebates, so earnings shouldn't take a big hit—helping Sun Pharma and other exporters breathe easier about selling in the US.
Deal brings clarity amid tariff confusion
This deal clears up confusion around US pricing rules just as new tariffs kicked in this week.
With discounted direct sales and tariff relief for Pfizer setting the tone, Indian pharma players like Sun can now plan ahead with more confidence.