Melt butter in a medium saucepan over medium heat. Add pepperoni and onion and cook, stirring, until onion is soft, 3 to 5 minutes. Add garlic and sauté until fragrant, about 1 minute longer.
Add wine and cook, stirring, until almost evaporated, 2 to 3 minutes. Stir in tomatoes and sugar, bring to a boil, reduce heat and simmer until slightly thickened, 15 to 20 minutes. Stir in heavy cream. Season with salt.
While sauce is cooking, bring a large pot of salted water to boil. Add rigatoni and cook until just tender, about 10 minutes or as package label directs. Combine with sauce and basil and serve.