(CTN News) – It has been announced that CVS Health is getting into the biosimilars business by launching a subsidiary called Cordavis.
Cordavis, which will be a subsidiary of CVS Health, will initially work with Sandoz to produce a low-cost version of the blockbuster arthritis drug Humira, which has enjoyed enormous success.
This is important because CVS already sources generic drugs through its partnership with Cardinal Health, and it is also working to expand its presence in a biosimilars market that is expected to be worth $100 billion by the end of this decade.
It is important to note that Humira – which has a list price that exceeds $6,000 – lost its patent protection in July of this year, providing multiple biosimilar competitors the opportunity to compete with it.
According to Reuters, the price of this product has not changed significantly since it was released two years ago.
The company said Wednesday that Cordavis, which is scheduled to be released in the first quarter of 2024, will have a list price that is more than 80% lower than the current price of Humira.
“Cordavis is a logical evolution for CVS Health and will help ensure that there is sufficient supply of biosimilars in the U.S. and will support this market now and in the future,” said Shawn Guertin, CVS Health’s chief financial officer.
It is estimated that the biosimilars market will reach $27.2 billion this year and it will reach $76.2 billion by 2030, according to a report by Grand View Research.
It is expected that this market will reach $100 billion by the year 2029, according to CVS.
What they’re saying: “CVS appears to be targeting a big opportunity with this new business,” Julie Utterback, senior equity analyst for Morningstar Research Services, told Axios.
She noted that there are still a number of unknowns, such as how drugmakers will respond to direct competition from pharmacy benefit managers.
There are three PBMs in the United States that act as intermediaries between insurers and drug manufacturers to which CVS Caremark belongs. The Federal Trade Commission and Congress are increasingly focusing their attention on the role they play in drug pricing in the United States.