CVS Health has launched a new wholly-owned subsidiary to bring high-quality “biosimilar” products to the market derived from biotechnology, with the goal of reducing prescription drug spend, the company said in a release.
The new company, Cordavis, will start with a launch of biosimilar Hyrimoz with Sandoz beginning in 2024 with an almost 80% lower list price than Humira.
Humira was approved by the U.S. Food and Drug Administration 20 years ago and has been one of the nation’s most costly drugs, generating more than $20 billion in sales for its maker, Abbvie, in 2021 alone, reported Forbes.
Cordavis will work directly with manufacturers to commercialize and/or co-product biosimilar products for the U.S. pharmaceutical, which means they are FDA-approved biologic medications that are highly similar to and have no clinically meaningful differences from, a biologic medicine already approved by the FDA.
Forbes also reported that taxpayers, government health insurers, and companies are spending more on expensive specialized prescription drugs. Last year, for example, specialty prescription spending for U.S. employers was 49% of total pharmacy costs, according to the big benefit consultancy Mercer.
As the U.S. pharmaceutical environment continues to evolve, biosimilars represent one of the biggest opportunities for reducing drug costs for employers and consumers, CVS said.
“Through Cordavis, CVS Health intends to develop a portfolio of products that it expects will facilitate broader access to biosimilars in the U.S. – creating more competition that drives down prices – while encouraging investment in future products,” the company said in a statement.
CVS added that the biosimilars market in the U.S. is projected to grow from less than $10 billion in 2022 to more than $100 billion by 2029.
“Biosimilars are crucial to creating competition and reducing costs for specialty pharmaceuticals where drug prices are rising the fastest,” said Prem Shah, chief pharmacy officer and co-president of the pharmacy and consumer wellness segment. “Through our direct involvement, we will expand the supply chain and ensure biosimilar availability in the market.”
