Seven Humira Biosimilars: Increased Competition In Arthritis Drug Market Sparks Need For Reform Of Drug Pricing Intermediaries

Seven pharmaceutical companies recently launched their biosimilars of AbbVie Inc's ABBV top-selling arthritis drug Humira. 

According to healthcare professionals, the introduction of more affordable alternatives to one of the U.S.s' most expensive and widely used arthritis treatments will likely increase calls for reforming the intermediaries that manage drug prices for the majority of insured Americans. 

Despite these new competitors, the prices of Humira and its biosimilars remain high, drawing attention to the complexity and dysfunction of the pharmaceutical supply chain, thus stimulating a need for reform in the current system.

The Biden administration has prioritized lowering drug prices and passed the Inflation Reduction Act, targeting pharmacy benefit managers (PBMs). 

Both lawmakers and the Federal Trade Commission (FTC) are investigating PBMs' role in escalating healthcare costs, and there are ongoing initiatives to compel them to make their business transactions public.

PBMs defend their role in controlling drug costs. Amgen Inc AMGN, which launched its biosimilar to Humira, argues that PBMs favor higher list prices for subsequent after-market discounts, which result in more favorable coverage for drugs. 

Amgen offered 5% and 55% discounts to AbbVie's $6,922 per month Humira price tag Reuters reported, and both were included on drug coverage lists at two large PBMs.

However, healthcare experts predict that meaningful consumer savings may still be years away under the current proposals.

Even with Express Scripts and Optum RX, including the higher and lower-priced biosimilars from Novartis AG's NVS Sandoz unit in their coverage this month, healthcare professionals predict that the current trend may persist.

The U.S. government spent around $9 billion on Humira in 2021. Democratic Senator Ron Wyden and Republican Senator Chuck Grassley are among those advocating for greater transparency in the PBM system.

Price Action: ABBV shares are up 0.04% at $141.68 premarket on the last check Wednesday.