Cheaper Version Of Blockbuster Arthritis Treatment Humira - CVS Health Teams With Sandoz

CVS Health Corp CVS has launched Cordavis, a wholly-owned subsidiary, to work directly with manufacturers to commercialize and/or co-produce biosimilar products in the U.S. pharmaceutical market.

What are biosimilars? These are FDA-approved biologic medications that are nearly identical to and have no clinically significant differences from previously approved biologic medicines by the FDA. 

These products can offer a cheaper yet equally effective alternative to branded biologics.

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

The growth projections for the biosimilar market in the U.S. are astounding, with an expected increase from less than $10 billion in 2022 to over $100 billion by 2029.

Cordavis has contracted with Sandoz to commercialize and bring Hyrimoz (adalimumab-adaz), a biosimilar for AbbVie Inc's ABBV flagship product Humira, under its private label. 

Sandoz, currently a unit of Novartis AG NVS, is expected to be spun off as an independent publicly traded firm later this year.

The list price for Cordavis Hyrimoz is set to be more than 80% lower than that of Humira, a rheumatoid arthritis treatment. The product is expected to launch in the first quarter of 2024.

Shawn Guertin, Chief Financial Officer at CVS Health, said, "Cordavis is a logical evolution for us and will help ensure sufficient supply of biosimilars in the U.S. and support this market now and in the future, while ultimately improving health outcomes and reducing costs for consumers," Guertin stated.

Price Action: CVS shares are up 0.95% at $67.03 on the last check Thursday.