CVS Health has launched a new segment that aims to work with drugmakers to bring additional biosimilars to market.
The new, wholly owned subsidiary, called Cordavis, aims to develop a biosimilar portfolio with the goal of expanding access to these drugs across the country. Increased uptake of biosimilars can drive down costs of pricey brand drugs that otherwise lack market competition, CVS said.
CVS said the biosimilar market is estimated 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, CVS' chief pharmacy officer and co-president of the pharmacy and consumer wellness segment, in the release. “Through our direct involvement, we will expand the supply chain and ensure biosimilar availability in the market."
"We have assembled a talented team at Cordavis and look forward to the value this business will deliver to patients and payers," Shah added.
The products released by Cordavis will be approved by the Food and Drug Administration and developed with a focus on quality and ease of use for patients, making sure there's a consistent supply of affordable biosimilars available, CVS said.
Cordavis is teaming with Sandoz on its first product and will work to commercialize and bring to market its Hyrimoz drug, which is a biosimilar for Humira. The company plans to launch the drug under a Cordavis private label in the first quarter of 2024.
Humira is the pharmacy benefit management industry's golden goose when it comes to the potential for biosimilars, as it alone accounts for $20 billion in sales each year. CVS said Hyrimoz's list price will be 80% lower than Humira's.
“CVS Health has a history of bringing innovative solutions to the market that lower the cost of drugs and ensure people have access to the medications they need to stay healthy,” said Shawn Guertin, CVS Health's chief financial officer, in the release. “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.”