CVS Health has taken a decisive step in the realm of US biosimilars by introducing Cordavis, a novel business unit dedicated to collaborating with pharmaceutical manufacturers to introduce private-label biosimilar therapies to the market.
This strategic move seeks to transform drug pricing dynamics and enhance patient access to cost-effective medications.
Collaboration and Inaugural Product
Cordavis has already formed a partnership with Sandoz for its inaugural product, a biosimilar version of AbbVie’s Humira (adalimumab), recently granted approval as Hyrimoz. A rebranded version of this biosimilar is slated for a Cordavis-label launch in early 2024, offering a remarkable 80% discount compared to the original brand’s list price.
Prem Shah, Chief Pharmacy Officer at CVS Health, underscores Cordavis’s pivotal role in introducing high-quality biosimilars into the market. The overarching objectives encompass reducing exorbitant drug expenditures and ensuring equitable access to affordable medications. Shah emphasizes that biosimilars play a vital role in fostering competition and curbing costs, particularly within the realm of specialty pharmaceuticals characterized by escalating prices.
Diverse Therapeutic Portfolio
Cordavis’s overarching vision encompasses a comprehensive range of biosimilar therapies. The company plans to engage in various aspects of the biosimilars supply chain, including manufacturing in some instances through external partners and commercial distribution. In cases like Hyrimoz, CVS will procure the product from Sandoz.
The anticipated growth trajectory of the biosimilars market is substantial. CVS Health cites figures from Fortune Business Insights, projecting an escalation from under $10 billion in 2022 to over $100 billion by 2029 in the US biosimilars market.
Disruption and Transformation
Cordavis’s establishment is a manifestation of the ongoing evolution within the US biosimilars market. A significant focal point of activity revolves around Humira, attributed to its broad therapeutic utility and remarkable sales, reaching a staggering $21 billion last year before the entry of biosimilar competitors.
While the initial wave of biosimilar products often maintained relatively high price points, Cordavis is poised to catalyze change by offering compelling discounts. This move is aligned with CVS Health’s historical commitment to introducing innovative solutions to lower drug costs and improve accessibility.
Future Outlook and Healthcare Transformation
Shawn Guertin, CVS Health’s Chief Financial Officer, views Cordavis as a logical progression in the organization’s mission to revolutionize the healthcare landscape. By ensuring the robust supply of biosimilars within the US market, Cordavis aims to bolster the present and future biosimilars market, while concurrently enhancing health outcomes and decreasing healthcare costs for consumers.
As CVS restructures and forges ahead with its vision, Cordavis holds the potential to not only disrupt the biosimilars market but also pave the way for a more equitable and accessible healthcare landscape.