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CVS Health (NYSE: CVS) has launched a business called Cordavis to work directly with manufacturers to commercialize and co-produce biosimilars.
A biosimilar is an FDA-approved medication that is highly similar to a biologic medicine already approved by the agency. The products represent an opportunity to reduce drug costs for employers and consumers.
The Woonsocket-based CVS said Wednesday it will start by working with Sandoz to commercialize and bring to market Hyrimoz. CVS said the drug will sell at an 80% lower list price than Humira (adalimumab) which is used to treat rheumatoid arthritis and other inflammatory conditions. The private-label Cordavis Hyrimoz is expected to be available in the first quarter of 2024.
Cordavis intends to develop a portfolio of biosimilar products. CVS said its efforts will facilitate broader access to pharmaceuticals, create competition to drive down prices, and encourage investment in future products.
Cordavis will be a wholly-owned business of CVS Health, which has a $85 billion market cap.
“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 CFO Shawn Guertin. “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.”
“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 CVS's pharmacy and consumer wellness segment. “Through our direct involvement, we will expand the supply chain and ensure biosimilar availability in the market.
The biosimilars market in the U.S. is projected to grow from $10 billion in 2022 to around $100 billion by 2029, CVS said.
"We have assembled a talented team at Cordavis and look forward to the value this business will deliver to patients and payors," said Shah.
