CVS Health Launches Company To Produce Cheaper ‘Biosimilar’ Versions Of Expensive Biotech Drugs

CVS Health is launching a new company that will work directly with drug makers to produce and commercialize “biosimilar” drugs, the less expensive versions of expensive brand prescriptions derived from biotechnology.

The new of the new company, Cordavis, will operate as “a wholly owned subsidiary that will work directly with manufacturers to commercialize and/or co-produce biosimilar products,” CVS said.

Biosimilars are versions of biologic medicines approved by the U.S. Food and Drug Adminstration that are “highly similar to” and have “no clinically meaningful differences from” brand biologic medicines already on the market, CVS said.

“The Cordavis products will be FDA approved, high quality, and easy for patients to use and will help ensure consistent long-term supply of affordable biosimilars,” CVS said in a statement released Wednesday afternoon.

Humira, approved by the U.S. Food and Drug Administration 20 years ago, has for years now been one of the nation’s most costly drugs generating more than $20 billion in sales for its maker, Abbvie in 2021 alone.