CVS Health will begin manufacturing cheaper 'biosimilar' drugs
The products will be 'highly similar to' existing FDA-approved medications.
CVS Health is launching a new subsidiary unit, Cordavis, that will collaborate with drug manufacturers to produce biosimilar products, or medications that are near identical to an already approved and existing drug. This unit will commercialize and co-produce FDA-approved biosimilar products to U.S. markets, which will likely have a trickle-down effect on the way consumers buy drugs by increasing competition and driving down prices.
This subsidiary will not reinvent the wheel with new drugs. All the biosimilar products produced will be highly similar to an already approved biologic medicine but will still undergo testing and approvals to ensure they are highly comparable in terms of safety, efficacy and quality. If generic drugs are the Kirkland brand of medication — an identical product made cheaper through the expiration of a patent — biosimilars are more like Amazon Basics: less expensive, legally distinct but functionally the same as what they imitate. CVS claims that Cordavis will "help ensure consistent long-term supply of affordable biosimilars" when it officially debuts at the beginning of 2024.
The first confirmed offering from Cordavis in the near future is Hyrimo, a biosimilar of the drug Humira. Humira is an injectable drug that is used to treat a range of diseases, including Crohn's and rheumatoid arthritis in adults. The drug is a popular prescription that generated its maker AbbVie net revenues of $3.5 billion in global sales in the second quarter of 2023. It has a list price of nearly $7,000 a month, making it a prime drug worth diluting in the competitive pharmaceutical landscape. Cordavis says its biosimilar for Humira will list under a new private label and will be 80 percent cheaper than the current list price of the drug. This early offering gives just a snapshot of the kind of influence Cordavis can have on disruption in the drug manufacturing space.
