(AOF) – CVS Health is expected to break even in pre-market on Wall Street after announcing today the launch of Cordavis, a subsidiary that will work directly with manufacturers to commercialize and/or co-produce biosimilar products for the US pharmaceutical market. For its first product, Cordavis has entered into an agreement with Sandoz to commercialize Hyrimoz, a biosimilar of Humira, in the first quarter of 2024 for a list price more than 80% below the current list price of Humira.
“CVS Health has a tradition of providing innovative solutions that lower the cost of medications and ensure patients have access to the medications they need to stay healthy,” said Shawn Guertin, Chief Financial Officer of CVS Health. “Cordavis is a logical next step for us and will help ensure an adequate supply of biosimilars in the United States and support this market, while improving health outcomes and reducing costs for consumers.”
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Biotechs put to the test
These companies are suffering from a much less favorable economic cycle, which is reflected in particular by a drop in financing by venture capital for start-ups. These companies are therefore obliged to carry out redundancy plans. Added to this is a much more restrictive regulatory framework. First, in the United States, the measures linked to the Inflation Reduction Act (IRA) could have a strong impact on the margins of the participants. Indeed, from 2026, the federal Medicare program will be able to renegotiate the price of drugs marketed for nine years (chemicals) or 13 years (biologicals), with discounts that could range from 35 to 60% for biotechs. Similarly, in Europe, with the new drug regulations presented in Brussels in April, the duration of patent protection will be reduced if the innovative treatment is not marketed in all member countries within two years.