CVS Health (NYSE:CVS) is partnering with drugmaker Sandoz to produce a near identical version of the blockbuster arthritis treatment Humira that will sell for 80% below the price of the brand-named drug.
The move is part of the company’s new venture focused on securing, and in some cases co-producing, biosimilar drugs, which are the equivalent of generic versions of complex gene or protein-based therapies known as biologics.
“We’ve invested in committing to certain volumes for the U.S. marketplace so that we have a durable supply of product. We want to ensure that once we bring this into the U.S. marketplace, we don’t have any supply issues, we have a high-quality biosimilar product available, and it’ll be launched at a much lower ... price than the originator molecule that exists,” said Prem Shah, CVS Health EVP and chief of pharmacy.
CVS is already one of the leading players when it comes to sourcing generic drugs through Red Oak, its joint venture with Cardinal Health (NYSE:CAH). But it’s looking to strengthen its foothold in the biosimilars market, which is expected to grow to $100 billion over the next six years.
The company said Wednesday it’s launching a new subsidiary called Cordavis, which will specialize in securing supply of the new biosimilar drugs and will partner with Novartis Pharmaceuticals’ (NYSE:NVS) generic manufacturing unit, Sandoz.
Sandoz, currently a unit of Novartis, is expected to be spun off as an independent publicly traded firm later this year.
CVS shares picked up 22 cents to $66.62.
