CVS Health is making waves in the pharmaceutical industry with the creation of a new subsidiary called Cordavis. In collaboration with various drug manufacturers, Cordavis will be focused on developing biosimilar products, medications that closely resemble pre-existing, FDA-approved drugs. The introduction of these biosimilars to U.S. markets will likely shake things up, fostering competition and resulting in lower drug prices for consumers.
Cordavis isn’t looking to innovate new drugs from scratch. Rather, the biosimilars it produces will closely mirror already approved biologic medicines, but will also undergo rigorous testing to ensure they match in safety, efficacy, and quality. Imagine generic drugs as the Kirkland brand of medication—a budget-friendly version made available through the expiration of a patent. Biosimilars, on the other hand, could be likened to Amazon Basics: they are more affordable and legally unique, yet function just as effectively as the products they replicate. CVS is confident that Cordavis will be a stable source of budget-friendly biosimilars and plans to officially launch the unit at the onset of 2024.
One exciting revelation from Cordavis is the upcoming release of Hyrimo, a biosimilar to the widely-used drug Humira. This injectable medication, renowned for treating diseases such as Crohn’s and rheumatoid arthritis in adults, had an impressive $3.5 billion in global sales for its maker, AbbVie, during Q2 of 2023. With a hefty price tag of nearly $7,000 a month, Humira stands as a prime target for some healthy competition in the marketplace. Cordavis has announced that its Hyrimo will be sold under a new private label at a price that’s 80 percent more budget-friendly than Humira. This preliminary venture is just a glimpse into the potentially game-changing influence Cordavis could exert in the pharmaceutical industry.
So, if you ever wished that your medicine cabinet could get the Amazon Basics treatment, CVS is here to make that dream come true. Hold on to your prescription bottles, folks, because Cordavis is set to disrupt the way we buy drugs, without reinventing the wheel, or in this case, the pill.