CVS Health Enters Biosimilars Market With New Subsidiary Cordavis

CVS Health has launched Cordavis, a new subsidiary focused on bringing high-quality biosimilar products to the market to reduce drug costs.

Biosimilars are FDA-approved biologic medications that are highly similar to already approved biologic medicines, CVS Health said in a Wednesday (Aug. 23) press release. These biosimilars can reduce drug costs for consumers.

The primary goal of Cordavis is to reduce drug spend and ensure access to affordable medications in the United States, according to the press release.

Through this new subsidiary, CVS Health plans to develop a portfolio of biosimilar products in the U.S. market, the release said. This increased competition is expected to drive down prices and encourage investment in future products. The biosimilars market in the U.S. is projected to grow from less than $10 billion in 2022 to over $100 billion by 2029.

Cordavis has already partnered with Sandoz, a developer of generic pharmaceuticals and biosimilars, to commercialize and bring to market Hyrimoz, a biosimilar for Humira, which is a product of AbbVie, per the release. The list price of Cordavis’ Hyrimoz will be more than 80% lower than the current list price of Humira.

Shawn Guertin, chief financial officer of CVS Health, said in the release: “Cordavis is a logical evolution for us and will help ensure sufficient supply of biosimilars in the U.S. and support this market now and in the future, while ultimately improving health outcomes and reducing costs for consumers.”

Prem Shah, chief pharmacy officer and co-president of the Pharmacy and Consumer Wellness segment, cited the importance of biosimilars in creating competition and reducing costs for specialty pharmaceuticals. “We have assembled a talented team at Cordavis and look forward to the value this business will deliver to patients and payors,” Shah said in the release.

In another recent move in the healthcare space, Blue Shield of California said Aug. 17 that it is enlisting the efforts of Amazon Pharmacy and Mark Cuban Cost Plus Drug Company to streamline prescription drug care, delivery and payments. The firm said the joint efforts will save it about $500 million in annual drug costs.