Blue Defend of California is shaking up the pharmacy panorama with a landmark deal to drastically cut back the worth of a biosimilar various to AbbVie Inc.’s ABBV Humira, one of many world’s most costly and broadly used medication.
Humira, authorized by the FDA in 2002, has lengthy dominated the market, treating circumstances like arthritis and Crohn’s illness.
Additionally Learn: AbbVie’s Arthritis Drug Humira Retains Market Dominance Regardless of Biosimilar Competitors, Challenges Biosimilar Trade Viability.
Nevertheless, it has confronted criticism for its excessive pricing and prolonged market exclusivity, which led to January 2023.
Blue Defend, which processes round 40,000 Humira prescriptions yearly, spends extra on the drug than some other medicine for its members, making this price-cutting transfer each well timed and important for addressing the rising value of healthcare.
The nonprofit well being plan announced that it could buy Fresenius Kabi’s FDA-approved biosimilar adalimumab-aacf at a web value of $525 per month-to-month dose, a major discount from Humira’s market-reported value of $2,100.
The deal, facilitated by Evio Pharmacy Options, goals to get rid of extreme markups usually imposed by pharmacy profit managers (PBMs) within the present drug provide chain.
The brand new pricing mannequin is a part of Blue Defend’s Pharmacy Care Reimagined initiative, which rethinks conventional PBM constructions to make sure extra clear and inexpensive pricing.
The aligned incentives and simplified provide chain have enabled Blue Defend to supply Fresenius Kabi’s biosimilar to its members. Beginning in January 2025, most business members are anticipated to pay $0 out of pocket.
This transfer units a important precedent because the pharmaceutical trade approaches a “biosimilar cliff,” with extra low-cost options coming into the market.
Final month, UnitedHealth Group Inc. UNH stated it could take away Humira from a few of its most well-liked reimbursement lists beginning January 1, 2025. The corporate will suggest lower-cost biosimilar variations as a substitute.
Value Motion: ABBV inventory is down 0.45% at $195.93 on the final examine on Thursday.
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