UnitedHealth Follows Opponents, Replaces Humira with Decrease-Value Biosimilars – UnitedHealth Group (NYSE:UNH)

UnitedHealth Group Inc. UNH reportedly introduced on Tuesday that it’ll take away AbbVie Inc.’s ABBV blockbuster drug Humira from a few of its most well-liked reimbursement lists beginning January 1, 2025. The corporate will suggest lower-cost biosimilar variations as an alternative.

This transfer is an element of a bigger development within the U.S. pharmaceutical market, as well being plans search to chop prices by selling options to high-priced medication.

Additionally Learn: FTC Investigation Uncovers Anti-Aggressive Practices By Handful Of Pharmacy Profit Managers, Together with CVS Well being, UnitedHealth.

Reuters highlights that Amgen Inc’s AMGN Amjevita, managed by its pharmacy advantages unit, Optum Rx, is among the many biosimilars coated underneath UnitedHealth’s lists for industrial well being plans.

With this choice, Optum turns into the final of the three largest U.S. pharmacy profit managers (PBMs) to exclude Humira.

Cigna Company CI introduced final month that it might take away Humira from a few of its lists in 2025, following the same choice by CVS Well being Inc’s CVS Caremark unit in April.

CVS’s motion led to a swift shift, with extra sufferers transitioning to Sandoz Group AG’s SDZNY SDZXF biosimilar model of Humira in simply three weeks than within the earlier 15 months mixed.

Cigna plans to cowl biosimilars like Boehringer Ingelheim’s Cyltezo, Simlandi from Teva Pharmaceutical Industries Ltd TEVA, and Alvotech’s ALVO merchandise, together with an unbranded model of Sandoz’s Hyrimoz, as replacements for Humira.

UnitedHealth famous that sufferers would nonetheless have entry to Humira till the FDA designates the popular biosimilars as interchangeable with the unique drug, per the report. The FDA is anticipated to make this designation in 2025.

Regardless of the rising competitors, AbbVie has managed to retain a dominant share of the U.S. Humira market all through 2023. This has been achieved via favorable negotiations with PBMs, at the same time as biosimilar options from corporations like Pfizer Inc PFE entered the market.

As per a Reuters report, Humira has nonetheless managed to retain over 80% of its sufferers even after going through lower-priced rivals within the U.S. over the previous 12 months.

Following their launch final 12 months, pharmacy profit managers largely influenced affected person entry, with minimal incentive for docs to modify to those options.

In Could, Cantor Fitzgerald stated AbbVie had positioned itself to soak up Humira biosimilar erosion and obtain modest operational income development.

Worth Motion: UNH inventory is down 2% at $587.07 ultimately test Wednesday.

Photograph by way of Shutterstock

Disclaimer: This content material was partially produced with the assistance of AI instruments and was reviewed and printed by Benzinga editors.

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