AbbVie's Arthritis Drug Humira Retains Market Dominance Despite Biosimilar Competition, Challenges Biosimilar Industry Viability
Portfolio Pulse from Vandana Singh
AbbVie's arthritis drug Humira retains over 80% of its patients despite facing nine lower-priced biosimilar competitors. This raises concerns about the viability of the biosimilar market. Pharmacy benefit managers (PBMs) like CVS Health, Cigna, and UnitedHealth Group have influenced patient access, but few patients switched to biosimilars. AbbVie expects a 36% erosion in U.S. sales of Humira this year. The biosimilar industry advocates for regulatory changes, claiming $6 billion in potential savings have been lost. Johnson & Johnson's Crohn's disease drug Stelara may follow a similar trajectory.
June 07, 2024 | 2:39 pm
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NEUTRAL IMPACT
Cigna's Express Scripts PBM offered lower-priced biosimilars but had minimal impact on patient switching.
Cigna's involvement in offering biosimilars is mentioned, but the direct impact on its stock is neutral due to minimal patient switching.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 60
NEUTRAL IMPACT
CVS Health's Caremark PBM influenced patient access to biosimilars but few patients switched until CVS removed Humira from its list of covered drugs.
CVS Health's role in influencing patient access to biosimilars is notable, but the direct impact on its stock is neutral as the focus is more on Humira's market dynamics.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
Johnson & Johnson's Crohn's disease drug Stelara may follow a similar trajectory to Humira with the launch of six biosimilars.
The potential impact on Johnson & Johnson's Stelara is speculative at this point, making the short-term impact on its stock neutral.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
UnitedHealth Group's Optum Rx PBM offered lower-priced biosimilars but had minimal impact on patient switching.
UnitedHealth Group's involvement in offering biosimilars is mentioned, but the direct impact on its stock is neutral due to minimal patient switching.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 60
POSITIVE IMPACT
AbbVie's Humira retains over 80% of its patients despite facing nine lower-priced biosimilar competitors. AbbVie expects a 36% erosion in U.S. sales of Humira this year.
Despite the expected erosion in sales, Humira's ability to retain a significant portion of its patient base suggests strong market dominance, which is positive for AbbVie's stock in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100