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CVS Health's (CVS) Cordavis to Focus on Biosimilar Products
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CVS Health Corporation (CVS - Free Report) recently announced the launch of its wholly owned subsidiary, Cordavis. The new business will work directly with manufacturers to commercialize and/or co-produce biosimilar products for the pharmaceutical market in the United States.
The latest development has been termed as a logical evolution, given the company’s efforts to bring innovative solutions to the market that lower the cost of drugs and ensure people have access to the necessary medications. All the products of Cordavis will be FDA-approved, high quality and convenient for patients to use.
News in Detail
A biosimilar is a biologic medication approved by the FDA that is highly similar to the FDA-approved biologic medicine with no meaningful clinical differences. As the pharmaceutical environment in the United States continues to evolve, biosimilars represent one of the biggest opportunities for reducing drug costs for employers and consumers.
Image Source: Zacks Investment Research
In the scenario of rapidly rising drug prices, biosimilars are crucial for reducing costs for specialty pharmaceuticals. Through Cordavis, CVS Health aims to develop a portfolio of products that will potentially facilitate broader access to biosimilars in the United States. While intense competition is expected to drive down prices, this will also encourage investments in future products.
Cordavis has contracted with Sandoz to commercialize and bring to the market Hyrimoz (adalimumab-adaz), a biosimilar for Humira, in the first quarter of 2024. Cordavis Hyrimoz will be the first product under the subsidiary’s private label, with the list price expected to be lower than the current list price of Humira by more than 80%. Through its direct involvement, management expects to expand the supply chain and ensure biosimilar availability in the market.
Industry Prospects
According to a published estimate quoted by CVS, the biosimilar market in the United States is projected to grow from less than $10 billion in 2022 to more than $100 billion by 2029.
Globally, the biosimilar market was valued at $21.8 billion in 2022 and is expected to witness a CAGR of 15.9% by 2030.
Recent Developments
Last month, CVS Caremark — a CVS Health company — and GoodRx announced the launch of Caremark Cost Saver to help lower pharmacy out-of-pocket drug costs for CVS Caremark clients’ members. Via this new program, CVS Caremark’s eligible members will have automatic access to GoodRx’s prescription pricing to allow them to pay lower prices, when available, on generic medications in a seamless experience at the pharmacy counter.
In June 2023, CVS Health opened a Workforce Innovation and Talent Center in collaboration with the Goodwill Industries of Greater Detroit. The new innovation hub is part of the company’s commitment to extend accessible job training and placement to Detroit’s overlooked pools of talent.
Price Performance
In the past six months, CVS shares have decreased 22.6% compared with the industry’s fall of 24.3%.
Zacks Rank and Key Picks
CVS Health currently carries a Zacks Rank #3 (Hold).
Haemonetics’ stock has risen 11.5% in the past year. Earnings estimates for Haemonetics have increased from $3.56 to $3.74 in 2023 and $3.96 to $4.07 in 2024 in the past 30 days.
HAE’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 19.39%. In the last reported quarter, it posted an earnings surprise of 38.16%.
Estimates for Quanterix’s 2023 loss per share have narrowed from $1.19 to 97 cents in the past 30 days. Shares of the company have increased 148.6% in the past year against the industry’s decline of 5.0%.
QTRX’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 30.39%. In the last reported quarter, it posted an earnings surprise of 55.56%.
Estimates for SiBone’s2023 loss have narrowed from $1.42 to $1.27 per share in the past 30 days. Shares of the company have increased 16.8% in the past year against the industry’s fall of 5.1%.
SIBN’s earnings beat estimates in all the trailing four quarters, the average surprise being 20.37%. In the last reported quarter, SiBone delivered an earnings surprise of 26.83%.
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CVS Health's (CVS) Cordavis to Focus on Biosimilar Products
CVS Health Corporation (CVS - Free Report) recently announced the launch of its wholly owned subsidiary, Cordavis. The new business will work directly with manufacturers to commercialize and/or co-produce biosimilar products for the pharmaceutical market in the United States.
The latest development has been termed as a logical evolution, given the company’s efforts to bring innovative solutions to the market that lower the cost of drugs and ensure people have access to the necessary medications. All the products of Cordavis will be FDA-approved, high quality and convenient for patients to use.
News in Detail
A biosimilar is a biologic medication approved by the FDA that is highly similar to the FDA-approved biologic medicine with no meaningful clinical differences. As the pharmaceutical environment in the United States continues to evolve, biosimilars represent one of the biggest opportunities for reducing drug costs for employers and consumers.
Image Source: Zacks Investment Research
In the scenario of rapidly rising drug prices, biosimilars are crucial for reducing costs for specialty pharmaceuticals. Through Cordavis, CVS Health aims to develop a portfolio of products that will potentially facilitate broader access to biosimilars in the United States. While intense competition is expected to drive down prices, this will also encourage investments in future products.
Cordavis has contracted with Sandoz to commercialize and bring to the market Hyrimoz (adalimumab-adaz), a biosimilar for Humira, in the first quarter of 2024. Cordavis Hyrimoz will be the first product under the subsidiary’s private label, with the list price expected to be lower than the current list price of Humira by more than 80%. Through its direct involvement, management expects to expand the supply chain and ensure biosimilar availability in the market.
Industry Prospects
According to a published estimate quoted by CVS, the biosimilar market in the United States is projected to grow from less than $10 billion in 2022 to more than $100 billion by 2029.
Globally, the biosimilar market was valued at $21.8 billion in 2022 and is expected to witness a CAGR of 15.9% by 2030.
Recent Developments
Last month, CVS Caremark — a CVS Health company — and GoodRx announced the launch of Caremark Cost Saver to help lower pharmacy out-of-pocket drug costs for CVS Caremark clients’ members. Via this new program, CVS Caremark’s eligible members will have automatic access to GoodRx’s prescription pricing to allow them to pay lower prices, when available, on generic medications in a seamless experience at the pharmacy counter.
In June 2023, CVS Health opened a Workforce Innovation and Talent Center in collaboration with the Goodwill Industries of Greater Detroit. The new innovation hub is part of the company’s commitment to extend accessible job training and placement to Detroit’s overlooked pools of talent.
Price Performance
In the past six months, CVS shares have decreased 22.6% compared with the industry’s fall of 24.3%.
Zacks Rank and Key Picks
CVS Health currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Haemonetics (HAE - Free Report) , Quanterix (QTRX - Free Report) and SiBone (SIBN - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Haemonetics’ stock has risen 11.5% in the past year. Earnings estimates for Haemonetics have increased from $3.56 to $3.74 in 2023 and $3.96 to $4.07 in 2024 in the past 30 days.
HAE’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 19.39%. In the last reported quarter, it posted an earnings surprise of 38.16%.
Estimates for Quanterix’s 2023 loss per share have narrowed from $1.19 to 97 cents in the past 30 days. Shares of the company have increased 148.6% in the past year against the industry’s decline of 5.0%.
QTRX’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 30.39%. In the last reported quarter, it posted an earnings surprise of 55.56%.
Estimates for SiBone’s2023 loss have narrowed from $1.42 to $1.27 per share in the past 30 days. Shares of the company have increased 16.8% in the past year against the industry’s fall of 5.1%.
SIBN’s earnings beat estimates in all the trailing four quarters, the average surprise being 20.37%. In the last reported quarter, SiBone delivered an earnings surprise of 26.83%.