World’s Top-Selling Drug Going Off Patent Means Big Bucks for Middlemen

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World’s Top-Selling Drug Going Off Patent Means Big Bucks for Middlemen
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Heard on the Street: As AbbVie’s Humira faces copycat biologics, the biggest beneficiaries will be the middle-men negotiating and dispensing the drugs such as Cigna and CVS

While manufacturing biosimilars will be a big opportunity for other drug companies, the Food and Drug Administration hasof the drug, meaning there will be pressure on margins as companies compete to grab a slice of the blockbuster. AbbVie itself will continue making money from Humira for several years, with annual revenue for the drug exceeding $4 billion until 2026, according to data from FactSet.

But the savings will also benefit pharmacy-benefit managers, or PBMs, such as Optum Rx, Cigna’s Evernorth/Express Scripts, and CVS’s Caremark, which negotiate those discounts and then provide the medication to patients through specialty pharmacies. But an analysis by Morgan Stanley earlier this year suggests that more than 70% of total branded sales going off patent through 2025 will be covered by pharmacy-benefit managers and dispensed directly by their specialty pharmacies to patients. As such, Morgan Stanley argues, that will place “greater influence on how demand is shaped” in the hands of pharmacy-benefit managers.

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