Boehringer reduces Humira biosimilar price to boost usage

Boehringer Ingelheim has announced it will sell an unbranded version of its Humira biosimilar at a steep 92% discount to the list price of AbbVie's original drug for cash-paying customers via the GoodRx price comparison platform. This move, disclosed on Thursday, aims to intensify price competition on AbbVie's flagship medication, potentially helping the German pharmaceutical company gain a stronger foothold in this highly competitive market.

The expiration of Humira’s patent in the U.S. last year opened the floodgates for competition, with 11 rival companies introducing similar drugs. These competitors are employing various strategies to enhance their market positions. For instance, Sandoz and Alvotech have partnered with pharmacy benefits managers to secure better placements on drug formularies. Boehringer Ingelheim launched its branded Humira biosimilar, Cyltezo, in July of the previous year, pricing it 5% lower than Humira. This approach wasn’t unique, as other companies like Amgen and Fresenius also introduced their biosimilars at modest discounts to AbbVie's prices.

Despite these efforts, Boehringer has faced challenges in boosting sales. The sluggish market acceptance of Cyltezo led the company to restructure its biosimilar sales strategy and reduce staff. In an attempt to revitalize its market entry, Boehringer is now offering a deeper discount. Through GoodRx, their unbranded biosimilar will be priced at $550 for a pack of two injection pens. This pricing translates to an out-of-pocket cost of approximately $7,150 annually for patients requiring bi-weekly injections for conditions such as rheumatoid arthritis, Crohn's disease, and other autoimmune disorders.

This pricing agreement between Boehringer and GoodRx comes at a time when there are increasing indications of price and cost pressures on Humira and its alternatives. AbbVie has already reported a significant 40% year-over-year drop in Humira sales for the first quarter of 2024, a trend expected to persist following CVS Health's decision to exclude Humira from its national commercial formularies starting April 1.

Analyst David Risinger from Leerink Partners, in a recent research note, predicted a 32% year-over-year decline in Humira sales for AbbVie when they release their second-quarter results shortly. AbbVie is looking to its newer autoimmune treatments, Skyrizi and Rinvoq, to mitigate the financial impact of dwindling Humira revenues. In the first quarter, Skyrizi generated $2 billion in global sales, closely trailing Humira's $2.3 billion, while Rinvoq brought in $1.1 billion.

This strategic shift by Boehringer Ingelheim to offer an unbranded, significantly cheaper biosimilar via GoodRx reflects the increasing pressure on pharmaceutical companies to remain competitive in the biologics market as more biosimilars enter the fray. The evolving landscape demonstrates both the challenges and opportunities that come with the introduction of biosimilars, especially in a market where price sensitivity and accessibility are becoming more critical.