2024-05-11 00:01:34
Uplaima, 85% cheaper than the original, launched locally
Existing Uplaima targets public insurance market with low rebates
Promoting customized strategies for each market based on the U.S. dual pricing policy
“Preemptive response to IRA applicable next year… Insurance company preference expected to increase”
Simultaneously improve product competitiveness by diversifying capacity and securing interchangeability
Celltrion is introducing a ‘dual pricing’ policy for the biosimilar Euplaima (ingredient name: adalimumab) for the treatment of autoimmune diseases in the United States, the world’s largest market. The intention is to expand local prescriptions in earnest through customized responses to each major market in the United States.
Celltrion announced on the 10th that it had recently launched the low wholesale price (WAC) version of Uplyma in the U.S. market, which is 85% cheaper than the wholesale acquisition cost (WAC) of the original product. The lower wholesale price version of Uplyma is supplied for $1,038 (about 1.42 million won for two doses).
In the United States, different market types, such as insurance companies and PBMs (Pharmacy Benefit Managers), apply different preferred drug prices or rebate strategies, so even though they are the same product, they sometimes adopt a strategy of diluting the prices and releasing them after approval as separate products.
Celltrion began targeting the market in the United States through High WAC and Low WAC Uplyma. In the case of the existing High WAC Uplyma, it is supplied for $6576.5 (about 9.01 million won), 5% cheaper than the original. The plan is to supply high WAC products to the public insurance market with low rebates and low WAC versions to the private insurance market with high rebates to enhance Uplaima’s influence throughout the market and thereby maximize profitability.
Last month, Celltrion signed a contract with a large U.S. PBM to list Low WAC Uplyma on its formulary. Considering that High WAC Uplyma was listed in the public insurance formulary of Optum, another large PBM company, last year, it can be seen that the two PBMs have virtually secured approximately 50% of coverage (based on the number of subscribers) in the U.S. insurance market. You can. It is also a factor in positively evaluating Uplaima’s sales growth potential this year.
In particular, Celltrion explained that mid- to long-term effects are expected as Uplaima’s dual pricing policy has been promoted in order to preemptively respond to the Inflation Reduction Act (IRA), which is scheduled to be applied starting next year. After the application of IRA, insurance companies and PBMs are expected to increase their preference for low WAC products because insurance companies must pay a portion of the excess cost for drugs with an annual patient cost of more than $2,000 (approximately 2.73 million won).
Celltrion plans to actively utilize the dual pricing policy to quickly conclude contracts with other large PBMs as well as small and medium-sized PBMs. As it is possible to expand the target market to uninsured patients and small PBMs with low rebate negotiation power by using low WAC products, the plan is to accelerate the expansion of prescriptions as a strategy to meet the demands of various stakeholders in the United States.
We are also pursuing strengthening the competitiveness of the product itself. Following the previously released 40mg and 80mg, the company has completed a lineup of three high-concentration products in dosage forms, including 20mg for pediatric patients last March. We are also undergoing a change permit process to ensure interchangeability with the original product. As Euplaima can be prescribed at pharmacies without doctor intervention with the same efficacy and safety as the original, more aggressive marketing is expected to become possible.
Humira, Uplaima’s original drug, is a global blockbuster product that recorded sales of approximately $14.44 billion (approximately KRW 18.7252 trillion) as of last year. Of these, approximately 15.808 trillion won, or more than 84% of the total, are sales in the U.S. market.
Thomas Nusbickel, Chief Commercial Officer of Celltrion Americas, said, “As access to medicines in the U.S. is becoming increasingly diverse, the launch of biosimilars will allow the market to enjoy lower prices due to competition and improved accessibility to medical care for patients. “The value has expanded,” he said. “We expect that access to Uplyma will be further improved through the dual pricing policy and that economic benefits will be provided to patients with autoimmune diseases and the medical system as a whole.”
Kim Min-beom, Donga.com reporter mbkim@donga.com
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2024-05-11 00:01:34