CVS Health launches biosimilars subsidiary, will commercialize Humira competitor

CVS Health Corp.
CVS,
-0.97%
said Wednesday that it has launched a new subsidiary that will work directly with drugmakers to co-produce and commercialize biosimilars. The subsidiary, Cordavis, has contracted with Novartis AG’s
NVS,
+0.23%
Sandoz unit to commercialize a biosimilar for AbbVie Inc.’s
ABBV,
-0.78%
Humira, CVS said in a release. The price of that biosimilar, Hyrimoz, will be more than 80% lower than Humira’s list price, CVS said. “Biosimilars are crucial to creating competition and reducing costs for specialty pharmaceuticals where drug prices are rising the fastest,” Prem Shah, CVS’s chief pharmacy officer, said in a statement. CVS stock was down 1% Wednesday and has dropped 28.8% in the year to date, while the S&P 500 has gained 15.5%.