Viatris Launches Dual Versions of Interchangeable Insulin Biosimilar Semglee Amid Strategic Pricing Move

Compiled by Fan Dongdong

Recently, Biocon and Viatris announced the launch of Semglee, an interchangeable insulin biosimilar. The originator drug is Sanofi's blockbuster diabetes medication, Lantus. This biosimilar is being launched in both branded and unbranded versions, and once on the market, either version can be substituted for Sanofi's Lantus at the pharmacy counter.

Analysts pointed out that the purpose of the company's move is to try to capture market share using an unusual pricing strategy. The company told foreign media Fierce Pharma in an interview that the non-branded version launched this time, called insulin glargine, has a list price (WAC) of $147.98 for a pack of five 3ml pens. The company spokesperson added that this price is 65% cheaper than the list price of Lantus and represents the lowest wholesale acquisition cost for insulin glargine pens on the market to date.

Meanwhile, the wholesale acquisition cost for branded Semglee is $404.04 per package of five 3-milliliter pens, only slightly less expensive than Lantus (five pens for $425.31). By launching two versions of the same product, Viatris effectively gives payers a choice between a high-cost, high-rebate product or another that is lower priced with a lower rebate, Bernstein analyst Ronny Gal said in an email.

Gal pointed out that Eli Lilly has already been attempting to make an impact in two niche markets of the diabetes sector through fast-acting insulin. He added, "Primarily by selling high-priced products with significant rebates." In 2020, Viatris launched the non-interchangeable Semglee at a wholesale acquisition cost of $99, offering a substantial discount compared to Lantus' $284. However, when Semglee received its historic interchangeable designation this July, Viatris increased the wholesale acquisition cost by 300% to $279. Notably, the price hike coincided with discussions on how interchangeable biosimilars could save patients money.

Bernstein analysts wrote in a report to clients earlier this month that as for why the higher-priced Semglee seems to have an advantage, pharmaceutical intermediaries "dislike lower wholesale acquisition costs and small rebates on products that already have high prices and large rebates." The team added that Viatris tried to make its drug more attractive to pharmacy benefit managers by setting higher wholesale acquisition costs and "reducing the discounts surpassing Lantus to achieve an even lower net price."

Drug Channels Institute CEO Dr. Adam Fein wrote last week that the coverage "forced" Viatris to launch both high-price and low-price versions of its products. As a result, "many commercial payers will adopt the more expensive product rather than the identical but cheaper version." Fein noted that Express Scripts' largest commercial drug formulary will include only the high-price, high-rebate version of Semglee, while Prime Therapeutics will cover both versions of the insulin.

Reference Source: Viatris Launched Two Versions of Its Interchangeable Insulin Biosimilar. Why?