Another Blow to Roche: UnitedHealthcare Lists Amgen's Mvasi and Kanjinti as Preferred Biosimilars

Compiled by: Fan Dongdong

Currently, due to the entry of biosimilars, Roche’s two blockbuster oncology drugs, Avastin and Herceptin, are in a similar predicament. To make matters worse, the largest health insurer in the United States will also opt to purchase biosimilars.

Recently, UnitedHealthcare (UNH) announced that it will include in its commercial, community, and Medicare Advantage plans starting October 1Amgen and Allergan’s biosimilars Mvasi and Kanjinti as preferred products. The pricing of both biosimilars is15% lower than the originator drugMvasi is priced at $677.40 for the 100 mg vial and $2,709.60 for the 400 mg single-dose vial; Kanjinti is offered to the market at a price of $3,697.26 for the 420 mg multi-dose vial. This decision means that Avastin and Herceptin will no longer be the preferred treatment drugs under UNH health insurance.

UnitedHealth is a diversified healthcare company whose primary business models include providing health benefit plans and services to large national employers, as well as offering managed care solutions for Medicaid programs across U.S. states. Meanwhile, its international division delivers healthcare services to over 100 million people worldwide, covering approximately more than 100 countries globally.

For Roche, UNH’s decision is undoubtedly a blow. The two blockbuster drugs that Roche once viewed as key drivers of profit growth both saw their patents expire in June 2019. As the wave of biosimilars approaches, sales performance of Avastin and Herceptin will face severe setbacks.

According to analyst Ronny Gal, Avastin and Herceptin are currently facing7 unitsApproved biosimilars will face additional challenges in 202211 ModelsCompetition for New Drugs.

Gal believes that future competition from biosimilars will be able to consume 70% of Roche’s oncology market share and may directly lead to the demise of three formerly high-performing blockbuster oncology drugs. For Amgen, Mylan, and Teva, Roche’s losses could translate into gains for them. Gal stated that the potential biosimilar sales revenues for these three pharmaceutical companies could reach $1 billion, $260 million, and $470 million, respectively.

Roche’s Avastin and Herceptin generated combined U.S. sales of $5.9 billion in 2018, while the company’s best-selling product, Rituxan, achieved sales of $4.24 billion in the same year. Teva and Celltrion are expected to launch Rituxan biosimilars within this year, and Fosun Pharma’s Rituxan biosimilar has also received approval in China. In Europe, Rituxan sales have faced a significant decline, with European sales of the drug dropping by nearly 46% in the fourth quarter of 2018.

However, not every pharmaceutical manufacturer has earned the favor of UNH. It is reported that UNH is currently compiling a list of non-preferred products, which includes a series of yet-to-be-released biosimilars, such as Pfizer’s Zirabev, Celltrion/Teva’s Herzuma, Mylan/Biocon’s Ogivri, Samsung Bioepis’ Ontruzant, and Pfizer’s Trazimera. At present, blockbuster immunology drug Remicade from Johnson & Johnson and bone marrow stimulant Neulasta from Amgen have maintained their status as preferred drugs amidst competition from biosimilar rivals including Celltrion, Pfizer, Samsung Bioepis, and Merck. Another biosimilar designated as preferred by UNH is Nivestym from Novartis Sandoz, which is a generic version of Amgen’s Neupogen.

Reference Source: Another Hit for Roche: UnitedHealthcare Backs Amgen Biosimilars Over Blockbuster Oncology Drugs