Celltrion has finalized negotiations with major U.S. pharmacy benefit managers (PBMs) to include its high-revenue follow-up product line in their formularies. The company is now working to secure additional contracts in the fourth quarter. Celltrion’s strategy is to maintain its growth momentum in Q4 by leveraging strong sales of existing products and expanding prescriptions for its new offerings.
On Wednesday, Celltrion announced that negotiations with major U.S. PBMs for the inclusion of its follow-up product line in their formularies are in the final stages. If contracts are signed by year-end, the company expects to see expanded insurance coverage for its new products, strengthening their prescription base.
In the U.S. healthcare system, PBMs play a crucial role by negotiating drug prices and reimbursement terms on behalf of insurers and managing lists of covered medications. Achieving preferred medication status in a formulary can significantly benefit patients through lower out-of-pocket costs or fewer prescription restrictions, ultimately driving prescription growth.
Celltrion’s autoimmune disease treatment, Avtozma (tocilizumab), launched in the U.S. last October, has already secured preferred medication status in the formularies of the three largest PBMs. This strategic move has enabled the company to obtain reimbursement coverage for over half of the local insurance market right from the product’s launch.
The company’s recent U.S. launch of its allergy treatment, Omlyclo (omalizumab), has also seen success, with the drug being included as a preferred medication in the formulary of Optum, a major PBM. Celltrion aims to boost prescriptions for both Avtozma and Omlyclo through additional contracts.
Celltrion’s existing product line continues to perform well in the U.S. market. According to IQVIA, a leading pharmaceutical market research firm, the company’s blood cancer treatment Truxima (rituximab) held approximately 39% market share as of August, outperforming both original drugs and competing biosimilars to rank first in prescriptions. Similarly, its autoimmune disease treatment Inflectra (infliximab) maintained its position as the top biosimilar with a 31% market share.
The company’s newer offerings are also gaining traction. Steqeyma (ustekinumab) and Yuflyma (adalimumab) have captured market shares of 15% and 11%, respectively. Notably, Yuflyma has seen impressive growth, more than doubling its market share from about 5% in January.
Looking ahead, Celltrion plans to optimize its U.S. operations by leveraging its direct sales system and existing relationships with medical institutions and distribution networks. This approach aims to reduce market entry costs for new products while enhancing sales efficiency. Following record-breaking Q3 results, with sales of 1.5 trillion KRW (approximately 1.12 billion USD) and an operating profit of 510 billion KRW (about 381 million USD), the company is poised to maintain its growth trajectory in Q4.
A Celltrion spokesperson stated that they’re in the final stages of negotiations with major PBMs for additional formulary listings, with the goal of finalizing contracts in Q4. By combining the strong performance of the existing products, the expanding prescriptions of the high-revenue follow-up products, and the competitive local direct sales approach, it’s confident in the ability to exceed the Q4 profit targets.
