CVS Health will expand its use of lower-cost biosimilars and transition to interchangeable alternatives for select brands, the company announced on Tuesday. Biosimilars are highly similar to their reference biologics and contribute to controlling high drug prices while ensuring patients receive effective treatments.
CVS Caremark will implement targeted updates to its most common commercial template formularies on July 1. The objective is to increase adoption of U.S. Food and Drug Administration-approved biosimilars with no clinically meaningful differences from the reference product and, in many cases, designated as interchangeable.
As part of these updates, it will transition from Johnson & Johnson's psoriasis drug Stelara. on its most common commercial template formularies to preferring lower-cost, interchangeable biosimilar alternatives. With this change, most members will pay nothing out of pocket for their therapy.
"Our formulary plays a critical role in addressing rising drug costs without compromising clinical quality," said Joshua Fredell, Pharm. D., senior vice president of CVS Health. "Expanding adoption of FDA approved biosimilars allows us to deliver significant savings for clients while supporting broader, more affordable access to proven therapies."
The company also is expanding biosimilar coverage across select specialty categories, including treatments for multiple sclerosis and rare blood disorders. These treatments meet the same FDA standards for safety, effectiveness and quality as their reference products and, where applicable, are designated as interchangeable, offering a more affordable option for patients and plan sponsors.
These changes are part of the company's broader formulary strategy, which prioritizes leveraging competition to reduce net drug costs; expanding availability of clinically appropriate treatment options; and supporting long-term sustainability for clients and members.
CVS Caremark will provide communication and support to clients, consultants, providers and members to help ensure a smooth transition to preferred therapies. These efforts include proactive outreach, educational resources and clinical support programs.
CVS also is focusing on health care as part of its strategy, with plans to open 20 pharmacy-only locations across the United States. in 2026. It also plans to open 40 new CVS Pharmacy locations. Last summer, it announced a planned primary care partnership between its MinuteClinics and Mass General Brigham.
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