April 5 (Reuters) - Boehringer Ingelheim on Thursday
said it will lay off some of its U.S. salesforce due to poor
sales there of its biosimilar version of AbbVie's ( ABBV )
blockbuster arthritis treatment Humira.
The German drugmaker said it planned to reduce its
customer-facing teams in favor of a hybrid in-person and virtual
sales model by June 30, in large part because pharmacy benefit
managers (PBMs) had kept branded Humira on their lists of
medicines for reimbursement.
That choice has led to less uptake of biosimilar versions of
Humira in the United States, including Boehringer's Cyltezo, it
said.
The company, which has 53,000 employees worldwide, added
that a "low double-digit number" of U.S. jobs were affected.
"We remain committed to the U.S. and we will increase
investments based on our current and future portfolio," it said
in a statement.
Despite nine biosimilars being launched in the U.S. last
year, AbbVie ( ABBV ) has held onto more than 98% of the Humira market.
Boehringer launched Cyltezo last July but has only managed
to sell 1,487 prescriptions in total since then, according to
IQVIA data. Almost 2.8 million Humira prescriptions have been
written during the same period.
Humira until recently was the world's top selling
prescription medicine with annual sales reaching $22 billion in
2022, but has been eclipsed by Merck & Co's ( MRK ) cancer drug
Keytruda.
Unlike easy to manufacture pills that can be copied and sold
as generics at a huge discount once patents lapse, complex
biologic medicines made from living cells cannot be exactly
duplicated and so are known as biosimilars. The introduction of
biosimilars was supposed to help cut the price of expensive
biotech medicines that go off patent, if not by as much as
generics.
The German drugmaker priced its branded and unbranded
versions the drug at a 5% and 81% discount to Humira's 2023 list
price of $6,922 per month.
Swiss drugmaker Sandoz launched its biosimilar Hyrimoz with
the same prices as Boehringer and Amgen ( AMGN ), whose Amjevita was the
first Humira biosimilar to hit the U.S. market, priced at a 5%
and 55% discount to Humira.
Boehringer's Humira biosimilar was the first to be
designated interchangeable by the U.S. Food and Drug
Administration, meaning it can be substituted for the original
without consulting the prescriber.
UnitedHealth Group's ( UNH ) Optum Rx and Cigna's ( CI )
Express Scripts, two of the largest U.S. PBMs, chose to include
Cyltezo on their insurance reimbursement lists last year
alongside Humira, Hyrimoz and Amjevita.