Humira has fallen off its throne. For years, it was the world’s top-selling drug, generating more than $20 billion in annual sales at its peak in 2021 for AbbVie. But then, Humira’s patent ran out, paving the way for a flood of competitive alternatives. AbbVie knew this was coming, and in a surprising shift, Skyrizi – another AbbVie brand – overtook its Humira market instead of the cheaper biosimilar versions of Humira (aka adalimumab). Retaining high sales demonstrates how the company successfully employed “product hopping” tactics, which has raised concerns about the viability of biosimilar competition.
What is Product Hopping?
When a patient is on a brand that is about to lose its patent and become subject to competition, the pharmaceutical company actively tries to transition the patient to a newer, patented product. Like offering patients on Humira a coupon to Skyrizi, the newer treatment in the same therapeutic area, just as biosimilar versions of Humira launched. The strategy allowed AbbVie to preserve a substantial share of the immunology market, despite the arrival of ten adalimumab biosimilars.
The tactic is raising red flags among those trying to contain pharmacy costs. Manufacturer coupons have an expiration date and when the coupon time elapses, the real price becomes evident. Product hopping impacts competition and can prevent patients and healthcare systems from reaping the benefits of having affordable biosimilars available. The quick adoption of Skyrizi, combined with limited formulary access for biosimilars, is limiting the cost savings potential for health plans, employers, and patients alike. According to IQVIA, while the monthly fill volume for adalimumab biosimilars grew 400% between March and April 2024, overall volume is still declining because patients are opting for non-biosimilar options.
In 2022, Congress mandated that the Federal Trade Commission investigate product hopping practices. The FTC report highlighted that product hopping poses antitrust concerns, particularly when a brand-name company seeks to maintain a near-monopoly at the expense of generic and biosimilar competitors. Proposed legislation, the Affordable Prescriptions for Patients Act of 2023, would limit such practices by capping the number of patents over which an innovator company can sue a biosimilar manufacturing competitor.
The Formulary Barriers
The rocky path to biosimilar adoption is compounded by a delay in formulary expansion to include adalimumab. Though one large PBM, CVS Caremark, added Hyrimoz to its formulary while removing Humira and boosting biosimilar market share to 22% (as of October 2024), the overall volume of adalimumab is trending down, limiting biosimilars’ impact on cost containment.
RazorMetrics’ Biosimilar Interchange Solution
Despite the challenges, biosimilars can dramatically drive down costs and expand treatment options. Policy reforms take time, and it is critical to get ahead of the market dynamics before they shift, which is where RazorMetrics comes in.
Using AI automation and our physician-directed solution, we have the capability to switch an entire member base to the biosimilar option as soon as the formulary change takes effect. One large employer client was able to change 80% of the Humira prescriptions to the biosimilar within 3 months saving the client over $10 million annually.
While the growth of biosimilars like adalimumab was slowed by product hopping, utilizing solutions like RazorMetrics can deliver on the promise of biosimilar savings.
