Celltrion (068270.KS) is negotiating to list its high-margin next-generation biosimilars on the formularies of major U.S. pharmacy benefit managers, aiming to sign an additional contract within the fourth quarter. The company posted its largest quarterly earnings on record in the third quarter and expects growth to continue into the final three months of the year.
Celltrion said on the 14th that talks to list its high-margin next-generation biosimilar portfolio with large PBMs in the U.S. market have entered their final stage. With a contract expected to be signed within the fourth quarter, the company anticipates stronger prescription volumes through wider reimbursement coverage for the new products.
PBMs manage drug formularies, pricing and reimbursement terms on behalf of insurers. Listing as a preferred drug on a PBM formulary improves patient access through insurance coverage, making prescriptions by physicians and subsequent sales more likely.
Celltrion has been expanding its position in the U.S. insurance market through PBM listing agreements for its next-generation products. Aptozma, an autoimmune disease treatment launched in the U.S. in October last year, was listed as a preferred drug on the commercial formularies of the three largest U.S. PBMs. As a result, it secured reimbursement coverage for more than half of the local insurance market from the early stage of its launch.
Omlyclo, an allergy treatment launched in the U.S. earlier this month, was also listed as a preferred drug on the commercial formulary of Optum, a major PBM. As the first biosimilar to enter the U.S. market in its class, Omlyclo is using its early reimbursement coverage as a springboard to expand its market influence.
Celltrion plans to accelerate its growth in the U.S. market by combining steady sales of its existing products with wider prescription of its high-margin next-generation lineup and additional PBM listing agreements. The company aims to exceed in the fourth quarter the record earnings it posted in the third quarter.
"We are continuing talks with the goal of signing a contract with a major PBM within the fourth quarter," a Celltrion official said. "By adding the competitiveness of our direct sales operation in the U.S. to solid sales of existing products and wider prescription of high-margin next-generation products, we will do our utmost to exceed the profit target the company has set for the fourth quarter."