Celltrion is accelerating its entry into the U.S. market with its biosimilar Begzelma (active ingredient: bevacizumab). The company has secured a foundation for a significant entry into the insurance market by being listed in the formularies of two major pharmacy benefit managers (PBMs) in the United States.
On July 7, Celltrion announced that Begzelma has been included in the formularies of Express Scripts (ESI) and Optum, two of the top three PBMs in the U.S. Notably, it has been designated as a preferred drug in the ESI public and private insurance formularies and the Optum public insurance formulary.
Being listed as a preferred drug enhances prescription accessibility for healthcare providers and reduces out-of-pocket costs for patients, facilitating an increase in prescriptions. The reimbursement for ESI public insurance and Optum has been effective since July 1, while ESI private insurance will begin reimbursement in January 2027.
The U.S. PBM market is highly influential, with the top three companies accounting for about 80% of the total insurance market. Without inclusion in PBM formularies, it is challenging for high-cost drugs to enter the market due to reimbursement limitations.
With this listing, Begzelma has secured over 35% reimbursement coverage in the U.S. insurance market. Celltrion expects to leverage this to expand prescriptions and increase market share.
Market performance is already showing positive results. According to market research firm IQVIA, as of May this year, Begzelma achieved a 10.6% market share in the U.S., marking its first double-digit share since its launch.
Celltrion anticipates that its growth will accelerate as it expands from a focus on open market sales to the insurance reimbursement market. The company plans to continue negotiations for formulary listings with other major PBMs.
A Celltrion representative stated, "With our inclusion as a preferred drug in major U.S. PBMs, we expect a significant increase in prescriptions. We will continue to expand our market dominance through additional PBM listings."
Meanwhile, Celltrion is projected to maintain strong performance this year. According to the company, preliminary consolidated results for the second quarter show revenues of 1.3 trillion won and an operating profit of 430 billion won. This represents a 35.2% increase in revenue and a 77.3% increase in operating profit compared to the same period last year, marking the highest second-quarter performance to date. The operating profit margin improved significantly from 25% last year to approximately 33%, achieving both revenue growth and enhanced profitability.
Analysts attribute this strong performance to the expansion of sales for new biosimilar products. The increasing share of new products like Remsima SC and Omniclon has improved the product mix, leading to an estimated rise in gross profit margin from the mid-50% range last year to the low 60% range this year.
Additionally, the effects of rising exchange rates and operational leverage from increased sales have further enhanced profitability.
On July 7, Celltrion announced that Begzelma has been included in the formularies of Express Scripts (ESI) and Optum, two of the top three PBMs in the U.S. Notably, it has been designated as a preferred drug in the ESI public and private insurance formularies and the Optum public insurance formulary.
Being listed as a preferred drug enhances prescription accessibility for healthcare providers and reduces out-of-pocket costs for patients, facilitating an increase in prescriptions. The reimbursement for ESI public insurance and Optum has been effective since July 1, while ESI private insurance will begin reimbursement in January 2027.
The U.S. PBM market is highly influential, with the top three companies accounting for about 80% of the total insurance market. Without inclusion in PBM formularies, it is challenging for high-cost drugs to enter the market due to reimbursement limitations.
With this listing, Begzelma has secured over 35% reimbursement coverage in the U.S. insurance market. Celltrion expects to leverage this to expand prescriptions and increase market share.
Market performance is already showing positive results. According to market research firm IQVIA, as of May this year, Begzelma achieved a 10.6% market share in the U.S., marking its first double-digit share since its launch.
Celltrion anticipates that its growth will accelerate as it expands from a focus on open market sales to the insurance reimbursement market. The company plans to continue negotiations for formulary listings with other major PBMs.
A Celltrion representative stated, "With our inclusion as a preferred drug in major U.S. PBMs, we expect a significant increase in prescriptions. We will continue to expand our market dominance through additional PBM listings."
Meanwhile, Celltrion is projected to maintain strong performance this year. According to the company, preliminary consolidated results for the second quarter show revenues of 1.3 trillion won and an operating profit of 430 billion won. This represents a 35.2% increase in revenue and a 77.3% increase in operating profit compared to the same period last year, marking the highest second-quarter performance to date. The operating profit margin improved significantly from 25% last year to approximately 33%, achieving both revenue growth and enhanced profitability.
Analysts attribute this strong performance to the expansion of sales for new biosimilar products. The increasing share of new products like Remsima SC and Omniclon has improved the product mix, leading to an estimated rise in gross profit margin from the mid-50% range last year to the low 60% range this year.
Additionally, the effects of rising exchange rates and operational leverage from increased sales have further enhanced profitability.
* This article has been translated by AI.
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