Samsung Bioepis and Merck & Co., Inc. (NYSE:MRK) have revealed that they have started selling an alternative version of Johnson & Johnson (NYSE:JNJ) Remicade, a drug used to treat rheumatoid arthritis, in the U.S. This is an indication that prices of the drug could come down even further. The Remicade version which will be known as Renflexis will be sold at a 35% discount to Remicade’s list price. This will be about $735 for a dose of 100 milligrams.
Renflexis is not the only Remicade biosimilar that is in existence. Late last year Pfizer launched its own biosimilar known as Inflectra which was initially offered at a discount of 15% to the list price before the discount was lowered to 19%.
Rapid price fall
Last year Remicade posted sales of approximately $4.8 billion in the United States. But following the entry of new competition sales fell to $2.2 billion in the first half of this year. As is the case with most generic drugs, the moment multiple biosimilars are made available, the prices fall very quickly.
Outside the U.S. Merck sells a branded Remicade version. In Europe the drugmaker is encountering competition not only from biosimilar Remicade but also from lower-priced versions of other drugs in the same class.
A lot of pharmaceutical firms are coming up with biosimilar versions of popular and profitable biologic drugs. This includes major biotechnology companies such as Amgen which is developing cheaper versions of blockbuster drugs developed by rivals.
Rebates and discounts
In a statement Johnson & Johnson revealed that it provides various rebates and discounts on Remicade’s list price thus giving the blockbuster drug an average price per 100 milligram vial of $808.87.
The Janssen unit of Johnson & Johnson sought a permanent or preliminary injunction of Bioepis version in the United States on the grounds of patent infringement. The lawsuit is yet to be heard as scheduling has not taken place. Samsung, however, denies the allegations.
“We are confident we do not infringe on Janssen’s patents,” said a spokesperson for Samsung Bioepis.
On Monday shares of Johnson & Johnson fell by 1.70% to close the day at $133.01.
