CVS Health Helps Customers Accelerate Biosimilar Adoption Through Formulary Changes - Supporting Affordable Options for Osteoporosis Care

Rhea-AI Summary

CVS (NYSE: CVS) will add osteoporosis biosimilars Ospomyv and Stoboclo and generic teriparatide (Bonsity, Tymlos) to major national commercial template formularies effective April 1, 2026, replacing Prolia and Forteo to expand lower-cost options.

The preferred biosimilar approach is stated to be over 50% lower cost per prescription; CVS Caremark cites $1.5 billion in gross savings to date and a 96% Humira-to-biosimilar transition rate for client members.

Positive

• Preferred biosimilars priced >50% lower per prescription
• $1.5 billion in gross savings realized from biosimilar strategy
• 96% transition rate of Caremark Humira members to biosimilars

Negative

• Biosimilars require special handling, creating supply chain and shortage risks
• Formulary substitutions may impose short-term patient/provider transition burdens

News Market Reaction

+1.45%

1 alert

+1.45% News Effect

On the day this news was published, CVS gained 1.45%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Current price: $75.13 Cost reduction: over 50% lower Biosimilar savings: $1.5 billion +2 more

5 metrics

Current price $75.13 Pre-news trading level for CVS shares

Cost reduction over 50% lower Preferred biosimilar approach vs original brand cost per prescription

Biosimilar savings $1.5 billion Gross savings from Caremark biosimilar formulary strategy to date

Humira transition rate 96% Caremark client members using Humira transitioned to a biosimilar

Formulary effective date April 1, 2026 Start of osteoporosis biosimilar and generic formulary changes

Market Reality Check

Price: $78.28 Vol: Volume 9,571,962 is sligh...

normal vol

$78.28 Last Close

Volume Volume 9,571,962 is slightly below 20-day average of 10,606,602 (relative volume 0.9). normal

Technical Trading above 200-day MA of 72.16 with current price at 75.13.

Peers on Argus

CVS is down 2.07% while key peers show mixed moves: CI, ELV, HUM up modestly, CN...

CVS is down 2.07% while key peers show mixed moves: CI, ELV, HUM up modestly, CNC and MOH down. No broad, aligned sector move indicated.

Historical Context

5 past events · Latest: Jan 23 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 23	Emergency preparedness	Positive	+0.4%	Emergency measures and refill flexibility ahead of a major winter storm.
Jan 22	Access and savings	Positive	+1.5%	Initiatives to simplify care, reform prior authorizations, and lower costs.
Jan 15	Earnings call notice	Neutral	+2.6%	Scheduling fourth quarter and full-year 2025 earnings conference call.
Jan 14	Community health grant	Positive	-1.7%	$2.6M grant to expand maternal diabetes program in NYC communities.
Jan 9	Earnings call notice	Neutral	-0.4%	Announcement of upcoming Q4 and full-year 2025 earnings call and webcast.

Pattern Detected

Recent CVS headlines, often about access and cost savings, have generally aligned with modest positive price reactions, with one notable divergence on a philanthropic initiative.

Recent Company History

Over the last month, CVS reported community support for a winter storm on Jan 23, 2026, cost- and access-focused insurance initiatives on Jan 22, 2026, and scheduled earnings calls on Jan 9 and Jan 15, 2026. A $2.6 million diabetes grant was announced on Jan 14, 2026. Most of these news items saw modest positive price reactions, though the diabetes grant coincided with a decline, showing that socially positive news does not always translate into near-term price gains.

Market Pulse Summary

This announcement underscores CVS’s strategy to use formulary design to lower drug costs, extending ...

Analysis

This announcement underscores CVS’s strategy to use formulary design to lower drug costs, extending its biosimilar approach into osteoporosis with over 50% lower prescription costs and reported $1.5 billion in biosimilar-related savings. The move builds on a 96% transition rate from Humira to biosimilars and fits recent initiatives to simplify care and reduce expenses. Key factors to watch include member uptake of the new options, payer responses, and how upcoming earnings updates reflect the financial impact of these formulary changes.

Key Terms

biosimilars, drug formulary, pharmacy benefit manager, specialty drug, +2 more

6 terms

biosimilars medical

"CVS Health today announced new steps to further help customers expand adoption of lower-cost biosimilar medications."

Biosimilars are medicines made to be highly similar to an already approved biological drug produced from living cells, with no meaningful differences in safety or effectiveness. They matter to investors because they introduce lower‑cost competition to expensive biologic treatments—similar to how generic drugs compete with brand drugs—but involve more complex manufacturing, regulatory review and patent risk, which can affect market share, pricing and profit margins across the sector.

drug formulary technical

"What is a drug formulary?A drug formulary is a continually updated list of preferred medications"

A drug formulary is a curated list of medications that a health insurer, hospital system, or pharmacy network agrees to cover or prefer for prescribing. Like a supermarket choosing which brands to stock, formularies shape which drugs patients can access easily and at what out‑of‑pocket cost, so changes in formulary status can materially affect a medicine’s sales, pricing negotiations, and the financial outlook for companies that make those drugs.

pharmacy benefit manager financial

"Caremark was the first pharmacy benefit manager to exclude reference brand Humira from our commercial template formulary"

A pharmacy benefit manager (PBM) is a company that manages prescription drug plans for health insurance providers, employers, and other organizations. They negotiate prices with drugmakers, decide which medicines are covered, and handle the distribution of prescriptions. For investors, PBMs are important because they influence healthcare costs and profit margins in the pharmacy industry.

specialty drug technical

"Like Humira and its biosimilars, Prolia is a specialty drug dispensed by CVS Specialty."

Drugs used to treat complex, chronic, or rare medical conditions that often require special storage, administration, or monitoring and typically cost much more than ordinary medicines. For investors, specialty drugs matter because they can generate high revenue per patient and stronger pricing power—like a custom-tailored product versus an off-the-rack item—but also carry greater regulatory, reimbursement, and supply risks that can affect a company’s earnings.

electronic health record technical

"communicating with them in their electronic health record workflow and sending a new prescription"

A digital version of a patient’s medical chart that collects health information — diagnoses, medications, lab results, imaging and doctors’ notes — in one place so authorized clinicians can view and update it. For investors, electronic health records matter because they drive revenue and costs for companies that build, sell or rely on them, influence how quickly care is delivered, and create opportunities (and risks) tied to data access, software updates, regulation and patient privacy. Think of it as an online file cabinet for health that affects how the healthcare system runs and spends money.

FDA-approved regulatory

"Ospomyv and Stoboclo are FDA-approved for the treatment of osteoporosis in high-risk individuals"

FDA-approved means a medical product, drug, device or treatment has passed the U.S. Food and Drug Administration’s review for safety and effectiveness for a specific use. Think of it like a formal safety and performance seal that allows the product to be marketed for that purpose in the U.S.; for investors, approval reduces regulatory uncertainty, enables sales and reimbursement pathways, and can materially affect a company’s revenue prospects and valuation.

AI-generated analysis. Not financial advice.

WOONSOCKET, R.I., Feb. 5, 2026 /PRNewswire/ -- CVS Health® (NYSE: CVS)  today announced new steps to further help customers expand adoption of lower-cost biosimilar medications. Effective April 1, 2026, CVS Caremark will begin offering osteoporosis biosimilars Ospomyv and Stoboclo, as well as generic teriparatide, Bonsity, and Tymlos on major national commercial template formularies. These medications will replace Prolia and Forteo, giving customers and their members more affordable options with strong clinical and supply confidence. This preferred biosimilar approach is over 50% lower in costs per prescription than the original brand.

What is a drug formulary?

A drug formulary is a continually updated list of preferred medications and related products supported by current evidence-based medicine, judgment of physicians, pharmacists and other experts.

How does CVS Caremark help customers use a formulary to drive savings?

CVS Caremark helps customers use a formulary to help manage costs while making sure that their members have access to clinically appropriate medications. In much the same way that generic drugs are used as alternatives to branded drugs, biosimilars offer quality, safe, and effective treatment options that have no clinically meaningful difference from their reference products.

How is CVS Caremark helping to improve the use of biosimilars?

This formulary change builds on steps Caremark previously took to exclude reference brand Humira from its template formulary and include lower list price biosimilars.

"Caremark was the first pharmacy benefit manager to exclude reference brand Humira from our commercial template formulary in favor of biosimilars priced dramatically less than the branded product," said Ed DeVaney, President, CVS Caremark. "The results of our industry leadership in this category illustrate the value we can deliver when we can leverage our tools to drive competition. To date, our biosimilar formulary strategy has helped customers and their members realize $1.5 billion in gross savings."

CVS Caremark has proven experience in supporting biosimilar adoption, helping 96% of Caremark's client members using Humira to transition to a biosimilar.

How is CVS Specialty making care simpler?

Like Humira and its biosimilars, Prolia is a specialty drug dispensed by CVS Specialty. As is done for all CVS Specialty patients who experience changes to their plan formulary, CVS Specialty proactively reaches out to both the prescriber and the patient to inform them about the formulary change, describe the process for providers to submit a new prescription for a covered alternative and keep the patient updated about the process.

"When a CVS Specialty patient's plan formulary changes, our advanced technology capabilities allow us to streamline the process for the doctor by communicating with them in their electronic health record workflow and sending a new prescription that can be approved with a single click," said Lucille Accetta, RPh, MPH, MBA, Senior Vice President & Head of CVS Specialty Operations, CVS Health. "We also work to deliver a frictionless experience for the patient by proactively communicating with them digitally or over the phone – based on their preferences – to inform them of the changes, answer their questions and educate them about the new medication."

What are biosimilars and what do these biosimilars treat?

Biosimilars are often injectable medications that treat complex chronic conditions and require special handling such as temperature control. These factors make drug shortages and supply chain issues particularly challenging for biosimilars and underscore the importance of a reliable supply of medication for the patient.

The Prolia biosimilar options now included on Caremark's template formulary are Ospomyv, brought to market by Cordavis Limited, and Stoboclo, manufactured by Celltrion, Inc.

Ospomyv and Stoboclo are FDA-approved for the treatment of osteoporosis in high-risk individuals, as well as increasing bone density in men and women undergoing certain cancer treatments. Treating osteoporosis is crucial to prevent painful and debilitating fractures, which can lead to loss of independence, disability, and even death, particularly in older adults. These effective alternatives for osteoporosis offer patients affordable options with the same clinical benefits—increasing access to lifechanging medications.

About CVS Health
CVS Health® is a leading health solutions company building a world of health around every consumer, wherever they are. As of September 30, 2025, the Company had approximately 9,000 retail pharmacy locations, more than 1,000 walk-in and primary care medical clinics and a leading pharmacy benefits manager with approximately 87 million plan members. The Company also serves an estimated more than 37 million people through traditional, voluntary and consumer-directed health insurance products and related services, including highly rated Medicare Advantage offerings and a leading standalone Medicare Part D prescription drug plan. The Company's integrated model uses personalized, technology driven services to connect people to simply better health, increasing access to quality care, delivering better outcomes, and lowering overall costs.

Media Contact:

David Whitrap

david.whitrap@cvshealth.com

 

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SOURCE CVS Health

FAQ

What formulary change did CVS announce for osteoporosis drugs effective April 1, 2026 (CVS)?

CVS will add osteoporosis biosimilars Ospomyv and Stoboclo and generic teriparatide to template formularies on April 1, 2026. According to the company, these alternatives will replace Prolia and Forteo to provide lower-cost clinical options for members.

How much cheaper are the preferred biosimilars compared with the original brands (CVS)?

The preferred biosimilar approach is described as over 50% lower in cost per prescription versus the reference brand. According to the company, that price gap is intended to expand access and lower member out-of-pocket costs.

What savings has CVS Caremark reported from its biosimilar formulary strategy (CVS)?

CVS Caremark reports $1.5 billion in gross savings from its biosimilar strategy to date. According to the company, those savings reflect formulary design and transitioning members from higher-price reference biologics to biosimilars.

How will CVS Specialty support patients and prescribers after the formulary change (CVS)?

CVS Specialty will proactively contact prescribers and patients to manage transitions and send new prescriptions through EHR workflows. According to the company, this aims to simplify approvals and keep patients informed based on their communication preferences.

Are there risks to access with CVS adding biosimilars to its template formulary (CVS)?

Yes. Biosimilars often need temperature control and complex handling, raising supply chain and shortage risks. According to the company, reliable supply management is important to avoid disruptions for patients relying on injectable therapies.