CVS Health announced on May 5, 2026 that it will remove Johnson & Johnson’s psoriasis drug Stelara from its most common commercial template formularies effective July 1, 2026. The company will instead prefer lower‑cost interchangeable biosimilar alternatives Pyzchiva and Yesintek for most members.
The move follows a steep decline in Stelara sales driven by biosimilar competition. Stelara’s global revenue fell from $10.86 billion in 2023 to $6.1 billion in 2025, a 42.7% drop, and Q1 2026 sales were down 60% year‑over‑year to $656 million. The biosimilar entrants have captured market share by offering discounts of 46% to 90% off Stelara’s list price, with Pyzchiva launched at 80% lower and Yesintek at 90% lower wholesale cost.
CVS’s decision aligns with its broader biosimilar strategy, which previously excluded Humira from its formularies and generated $1.5 billion in gross savings. By favoring interchangeable biosimilars, CVS aims to deliver significant cost savings for plan sponsors while maintaining clinical quality, a goal echoed by senior vice president Joshua Fredell, who said the adoption of FDA‑approved biosimilars “allows us to deliver significant savings for clients while supporting broader, more affordable access to proven therapies.”
The formulary change is expected to accelerate the decline in Stelara’s market share and further reduce J&J’s revenue from the drug, while providing members with access to therapies that can be covered at a fraction of the cost. For CVS, the shift supports its PBM cost‑control agenda and could contribute to the company’s ongoing efforts to improve margins in its Health Care Benefits segment.
CVS Health’s Q1 2025 results showed total revenues of $94.6 billion, up 7.0% year‑over‑year, and Q4 2025 revenues of $105.7 billion, up 8.2% year‑over‑year, underscoring the company’s ability to grow revenue while managing costs. The formulary decision is part of the company’s 2026 guidance, which projects adjusted EPS of $7.00‑$7.20, reflecting confidence in continued cost savings from biosimilar adoption.
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