CVS Health announced that it will remove Johnson & Johnson’s psoriasis drug Stelara from its main formularies effective July 1 2026, citing the availability of lower‑cost interchangeable biosimilars such as Sandoz’s Pyzchiva and Biocon Biologics’ Yesintek. The change will shift most members to biosimilar therapy, with the majority paying $0 out‑of‑pocket for their treatment.
Stelara has been a key revenue driver for J&J, generating $10.4 billion in 2024 and $10.9 billion in 2023, and it remains the company’s top‑selling drug. Multiple ustekinumab biosimilars are now commercially available, priced 80–90 % below Stelara’s list price. In Q1 2026, Stelara sales fell 60 % year‑over‑year to $656 million, and in Q4 2024 sales dropped 14.7 % to $2.3 billion, underscoring the erosion of market share caused by biosimilar competition.
J&J’s Q1 2026 earnings beat expectations, with revenue of $24.1 billion and adjusted EPS of $2.70, a $0.04 beat over the $2.66 consensus. The company raised its 2026 outlook, citing strong performance of its oncology drug Darzalex and the immunology drug Tremfya, whose sales grew 74 % in Q1 2026. CEO Joaquin Duato said, “Johnson & Johnson had a strong start to 2026 and is delivering on its promise for a year of accelerated growth and impact.” CFO Joseph Wolk added, “We are seeing increased share in Tremfya and we anticipate we’ll see something similar in the new oral offering.”
CVS Health’s Q4 2025 results showed $105.7 billion in revenue, an 8.2 % year‑over‑year increase, and an adjusted EPS of $1.09. The formulary shift aligns with CVS Caremark’s strategy to drive cost savings through private‑label biosimilars and to support broader, more affordable access to proven therapies. Senior Vice President Joshua Fredell noted, “Expanding adoption of FDA‑approved biosimilars allows us to deliver significant savings for clients while supporting broader, more affordable access to proven therapies.” President and CEO David Joyner said, “Our fourth quarter and full‑year results demonstrate the progress we are making in transforming the health care experience with our unique collection of businesses.”
The market reaction to J&J’s Q1 2026 earnings was muted; analysts highlighted that the strong performance of Darzalex and Tremfya offset the steep decline in Stelara sales. CVS’s move reflects a broader industry trend of payers prioritizing net‑price competition and steering utilization toward lower‑cost biosimilars, a strategy that could accelerate the erosion of J&J’s psoriasis market share.
The decision signals a shift toward biosimilar competition that may erode J&J’s market share and prompt the company to accelerate its value proposition for Stelara and explore new therapeutic indications to offset the potential revenue impact.
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