CVS Health to Remove J&J's Stelara from Main Formularies in Favor of Biosimilars

Key Facts

CVS Health has announced it will remove Johnson & Johnson's drug, Stelara, from its primary drug formularies starting July 1, prioritizing lower-cost biosimilars. This strategic shift follows a strong first-quarter performance where profit and revenue exceeded expectations, bolstered by the Aetna insurance unit and increased earnings in its pharmacy management business. Consequently, the company raised its 2026 adjusted earnings outlook to a range of $7.30 to $7.50 per share. CVS Health attributed this raised forecast to improved medical cost controls within its government-sponsored health plans. The move underscores the company's commitment to reducing drug spending while leveraging operational efficiencies to drive growth. While the decision impacts J&J's top-selling drug, the updated guidance reflects CVS's robust momentum in managing medical costs and pharmacy margins.

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