Boehringer-Ingelheim had a big layoff in 2024 due to disappointing sales of Cylteza, a biosimilar to Humira(adalimumab). Why? Because drug reimbursement process is much more complicated than people think. To battle biosimilars, Abbvie aggressively negotiated with pharmacy benefit managers to keep Humira on formularies. This made it very difficult for biosimilars to get preferred status, and consequently difficult to make sales. Humira is still the darling for many companies to come up with biosimilars. As you can see, it is not as easy as it seems. The current trend is going toward GLP-1s. Eli Lilly and Novo Nordisk have already started to aggressively negotiating with insurance companies to block biosimilars and compounding pharmacies. A company can’t revolve around just making copycat drugs. Biotech is tech. To survive in tech, companies have to innovate and bring something unique to the market and preferably a large market. Just something to keep in mind.