Waltz Health and Fresenius Kabi are moving to offer three biosimilars through a direct-to-payer model, bypassing traditional wholesaler and pharmacy benefit manager rebate channels entirely.
The partnership represents a significant shift in how biosimilars reach patients, stripping out layers of the supply chain that have long been criticised for inflating drug costs.
By going direct to payers, the two companies aim to make biosimilar pricing more transparent and competitive in a market where rebate structures have historically obscured true costs.
Pharmacy benefit managers, known as PBMs, have played a dominant role in determining which drugs reach patients through their formulary decisions and rebate negotiations with manufacturers.
Critics of the traditional model argue that PBM rebate arrangements can actually disadvantage lower-cost biosimilars by favouring branded drugs that generate larger rebate payments.
Waltz Health has positioned itself as a disruptive force in pharmaceutical distribution, building infrastructure designed to connect drug manufacturers more directly with those footing the healthcare bill.
Fresenius Kabi, a global healthcare company with a significant biosimilars portfolio, brings manufacturing scale and product credibility to the partnership with Waltz Health.
The decision to route three biosimilars through this direct channel signals growing industry appetite for distribution models that reduce friction and cost between manufacturer and payer.
Biosimilars have long been touted as a key lever for reducing healthcare spending, but their uptake in the United States has been slower than in European markets, partly due to channel complexity.
Direct-to-payer models could help address that uptake challenge by making biosimilar economics clearer and more attractive for health plans making formulary decisions.
The move by Waltz Health and Fresenius Kabi may prompt other biosimilar manufacturers to reconsider their own distribution strategies as pressure mounts to demonstrate cost savings to payers.
If successful, the model could prove a template for broader pharmaceutical distribution reform at a time when drug pricing remains a highly charged political and commercial issue.