EQRX Initiation Brings New Perspective on Market Access/Biosims/IRA

Following a busy week of conferences, we wanted to highlight a recent initiation of coverage from Eric Percher & team of EQRX.  The long-form report highlights the depth of Nephron’s coverage model and gives us the opportunity to apply our market access and supply chain perspective to a pharma manufacturer, albeit one with a unique commercial model and potentially significant implications for PBMs and Payors (E.g., early partnership with CVS and BCBS plans).

  •  We picked up EQRX at a Buy rating while acknowledging a broad range of scenarios for the development and commercial models (downside scenario of $0, upside scenario of $13), but highlight this initiation as a catalyst for a conversation that goes well beyond a few manufacturers (I.e., EQRX and competing products from AZ, Roche, Merck and BMS).
  •  The note explores unique attributes of Medical and Pharmacy benefit design and incentives that are applicable not just to a low cost ‘EQRx’ model but also to biosimilar Humira (which we view as a potential headwind, not tailwind, for PBMs CVS, CI and UNH/Optum) and IRA/Drug Reform (which we view as neutral to the supply chain but more negative for pharma than is widely appreciated).

Please email info@nephronresearch for more information on access to this report and Nephron Research.