The momentum for bringing biosimilars to market is stronger than ever as the industry looks for solutions to contain escalating specialty drug costs.
Since the first biosimilar was approved in the U.S., biosimilars have been primarily focused on oncology and, to a lesser extent, rheumatology and inflammatory conditions. However, over the next five years, there is potential to bring biosimilars to a broader patient population across other disease states.
In addition, the FDA reported as of November 2024, there are over 100 biosimilars* in development offering tremendous opportunity for increased competition and savings in the years ahead.
What does this mean for plan sponsors and plan members?
Price competition
Lower priced biosimilars tend to have a downward effect on the prices of the reference products through price competition. The introduction of Infliximab biosimilars for Remicade, for example, have driven down its price by more than 50% in just 5 years. Keep in mind, however, that biosimilar savings expectations are not yet comparable to traditional drugs and the generic availability we often see with brand patent expirations. While biosimilars are posed to bring excellent savings opportunities, they cannot be compared to results we see with generics.
Expanded treatment options
Increased use of biosimilars offers expanded treatment options to plan members. Because biosimilars possess the same clinical efficacy, they can offer additional, and potentially more affordable, treatment.
Increased access
Since biosimilars are biologic products (produced from living cells), biosimilar medicines may provide increased access for patients who can benefit from biologic medicines when traditional drug therapy does not achieve a goal.
Of course, market events continue to change and evolve and there are a wide range of outcomes possible. CarelonRx routinely monitors the biosimilar market for the best options for our plan members and plan sponsor clients.
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