Biosimilars have saved the healthcare system $21 billion
Biosimilars have saved the healthcare system $21 billion over the past six years, according to a recent report from Amgen.
Nearly 40 biosimilars received regulatory approval during this period, with 22 products launched. The report found that these biosimilars gained significant market share during this period and argued that the additional competition could result in significant cost savings for the healthcare sector, leading to more resources being allocated to innovative treatments.
The report found that the average selling price of reference products and biosimilars has declined since 2015. For biosimilars, the price has declined at a negative compound annual growth rate of -9% to -24%, while benchmark products fell at a negative CAGR of -4% to -21%.
During the second quarter of 2022, Amgen estimated that total drug spending savings reached $3.2 billion.
Meanwhile, the rate of adoption of biosimilars has increased over the past few years, with early drugs to be launched accumulating greater market share compared to later entrants, according to the report.
Additionally, Amgen postulated that biosimilars are poised to transform the US market and the company is positioning itself to build trust in these drugs as a treatment option among patients, providers and pharmacists.
“Over the next few years, the growing number of commercially available biosimilars is expected to change the treatment landscape, providing more options while creating much-needed space for innovation in the healthcare system,” said Jen. Norton, vice president of US value and access at Amgen. , said in a statement. “We expect to see further expansion of biosimilars in pharmaceutical benefit reimbursement, launches in more therapeutic areas, and the approval of additional interchangeable biosimilars.”
Amgen’s study was released less than two weeks after a report by the Association for Accessible Medicines estimated that generic drugs and biosimilars saved the healthcare system $373 billion in 2021. The study highlighted the effects of biosimilars like Yusimry, the cheaper version of Humira, on reducing autoimmune disease expenditures.
In its report, Amgen said there could be at least seven Humira biosimilar launches next year.
Looking ahead, the report indicates that there will be an expansion of biosimilars in pharmaceutical benefit reimbursement as well as biosimilars in more therapeutic classes.