Biosimilar boom could save billions, think tank claims
Introducing more biosimilars could cut healthcare spending by $54 billion over the next ten years, a figure far higher than initially thought, a think tank and research organisation has claimed.
According to a report by Rand Corporation, improved analysis methods and a growth in spending has meant that the savings estimate is around 20% higher than it predicted three years ago when the organisation compiled a similar report.
The “Biosimilar Cost Savings in the US” report, published on Tuesday, October 23, predicts that biosimilars will cut spending on biologics by about 3% over the next ten years.
According to the report, although just 1% to 2% of the US’s population is treated with a biologic each year, the drugs accounted for 38% of prescription drug spending in 2015.
Rand calculated the estimate by reviewing the sales history of more than 100 biologic drugs and examining the experience that Zarxio (filgrastim-sndz) has had on the market.
Zarxio, Sandoz’s biosimilar of Amgen’s cancer treatment drug Neupogen (filgrastim), is the highest profile biosimilar drug to be marketed in the US to date. It was approved in 2015.
The report found that while the market share of Zarxio reached a “significant level” by 2016, total spending on both drugs, including Amgen’s biologic, had declined from $931 million in 2013 to $766 million in 2016— an average annual decline of 6.3%.
Andrew Mulcahy, lead author of the study and a policy researcher at Rand, said: “Biologics account for the fastest-growing segment of prescription drug spending, but biosimilars have the potential to help slow some of the increase.”
He added: “The actual savings hinge on the evolving competitive landscape in the pharmaceutical industry, regulatory decisions, and insurer efforts to promote biosimilar uptake through payment rates and other strategies.
“Future research will be needed as more biosimilars come to market to see whether savings are realised and who benefits from any reductions in spending.”
