Biosimilars market value could triple by 2020, says report
The market value for biosimilars around the world could reach $20 billion by the end this year and that figure could nearly triple by 2020, according to a report.
In its “CBR Pharma” report, business intelligence service GBI Research said that the market could reach $55 billion by 2020.
The report, published at the end of last month, said that biologics currently have a value of nearly $200 billion and that these products “may replace 70% of chemical drugs” in the next two decades.
Biosimilars, like generics in the pharmaceutical industry, are versions of biologics that offer a reduced cost compared with their branded counterparts.
According to GBI, growth in the market is primarily driven by a “promising pipeline” in active development as well as government efforts to reduce healthcare spending.
Sumith Ladda, an analyst for GBI, said the low prices of biosimilars, sometimes between 30% and 50% cheaper than branded biologics, could lead to considerable savings in healthcare expenditure.
Bill Baton, partner at law firm Saul Ewing in Newark, said that many US practitioners were paying “close attention” to the overseas developments regarding biosimilars, as some pundits in the US have touted them to be "the next big thing".
“Whether that is so remains to be seen. But given the potential US market, practitioners will continue to monitor the growth of biosimilars as well as any overseas learning that may assist in protecting their clients' interests in the US,” Baton added.
Earlier this year, LSIPR reported that Sandoz’s cancer product Zarxio had become the first biosimilar to be rubber stamped in the US.
Sandoz’s Zarxio is a biosimilar version of Amgen’s Neupogen (filgrastim), an injection that helps to reduce the risk of infection in cancer patients receiving chemotherapy.
It was approved by the US Food and Drug Administration on March 6.
GBI’s report said that while a regulatory framework for biosimilars has been established in major markets, some aspects such as naming conventions need to be harmonised.
