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In Vitro Methods for Comparing Target Binding and CDC Induction Between Therapeutic Antibodies: Applications in Biosimilarity Analysis
Published on: May 4, 2017
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Projected US savings from biosimilars, 2021-2025
Andrew Mulcahy1, Christine Buttorff, Kenneth Finegold
1RAND Corporation, 1200 S Hayes St, Arlington, VA 22202.
The American Journal of Managed Care
|July 19, 2022
Summary
Biosimilar drugs are projected to save the US $38.4 billion on biologics between 2021 and 2025. Increased biosimilar utilization could lead to even greater savings.
Area of Science:
- Health Economics
- Pharmaceutical Policy
- Biotechnology
Background:
- Biologics represent a growing segment of US prescription drug expenditures.
- Biosimilars offer a pathway to reduce biologic costs through market competition.
- Barriers to biosimilar supply and uptake currently limit their economic impact.
Purpose of the Study:
- To project potential US biosimilar savings from 2021 to 2025 under various market scenarios.
- To quantify the economic impact of biosimilar competition on biologic drug spending.
- To identify factors influencing biosimilar market growth and cost reduction.
Main Methods:
- Utilized IQVIA MIDAS database (2014-2020) for US volume and price data of biologics with existing biosimilar competition.
- Developed a projection model incorporating biosimilar entry, market share, pricing, and reference biologic pricing.
- Calculated projected savings by comparing biosimilar competition scenarios against a baseline of Q4 2020 market conditions.
Main Results:
- Projected biosimilar savings of $38.4 billion (5.9% of total biologic spending) from 2021-2025 under main assumptions.
- New biosimilar entries accounted for $26.1 billion in savings, while market evolution for existing biosimilars contributed $12.2 billion.
- Downward pressure on reference biologic prices, rather than solely lower biosimilar prices, drove $24.6 billion of the projected savings.
- An upper-bound scenario indicated potential savings as high as $124.5 billion.
Conclusions:
- Achieved $38.4 billion in projected biosimilar savings from 2021 to 2025 based on primary assumptions.
- Enhanced biosimilar utilization and promotion of competition within managed care and other healthcare settings can significantly increase cost savings.
- Policy and market strategies should focus on overcoming barriers to biosimilar uptake to maximize economic benefits.
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