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Updated: Jun 18, 2025
07:25
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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Biosimilar underutilization alone does not foretell a broken biologics market
Fariel LaMountain1, Molly T Beinfeld1, William Wong2
1Center for the Evaluation of Value and Risk in Health, Institute for Clinical Research and Health Policy Studies, Tufts Medical Center, Boston, MA 02111, United States.
Health Affairs Scholar
|July 29, 2024
Summary
Biosimilar competition can lower biologic drug prices, but originator strategies influence market share. Sole preferred coverage for originators maintained their market position compared to non-sole preferred strategies.
Area of Science:
- Health Economics
- Pharmaceutical Policy
- Biologics and Biosimilars
Background:
- Biosimilars promise cost savings and wider access to biologic therapies.
- Concerns exist regarding the pace of biosimilar adoption in the market.
Purpose of the Study:
- To analyze the link between biosimilar and originator pricing, coverage, and market share.
- To evaluate the impact of different coverage strategies on biosimilar uptake and originator market retention.
Main Methods:
- Examined four case studies of biologic product families.
- Categorized coverage strategies into 'sole preferred' (originator favored) and 'non-sole preferred' (both favored).
- Assessed average sales price (ASP) reductions and market share changes post-biosimilar introduction.
Main Results:
- Originators employing a sole preferred coverage strategy retained formulary preference and market share more effectively.
- Market-weighted ASPs significantly decreased for all product families after biosimilar entry, irrespective of strategy.
- Steep ASP reductions (≥50%) characterized the sole preferred strategy, while moderate reductions occurred with non-sole preferred strategies.
Conclusions:
- Coverage strategies significantly impact originator market share and pricing dynamics in the face of biosimilar competition.
- While biosimilar introduction drives price reductions, market share and uptake alone may not fully capture the extent of market competition and cost savings.
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