New Analysis Confirms Increased Use of Biosimilars Can Save U.S. Up to $71 Billion Over a Decade
WASHINGTON, D.C. (July 11, 2019) – Following the release of the Pacific Research Institute’s (PRI) latest issue brief entitled “Incenting Competition to Reduce Drug Spending: The Biosimilar Opportunity” by Wayne Winegarden, the Biosimilars Forum President, Juliana Reed, today issued the following statement:
“This report makes clear a robust biosimilars market can significantly reduce U.S. health care costs and save as much as $7.2 billion annually for our nation’s most vulnerable patients and burdened taxpayers. However, the very future of U.S. biosimilars is in question due to market barriers that are impeding their growth. As innovator biologics continue to monopolize the market, Congress can enact simple policies that would directly reduce patients’ out-of-pocket costs and encourage physicians to increase use of these lower cost therapies -- creating a more competitive marketplace that benefits American’s pocketbooks.”
“Biosimilars are innovative medications that can treat patients at lower costs,” said Dr. Wayne Winegarden, director of PRI’s Center for Medical Economics and Innovation and author of the issue brief. “Our research shows that as their market share increases, biosimilars can lead to billions in savings for patients, health providers, and taxpayers – while also helping to treat some very serious illnesses.
PRI’s issue brief, analyzed the seven, patient-accessible biosimilars in the U.S. and calculated the current and potential savings biosimilars could unlock if they represented 25%, 50% and 75% of the market. It also identified three factors that are impeding biosimilar growth in the U.S. market.
According to the analysis, in one year, patient-accessible biosimilars currently representing just 2.3% market share have already saved the U.S. $253.8 million dollars. Should biosimilars achieve 25% market share, the U.S. could annually reduce spending by as much as $2.5 billion. And, if biosimilars attain 75% market share it could unlock savings as high as $7.2 billion annually–just by increasing use of biosimilars already on the market.
“Unfortunately, misguided public policies are standing in the way of the greater use of biosimilars,” said Winegarden. “Policymakers must make reform a priority so more patients can utilize biosimilars to lead healthier lives, and more savings can be realized.”
Click here to read PRI’s report. To learn more about the Forum’s proposed policy options that can strengthen the U.S. biosimilar market and can unlock billions in health care savings visit https://supportbiosimilars.com/policies/.