Biosimilars Could Generate $100 Billion in Savings Over Next Five Years, New Report Finds
WASHINGTON, D.C. — A new report from the IQVIA Institute for Human Data Science has determined that biosimilars are on track to reduce drug costs by $100 billion over the next five years if their use rises. The future of this lower-cost drug market, however, is still uncertain.
According to the report, three recently-launched biosimilars may reach 60 percent volume share by the end of their second year on the market, which would generate an estimated $80 billion in savings in the next five years, including $16-36 billion in 2024 alone.
Despite the success of these biosimilars, progress remains slow. Several barriers, including structural disincentives, market and regulatory dynamics and deliberate disparagement and misinformation are holding the market back. Of the FDA-approved biosimilars, only around two-thirds are on the market and available to patients as a lower-cost option.
This report illustrates what we already know: biosimilars are both a proven solution to reducing health care costs, and an affordable treatment option for patients, providers and insurance companies,” said Juliana Reed, President of the Biosimilars Forum. “But more needs to be done to unlock these savings and generate even more, as much as $250 billion over the next decade. It’s important to acknowledge the true savings potential of these lower-cost treatment options as we reckon with this devastating pandemic and begin to rebuild our economy.
There are currently eight bipartisan policy proposals in Congress that would increase patient access to and use of biosimilars, increasing health care savings by encouraging competition and providing direct cost savings to employers and taxpayers.
For more information on biosimilars policies in Congress visit: supportbiosimilars.com.