New Report Finds Biosimilars Could Save States Billions of Dollars Annually
Interactive Tool Shows State-by-State Cost-Saving Potential of Biosimilars
The Biosimilars Forum, in partnership with the Pacific Research Institute (PRI), released a report and interactive tool highlighting the billions of dollars that biosimilars can save states. Californians could save more than $1 billion annually with a 75 percent biosimilar market share. Similarly, Floridians could save more than $960 million, and Texans and New Yorkers could save more than $820 million.
The new report and interactive savings tool highlight projected state savings for patients, taxpayers, and employers associated with a 75 percent adoption rate of biosimilars, which could result from commonsense, bipartisan policy changes.
“By increasing biosimilar competition, states stand to save billions if policymakers enacted simple reforms to foster a more robust biosimilars market,” said Meaghan R. Smith, executive director of the Biosimilars Forum. “Increasing biosimilar use among physicians and patients will require a commitment from our lawmakers to remove the anti-competitive barriers to biosimilar uptake and minimize disincentives. Without competition from biosimilars, the cost of biologics will continue to increase and limit access to treatment for patients.”
The State One-Pager Builder allows users to learn how much all 50 states could save at a 75 percent biosimilar market share.
A biosimilar is a biologic product that is approved based on the demonstration of a high degree of similarity to an FDA‐approved biologic product, known as a reference product, and that it has no clinically meaningful difference to the reference product in terms of safety and effectiveness. Biosimilars are used to treat many conditions, including cancer, diabetes, Crohn’s disease, and arthritis.
Since the first biosimilar was made available to U.S. patients in 2015, 31 biosimilars have been approved by the FDA and 20 are on the market. As the next generation of generic medicines, biosimilars cost on average 30 percent less than reference biologics, which account for 40 percent of all drug spending.
Research has found that biosimilars saved Americans nearly $8 billion last year alone.
Support for biosimilars continues to grow on Capitol Hill and in the Biden Administration. Several months ago, President Biden issued an Executive Order directing the U.S. Department of Health and Human Services to take steps to promote biosimilar competition, and bipartisan legislation in the House and Senate continues to build momentum.
To learn more about these policy efforts, visit: www.biosimilarsforum.org.