Biosimilars Forum Statement on Tariffs Impacting Low Cost Medicines

Juliana M. Reed, executive director of the Biosimilars Forum, released the following statement following the Trump Administration’s notice of a Section 232 national security investigation of imports of pharmaceuticals and pharmaceutical ingredients.

“In order for biosimilars to offer cost-savings of up to 85% discounts on reference product medicines, the industry has had to design and implement one of the most efficient supply chains and manufacturing processes in the world. The Biosimilars Forum welcomes a national conversation into strengthening the pharmaceutical supply chain to ensure all Americans—under all circumstances—can get the medicines they need. However, we are concerned that following this investigation, tariffs on pharmaceuticals could raise prices for patients, exacerbate drug shortages, and dangerously disrupt supply chains for life-saving medicines, including biosimilars.

“Biosimilars are a cornerstone, free-market solution to affordable U.S. healthcare—offering patients safe, effective, and lower-cost treatments options for cancer, diabetes, arthritis, Crohn’s Disease, and more. Biosimilars are a unique solution for President Trump, his Administration, and Congress to deliver on his mandate they received to reign in burdensome healthcare bureaucracy and out-of-control spending in Medicare. Biosimilars generate billions in cost-savings for the Medicare program and have saved the U.S. healthcare system $56 billion, with the potential to save an additional $181 billion in the next five years.

“Tariffs that directly target the biosimilar supply chain—from the original ingredients to the finish products—could threaten the future viability and existence of the biosimilars industry. Already, U.S. biosimilar manufacturers spend 8 to 10 years and close to $300 million for each biosimilar they develop—which are, on average, more than 50% lower-cost than the originator biologics they reference. Worse, there is as a ‘biosimilar void’ comes increasingly into view: despite 118 reference biologics expected to lose patent protection over the next decade, only 12 currently have a biosimilar in development.

“The Forum stands ready to work with the Administration to further our shared goals – from promoting free market competition to providing lower expenditures for government healthcare programs to ensuring taxpayers, veterans, and small businesses have the treatment options they need at prices they can afford. The Administration has an opportunity to support the biosimilars industry as a key component to make American Healthy Again and save Americans and the government billions of dollars.”

For more information on the Biosimilars Forum’s work to increase access to lower-cost biosimilars, visit biosimilarsforum.org.

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MEDIA CONTACT:

Scott Lusk

Signal Group, EVP 202-288-3233; slusk@signaldc.com