While they are highly similar to biologics, biosimilars are less expensive than their originator biologics (discounts vary by market and product), offering the potential to reduce prescription drug costs while providing patients a comparable level of safety and efficacy.1
As of 2023, more than 40 biosimilars have received regulatory approval in the U.S.—and counting.2 These helped create an estimated $13.3 billion in savings for the healthcare system since 2015.3 And biosimilars have proven resilient, with a steadily increasing market share.4
The biosimilars that have entered the market have launched with initial list prices anywhere from 15% to 35% lower than their biologic competitors.5 And a recent study from the RAND Corporation has estimated that biosimilar drugs will produce savings to the U.S. healthcare system of around $38.4 billion from 2021 to 2025, representing 5.9% of total U.S. spending on biologics.
Additionally, a 2023 study from IQVIA on biosimilars in the U.S. found that the market share maintained by originators after biosimilar competition is introduced is correlated with the relative reduction in the price of originator biologic compared to the biosimilar. In other words, biologic drugs generally lose less market share when they have reduced prices to similar levels as their biosimilar competitors.1
This data could mean that as more and more biosimilars are introduced to the U.S. market, biologics manufacturers will be more inclined to lower their average sales prices to maintain their volume, potentially leading to overall lower cost of these drugs, and increasing access to medicines in the US healthcare system.1
Learn more about the key considerations for biosimilars with each of the following groups.
To learn more about the promise of biosimilars, the impact they can create, and our work in this space, visit the following pages:
1. Biosimilars in the United States 2023-2027. IQVIA. https://www.iqvia.com/insights/the-iqvia-institute/reports/biosimilars-in-the-united-states-2023-2027. Published January 31, 2023.
2. Center for Drug Evaluation and Research. Biosimilar Drug Information. U.S. Food and Drug Administration. May 25, 2023. https://www.fda.gov/drugs/biosimilars/biosimilar-product-information.
3. The U.S. Generic & Biosimilar Medicines Savings Report. Association for Accessible Medicines. September 2022. https://accessiblemeds.org/sites/default/files/2022-09/AAM-2022-Generic-Biosimilar-Medicines-Savings-Report.pdf.
4. U.S. biosimilars market size, growth, share: Forecast report, 2029. Fortune Business Insights. https://www.fortunebusinessinsights.com/industry-reports/u-s-biosimilars-market-100990. Published May 2022.
5. Decreasing drug costs through generics and Biosimilars. National Conference of State Legislatures. https://www.ncsl.org/health/decreasing-drug-costs-through-generics-and-biosimilars. Published January 21, 2022.