What are the potential cost savings that biosimilars can bring to healthcare systems?
US costs in oncology
- Total spending on US cancer care is projected to rise 34% from 2015 to 2030
- Financial management is one of the top concerns of surveyed hospital CEOs
- Biosimilars may help reduce costs in oncology, as they have been associated with $56 billion in savings across all therapeutic areas where they have been introduced (eg, inflammation, supportive care, and oncology) since 2013 and are projected to produce an estimated $181 billion in savings from 2023 to 2027
Increased biosimilar competition has led to decreased price for every therapeutic agent in oncology and supportive care where biosimilars are available
- Oncology therapeutic antibodies: As of 1Q2023, 47%–59% below originator average sales price (ASP) from the time biosimilar was launched
- Supportive care: As of 1Q2023, 38%–68% below originator ASP from the time biosimilar was launched
Extensive use and growing demand for biologics come at a time when there is increasing need for savings and efficiencies within the healthcare system. Biosimilar medicines may provide cost savings for patients who can benefit from biologic medicines. By potentially providing more affordable options, biosimilar medicines can allow for the reallocation of resources to other areas of patient care. In addition, biosimilars could lead to earlier intervention with the appropriate biologic medicines, potentially improving treatment outcomes.
CHANGING THE LANDSCAPE
Potential cost savings from biosimilars to healthcare systems may be substantial
Cost savings to healthcare systems due to biosimilars may be substantial. Biosimilars have been associated with $56 billion in savings since the passage of the Biosimilars Act in 2010 and are projected to produce an estimated $181 billion in savings from 2023 to 2027, based on a January 2023 IQVIA report.
THE POTENTIAL TO IMPROVE OUTCOMES
BIOSIMILARS may offer a number of potential benefits to various stakeholders
Potential of biosimilars for patients, payers, and providers
INCREASED
use ofbiologics
Additional treatment choices at lower cost to the healthcare system
Improved
access andoutcomes
Increase access to biologics, which may lead to improved health outcomes overall
Expanded
options forpatients
A variety of therapeutic options
