Competition created in part by biosimilars has led to significant savings for the healthcare system, potentially allowing these savings to be deployed to newer, innovative treatments. Take a deeper dive into the latest data in the eighth edition of Amgen's Biosimilar Trends Report, which examines the current state of the biosimilars marketplace across oncology, inflammation, and nephrology. It also outlines relevant policy and reimbursement updates that impact biosimilar adoption and utilization, as well as key considerations for providers, payers, and policymakers.
Since the first biosimilar entered the US marketplace in 2015, 30 biosimilars have been approved and 21 biosimilars have been launched, providing patients, physicians and payers with a range of treatment options and a greater degree of flexibility of choice.1 As we look ahead, biosimilars can continue to offer more affordable treatment options, drive cost savings through increased competition between biosimilars and with reference biologics, and promote a more resilient US healthcare marketplace.
Sustaining biosimilars growth is critical and dependent upon maintaining appropriate regulatory and competitive mechanisms that will continue to foster a level playing field for all biologics, including biosimilars. This report may help providers, payers, policymakers, and other audiences better understand the critical role biosimilars play in promoting a resilient US healthcare system and how stakeholders can prepare for, and help drive, rapid expansion of the US biosimilars marketplace.
Biosimilars have gained significant share in the majority of therapeutic areas where they have been introduced.2
Due to competition, the average sales prices (ASPs) are declining for both reference products and biosimilars over time, which can lead to additional healthcare savings.3
Expected marketplace advancements include expansion of biosimilars in pharmacy benefit reimbursement, biosimilars in more classes and approval of the first interchangeable biosimilar in the US.
Other important factors for driving biosimilar adoption include a high-quality, reliable supply of biosimilars, and understanding provider and payer decision-making drivers.
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The US marketplace for biosimilars is accelerating across multiple therapeutic areas despite a slight approval slowdown in 2020 likely due to COVID-19.
In therapeutic areas with biosimilars launched between 2019-2021, the average share was 65%. For therapeutic areas with biosimilars launched prior to 2019, the average share after two years was 13%.
Key: ESA – erythropoiesis-stimulating agent.
Source: OBU Customer Data Pack Weekly5
The cumulative savings in drug spend for classes with biosimilar competition is estimated to have been $9.8 billion over the past 5 years.
Key: ASP – average sale price.
Note: Filgrastim is excluded from figure because the first biosimilar in its class was launched in 2013 and data are not available prior to Q2 2016 for normalized units.
The quarterly drug spend for each product is estimated as: Drug spend = ASP x Normalized unit volume. The estimated spend for the reference product (after biosimilar launch) is trended out based on historical spend for the reference product before biosimilar launch.
Sources: Analysource, Integrated Weekly Sales Data7
Competition usually results in lower ASP for both reference products and biosimilars, leading to additional opportunity for healthcare savings.
The prices of biosimilars are decreasing at a CAGR of 9% to 19%, while the prices of most reference products are also decreasing at a CAGR of 4% to 17%.
References : 1. Xcenda 2021 2. DOF Market Trends 2021 3. DOF WAC 4. DOF Market Trends 2021 5. IQVIA DD + Chargeback 6. DOF Biosimilars Spend Analysis 2021 7. IQVIA DDD + Chargeback 8. DOF WAC and ASP Price 2021