Joseph P. Fuhr, Jr, PhD, professor emeritus, Widener University, looks to evidence from Europe to predict US biosimilar cost-savings. 

Will biosimilars generate a significant cost savings in the US?

The discount for biosimilars has been around 15% for the first 2 (products), and this is what happened in Europe in the beginning. In the case of Europe, it has generally been tenders which have resulted in decreases, which are equivalent to our exclusive arrangements. (These arrangements) will develop over time in the US. So far, there’s only 1 biosimilar for a given reference product in the generic market. When only 1 competitor exits, price doesn’t decrease that much, so it is an evolving process. In Norway, where they had a 70% discount, there were 2 biosimilar companies and the originator bidding for the tendered contract. More competition will lead to lower prices, but it will take time for the market to evolve.

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Joseph P. Fuhr, Jr, PhD, professor emeritus, Widener University, looks to evidence from Europe to predict US biosimilar cost-savings.

Dr Joseph Fuhr: Competition from Biosimilars Will Lead to Lower Prices Over Time

What will be the immediate economic impact of biosimilars?

In the next few years I see very little economic impact (of biosimilars). There are currently 2 in the market and they are both risk launches. All are involved in various patent disputes and the Supreme Court is looking at 2 issues concerning the 180-day notice of entry and the other concerning whether the patent dance is mandatory. 

As with any new industry, [biosimilars] will take time to develop and so their economic impact will be minimal.

Joseph P. Fuhr, Jr, PhD, professor emeritus, Widener University, sees a limited economic impact for biosimilars given current patent disputes.

Dr Joseph Fuhr: The Immediate Economic Impact of Biosimilars May be Limited

Joseph P. Fuhr, Jr, PhD, professor emeritus, Widener University, sees value in stakeholder education about biosimilar products.

How important is stakeholder education on biosimilars?

It is important to educate healthcare professionals and patients concerning biosimilars. For me, the most important would be the payers, who have the incentive to inform people about highly similar low-cost alternatives. Payers are the agents of subscribers. Also, physicians need to educate patients. So, consumers should gain through competition from biosimilars. The better educated the physicians are, the more they will be willing to prescribe biosimilars. Unless it is an interchangeable biologic, there will be automatic substitution at the pharmacy level. thus, biosimilars must be directly prescribed by physicians.

However, many biosimilars are physician or hospital-administered, in which case the physician will pick the drug they want. As long as physicians believe the products are highly similar and there are no clinical differences, they can benefit with bundling or value-based pricing by cutting costs and keeping some of the savings.

Videos

Dr Joseph Fuhr: Competition from Biosimilars Will Lead to Lower Prices Over Time

Dr Joseph Fuhr: The Immediate Economic Impact of Biosimilars May be Limited

Dr Joseph Fuhr: Biosimilar Competition Can Yield Consumer Savings