IQVIA Institute for Human Data Science Study: Biosimilars Reach Inflection Point – On Track to Reduce Drug Costs by $100 Bn Over Next Five Years
- Patients are seeing the benefits of biosimilars in the form of lower out-of-pocket costs, depending on their insurance plan design
- Recent biosimilar launches of bevacizumab, trastuzumab and rituximab are set to reach nearly 60% volume share by the end of their second year on the market, significantly higher and faster than prior biosimilars
Biosimilars could reach
$80 billionin aggregate sales over the next five years, including $16-36 billionin 2024
The development and approvals of biosimilars have been accelerating in the
“Contrary to some predictions, biosimilars are not a failed concept; they are in fact becoming a growing part of affordable treatment options available to payers, physicians and patients,” said
Recent launches of biosimilar bevacizumab, trastuzumab and rituximab are set to reach nearly 60% volume share by the end of their second year on the market, significantly higher and faster than prior biosimilars. The growing willingness by stakeholders across the
A few key highlights of the report include:
Savings enabled by the presence of biosimilars are modeled to exceed
$100 billionin aggregate over the next five years, though volume and price dynamics remain volatile and significant uncertainty remains.
- Price declines for biosimilars significantly vary but are in line with prior IQVIA assumptions of roughly 30% discounts. Higher discounts have occurred, for many biosimilars, and an increase in the average discount is possible in the future.
- The introduction of biosimilars in some cases has triggered 2-4% incremental demand for the molecules, bringing biologic treatments to more patients.
Patients benefit from use of biosimilars in the form of lower out-of-pocket costs, depending on their insurance plan design.
In the case of insulins, patients with Medicare Part D and commercial insurance are saving an average of about
$18and $13per prescription, respectively, when using a biosimilar insulin.
Patients who are typically responsible for 20% of Medicare Part B costs are benefiting from the lower Average Sales Price of
$500-$1,900for a standard course of treatment for the three most recently launched biosimilars.
- In the case of insulins, patients with Medicare Part D and commercial insurance are saving an average of about
- Large pharmaceutical companies, often with existing innovative biologic portfolios, lead the marketing of biosimilars, while the smaller companies that are developing biosimilars are likely to license products to the larger company for marketing.
The full version of the report, including a detailed description of the methodology, is available at www.IQVIAInstitute.org. The study was produced independently as a public service, without industry or government funding.
Fulfilling an essential need within healthcare, the Institute delivers objective, relevant insights and research that accelerate understanding and innovation critical to sound decision making and improved human outcomes. With access to IQVIA’s institutional knowledge, advanced analytics, technology and unparalleled data, the Institute works in tandem with a broad set of healthcare stakeholders to drive a research agenda focused on Human Data Science, including government agencies, academic institutions, the life sciences industry and payers. More information about the
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