SPEC analyses find reasons for optimism in the biosimilars market, despite concerns
Two new CEVR analyses leverage the SPEC database to examine how prices and coverage for originator products change following biosimilar introduction. Taken together, these articles demonstrate a competitive market for biosimilars in the US: after biosimilar market entry, insurers changed coverage policies to prefer biosimilars or place them alongside originator products over time, leading to decreases in market share for originator products and substantial overall cost savings to the health care system.
US commercial plans increase choice of biosimilar and originator products; market net prices decrease (Health Affairs)
Molly Beinfeld (CEVR), Fariel LaMountain (CEVR), William Wong (Genentech), Eunice Kim (Genentech), James Chambers (CEVR)
CEVR and Genentech researchers analyzed coverage, market share, and pricing information for seven originator products and 20 biosimilars. They found that from 2017-2022, insurers increasingly provided preferred coverage for biosimilars (i.e., allowing first-line access), either alongside their originator counterpart or in place of them. These shifts led to a decrease in market share for originators and an increase for biosimilars, resulting in a 37% mean drop in average sales price (ASP) for originator drugs four years after a biosimilar’s launch.
Biosimilar underutilization alone does not foretell a broken biologics market (Health Affairs Scholar)
Fariel LaMountain (CEVR), Molly Beinfeld (CEVR), William Wong (Genentech), Eunice Kim (Genentech), James Chambers (CEVR)
In a second analysis, the same research team examined coverage, market share, and pricing changes for four drugs after biosimilar market entry: Remicade (infliximab), Neulasta (pegfilgrastim), Herceptin (trastuzumab), and Neupogen (filgrastim). Manufacturers for infliximab and pegfilgrastim sought exclusive preferred status, while the manufacturers for trastuzumab and filgrastim sought coverage alongside biosimilars. The sole preferred coverage strategy led to substantial drops in ASP and market share for originator products. In contrast, the non-sole preferred coverage strategy led to comparatively smaller decreases in average sales price and larger decreases in market share for originators.
