New ‘Biosimilars’ may help Reduce Medication Costs

January 1, 2024

Author: Melody L. Berg, PharmD, BCPS, MPH/ Medically reviewed by Carmen Pope, BPharm.

Biologic or biosimilar drug, what is the difference?

Much like a generic is similar to the brand-name drug, each biosimilar drug is similar to an already- approved biologic drug. Biologic drugs are developed through a complex process that utilizes sugars, proteins, cells, or tissues from humans, animals, or microorganisms. There are many biologics on the market, and they are used to treat several medical conditions.

Examples of commonly used biologics are adalimumab (Humira®) to treat rheumatoid arthritis and psoriasis, epoetin (Epogen® or Procrit®) to increase red blood cell production in the body, and trastuzumab (Herceptin®) to treat breast cancer. Making medications from living cells is a very complicated process and requires a large investment of time and money. That’s why biologics can be expensive. The average daily cost for a biologic is more expensive vs. a non-biologic medication.

Biosimilar drugs are very similar to, but are not exact copies of, the original biologic drug in the way the product is made. However, biosimilars produce equivalent clinical outcomes to that of the original biologic, and they cost less.

Biosimilars have been compared to generic drugs. However, there are several important differences between these types of medications. Generic medications are exact copies of the original drug product with the exact same active ingredient and name. Biosimilars, on the other hand, work the same way as the original biologic medications but are not exact copies of the original medication.

The FDA requires all biosimilar medications to be approved for safety and effectiveness. Current state laws require biosimilars to be specifically prescribed for you by a doctor or other healthcare prescriber. Someday, pharmacists may be allowed to switch prescriptions from a biologic to a biosimilar if it is cost-effective for the patient.

Although biosimilars are new to the United States, they have been offered to patients in Europe for almost a decade. Biosimilars have the potential to drive down drug costs, saving the healthcare system billions of dollars and providing lower-cost treatment options for patients. Be on the lookout for new biosimilars in the near future.

Learn more about biosimilar medications.

Actual drug patent expiration dates and availability of new medications are subject to change due to patent litigation, settlement agreements, additional patents, exclusivities, and final FDA approval. Distribution and availability of new medications at pharmacies may not occur immediately following FDA approval. Patients are advised to speak with their healthcare professional or pharmacist regarding appropriateness as well as actual availability.

*This is provided for information only. The reference to any medication above does not mean the medication is covered by your plan.

Related News

demo-attachment-261-Group-56
demo-attachment-606-Group-43
demo-attachment-1121-Rectangle-602

Benefit Advisors & Employees - Want to know more?

Members: Please call the number on the back of your ID card or e-mail member.services@benecardpbf.com Clients: Contact your Client Relations Manager
demo-attachment-180-Group-4