{"id":2634,"date":"2023-03-29T12:12:29","date_gmt":"2023-03-29T17:12:29","guid":{"rendered":"https:\/\/www.bbrown.com\/?post_type=insight&p=2634"},"modified":"2023-05-11T15:07:13","modified_gmt":"2023-05-11T20:07:13","slug":"will-biosimilars-help-save-employers-money","status":"publish","type":"insight","link":"https:\/\/www.bbrown.com\/us\/insight\/will-biosimilars-help-save-employers-money\/","title":{"rendered":"Will Biosimilars Help Save Employers Money?"},"content":{"rendered":"

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Employee Benefits<\/p>\n

\n Will Biosimilars Help Save Employers Money?\n <\/h1>\n\t\n <\/div>\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/div>\n\n\t<\/div>\n\n\t\n[\/vc_column][\/vc_row][vc_row][vc_column width=”2\/3″]\n
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\n Will Biosimilars Help Save Employers Money?\n <\/h1>\n\t\n <\/div>[vc_column_text]After many years of maintaining its top-selling status without competition, Humira\u00ae will soon have multiple biosimilar candidates to challenge its biological treatment for inflammatory disease.<\/p>\n

Biosimilars are FDA-approved medical products with almost identical copies of the original patented biological treatments. They are clinically equivalent but are not the same.<\/p>\n

As competition increases from biosimilars, it is worth noting that generic drugs \u2013 chemically equivalent, having the same active ingredients as traditional branded drugs \u2013 have helped save employers millions of dollars. According to the IMS Health Institute, generic drugs saved the U.S. healthcare system $2.2 trillion from 2009 to 2019.1<\/sup> The question is whether biosimilars will result in savings.<\/p>\n

Humira Is the Costliest Drug for Employers, but Will Its Biosimilars Save Employers Money?<\/h3>\n

The short answer is yes, but it may take time and the savings may differ for employers depending on their Pharmacy Benefit Managers (PBMs). There are several reasons why cost savings may not be immediately seen.<\/p>\n

On the one hand, biosimilars present competition; generally, costs decrease as competition increases. However, unlike traditional generic drugs, pharmacists will not be able to make automatic substitutions with biosimilars that do not have an interchangeable designation. Unless the FDA authorizes a biosimilar as \u201cinterchangeable,\u201d patients will be required to obtain a physician\u2019s prescription to change to a biosimilar. It\u2019s unclear whether physicians will prescribe them. A survey of rheumatologists found that only 35% felt comfortable switching a patient doing well on Humira to a biosimilar.2<\/sup><\/p>\n

Also, we do not know how AbbVie will alter its pricing for Humira in response to the competition. PBMs are developing formulary strategies based on the lowest net cost options. Will AbbVie and the manufacturers of biosimilar competitors pay for preferred formulary status with discounts and rebates? The situation will be fluid as new biosimilars are released.<\/p>\n

Another factor in this dynamic environment is the potential impact on specialty manufacturer assistance programs. Due to Humira\u2019s potential market share decline based on the increased competition, the availability of funds may become unpredictable.<\/p>\n

What Should Employers Do Today?<\/h3>\n

Employers should talk with their PBM to understand their Humira biosimilar strategy and how it will impact their plan spend and member experience. Specifically:<\/p>\n