Study: Sales Price of Originator Declines After Introduction of Biosimilars

The average sales price of both originators and biosimilars declined significantly after the introduction of biosimilars, according to a study published in Health Affairs Scholar. Investigators found that this could suggest the biosimilar uptake alone may not be a complete measure of the market competition and lowering prices.¹

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The global biosimilar market is projected to reach approximately $92 billion by 2031, after generating $27.3 billion in 2023. The fields projected to see the greatest growth are oncology biosimilars and diabetic insulin biosimilars. The increase in diagnoses in oncology has led to more investments into cancer research and treatment, and biosimilar usage is expected to grow for these indications. For diabetes, biosimilars are expected to increase access for patients who need insulin.²

The investigators of the study used 4 originator family case studies that compared sole-preferred coverage where the originator product was preferred (infliximab and pegfilgrastim) and non-sole preferred coverage where both the originator and biosimilars were offered (trastuzumab and filgrastim).¹ They performed 3 analyses, including payer preferences for each originator and the appropriate biosimilar (from 2017 to 2022), changes in originator product market share in each quarter after biosimilar introduction, and changes in market share-weighted average sales price and drug family pricing trends.¹

The study authors explain that the proportion of payers that assigned the reference products for infliximab and pegfilgrastim declined over time; however, the biosimilar for infliximab remained the preferred drug more often than 2 of the 3 biosimilars, and pegfilgrastim tied as preferred compared to its biosimilars. However, for non-sole preferred coverage, the trastuzumab and filgrastim reference products declined more after the introduction of their biosimilars, with both being less often preferred by 2022.¹

For market shares, the sole-preferred coverage medications, infliximab and pegfilgrastim, declined by 45% by the sixth year since first biosimilar launch and 40% by fifth year since first biosimilar launch, respectively. For trastuzumab and filgrastim, they declined 22% by the fourth year and 13% by the eighth year, respectively.¹

The market share-weighted average sale price declined significantly for the sole preferred coverage drugs compared with the non-sole preferred coverage drugs, which maintained higher market share-weighted average sales price. The study authors stated that regardless of coverage strategy, the overall average sales price for all 4 drugs significantly decreased in the years following the launch of the first biosimilar.¹

The authors stated that biosimilar availability has shown cost savings, despite the present adoption strategies. Further, they note that biosimilar uptake alone may not be a complete measure of whether the biosimilar market is working as intended, as the findings demonstrate that the biologic market is competitive and supports cost savings. However, they note further research should be used to determine the impact of originator price reduction and impact on the investment into newer biosimilar development.¹

REFERENCES

1. LaMountain F, Beinfeld MT, Wong W, Kim E, Chambers JD. Biosimilar underutilization alone does not foretell a broken biologics market. Health Aff Sch. 2024;2(7):qxae090. Published 2024 Jul 17. doi:10.1093/haschl/qxae090

2. Gallagher A. Biosimilar Market Expected to Grow to $92 Billion by 2031, Data Show. Pharmacy Times. August 6, 2024. Accessed August 7, 2024. https://www.pharmacytimes.com/view/biosimilar-market-expected-to-grow-to-92-billion-by-2031-data-show