How Can Biosimilars Capture Market Share From Biologic Drugs?

Unlocking the Potential of Biosimilars in a Complex Market

Despite their promise of cost savings, biosimilars remain underwhelming in their market capture compared to their biologic counterparts. What hurdles do they face, and what strategies could alter their fate?

The Breaking Point

Biosimilars, intended as less costly alternatives to biologic drugs for chronic conditions like cancer, have not achieved swift market success as initially hoped. Unlike generics, which dominate their market within three years, biosimilars have only managed to capture about half during the same period. The challenge lies in their fundamental differences—biosimilars are similar, not identical, to the originals, complicating their automatic substitution by pharmacies.

Beneath the Surface

The creation of biosimilars is a more costly and lengthy process than that of generics, making them tougher to integrate into the prescription landscape. Additional roadblocks include the complex insurance systems and "rebate walls" put up by pharmacy benefit managers (PBMs), which often favor costly biologics due to profitable rebates. Thus, patients have little financial incentive to choose biosimilars.

The Ripple Effect

To navigate these obstacles, biosimilar manufacturers are exploring new paths such as direct contracting with self-insured employers and direct-to-consumer sales, bypassing traditional channels. This model, minimizing intermediary costs, could finally allow the financial attractiveness of biosimilars to realize their full potential, appealing to price-sensitive patients in search of affordable options.