Tuesday, May 17, 2022
HomeImpact of biosimilar infiltration on drug prices - Healthcare Economist

Impact of biosimilar infiltration on drug prices – Healthcare Economist

Although generic drugs often replace their well-known counterparts after losing their own market, biosimilar drug reactions are often slow. In addition, biosimilars are more expensive than small generic drugs. The key question is how much can payers save by switching to biosimilars after losing isolation.

That is the question the paper Dickson and Kent (2021) wants to answer. The authors review how prices vary on prescription drugs, provided by physicians who had similar or similar doses developed before 2005.

Using this data, authors use a fixed, fixed time line to estimate how price changes after initiating generic / biosimilar competition (i.e., yes / no) and the number of generic / biosimilar participants present in the market. In this way, they get:

After removing the sellers from all the drugs in the study, the presence of 1 generic competitor was combined with 14.9% reduction in value in the combined ASP, two generic competitors combined with 32.7% reduction in value, and 3 generic competitors combined . with a 52.0% reduction in cost. More and more competitors were connected with a discounted price of 68.6%; all reductions were based on the price of brand-name products a quarter before the generic competition and not on the cost of having fewer competitors.

The paper shows that Medicare could have saved more money and made rapid changes to biosimilar items.

During the period 2015 to 2019 and for the years when Medicare spent on environmental and related expenses, Medicare and its beneficiaries spent $ 6.5 billion on 6 lives and their related species: Neupogen (filgrastim), Remicade (infliximab), Neulasta (pegfilgrastim), Avastin (bevacizumab), Herceptin (trastuzumab), and Epogen (epoetin alfa)… We hypothesized that the biosimilar compounding method would be linked to a reduction in the cost of the drug by $ 1.6 billion, or 26.6%

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