Biosimilar Medicines Produce Billions In Savings In U.S., Dramatically Reduce Oncology Spending Growth: Report

The Biosimilars Council, a division of the Association for Accessible Medicines (AAM), today announced key findings from the forthcoming 2021 Generic Drug and Biosimilars Savings in the U.S. report, which highlights how greater biosimilar uptake has dramatically reduced oncology spending and generated billions in overall savings.

According to the report, the introduction of oncology biosimilar medicines has cut the growth rate of oncology spending roughly in half since 2019. This reduction in growth, along with continued use of generic cancer medicines, contributed to a total of $18B saved on oncology medicines in 2020.

The biosimilar drug market continued to grow in 2020, with three new FDA approvals and six new products launched. Overall, the use of biosimilars generated a total of $7.9B in savings for America’s patients last year, bringing the 10-year total savings from biosimilars up to $12.6B. Additionally, biosimilars are projected to generate more than $133B in savings by 2025.

“America’s patients deserve access to lifesaving medicines at more affordable prices, and biosimilars are making new access to care available for patients,” said Christine Simmon, Executive Director of the Biosimilars Council and Senior Vice President at AAM. “Yet biosimilars were still less than 30% volume share in markets where they competed. As more biosimilars are approved and brought to market, patients and taxpayers will save billions while treating serious illnesses like cancer and Crohn’s disease. The full promise of savings through biosimilar competition will only be realized if policymakers take steps to foster greater biosimilar adoption.”

As in the past, this year’s report was developed by analyzing independent research from IQVIA to quantify how much money American patients and the U.S. health care system are saving because of generic and biosimilar alternatives to brand-name prescription and biologic medications.

About AAM
AAM is driven by the belief that access to safe, quality, effective medicine has a tremendous impact on a person’s life and the world around them. Generic and biosimilar medicines improve people’s lives, improving society and the economy in turn. AAM represents the manufacturers and distributors of finished generic pharmaceuticals and biosimilars, manufacturers and distributors of bulk pharmaceutical chemicals, and suppliers of other goods and services to the generic industry. Generic pharmaceuticals are 90 percent of prescriptions dispensed in the U.S. but only 18 percent of total drug spending.

About The Biosimilars Council
The Biosimilars Council, a division of the Association for Accessible Medicines (AAM), works to ensure a positive environment for patient access to biosimilar medicines. The Biosimilars Council is a leading source for information about the safety and efficacy of more affordable alternatives to costly brand biologic medicines. Areas of focus include public and health expert education, strategic partnerships, government affairs, legal affairs and regulatory policy. For more information, visit www.biosimilarscouncil.org.