The Biosimilars Forum Commends Governor Spanberger For Supporting Lower-Cost Medicines In Virginia

Governor Spanberger Prioritizes More Affordable Prescription Drugs for Virginians

Juliana M. Reed, executive director of the Biosimilars Forum, released the following statement in response to Governor Spanberger’s rejection of the Virginia legislature’s Maximum Fair Price (MFP) proposal. Spanberger returned the bill to the legislature with proposed changes to establish an All-Payer Claims Database and a non-binding Prescription Drug Affordability Board (PDAB). The PDAB would study how an MFP could impact drug prices and access in Virginia, with a report due December 31.

“The Biosimilars Forum commends Governor Spanberger for prioritizing Virginians’ access to lower-cost medicines like biosimilars. By rejecting the Maximum Fair Price (MFP) proposal, Spanberger reaffirmed the importance of free market competition in helping reduce prescription drug prices for patients. MFP limits could also cause supply chain bottlenecks and deter manufacturers from developing lower-cost biosimilars. On average, biosimilars cost more than 50% less than brand-name biologics.

“The Forum and its members take immense pride in developing and manufacturing lower-cost biosimilars, and supportive policies are essential to ensure these medicines can reach the patients who need them. Safe, effective, and lower-cost biosimilars are a critical part of the solution to skyrocketing prescription drug costs.

“Imposing MFP limits across all state commercial and Medicaid markets would not lower prescription drug costs for patients. Artificial price caps can undermine the economic incentive for U.S. companies to develop and launch lower-cost medicines, including biosimilars.

“Today, more than 90 biosimilars have been approved by the FDA in the United States across dozens of disease states. The potential of biosimilars is enormous. To date, biosimilars have been associated with savings of $56B, but with support from the Administration and Congress, this number can be much higher. In fact. the next five years could see an increase in savings up to $181B for Americans and the healthcare system.

“Ensuring biosimilars reach the patients is especially important considering the ‘biosimilar void.’ Of the 118 biologics expected to lose patent protection over the next decade, only 10 percent currently have biosimilars in development. This void in the biosimilar market significantly limits potential savings to the healthcare system, and steps to streamline development can help mitigate its detrimental impact on the industry.

“A typical biosimilar costs $100M to $300M to develop and takes six to nine years to go from the initial stages of development to FDA approval, requiring a major investment from U.S. companies. Our members take immense pride in this investment, and they appreciate the FDA taking steps to ensure their products are approved with efficiency to reach Americans that need them.

“Prices continue to rise for reference biologic drugs, which were 51% of U.S. prescription drug spending in 2024, despite only making up 5% of prescriptions. Patient and taxpayer spending on biologics increased from $100B to $260B (adjusted for inflation) over the last decade. These risings costs hit American seniors, small businesses, and middle-class families the hardest, and biosimilars can provide critical relief for communities across the nation.”

For more information on the Biosimilars Forum’s work to increase access to lower-cost biosimilars, visit biosimilarsforum.org.