Samsung Bioepis' report pins biosimilars to reduce medical costs by $181 billion by 2028

Samsung Bioepis released the first edition of its U.S. biosimilar market report on Tuesday, predicting that the use of biosimilars would save $181 billion in medical costs in the U.S. over the next five years.

The report said biosimilars have reduced medical expenditures by $56 billion in the U.S. since 2013.

According to the report, the FDA has approved 40 biosimilars in the U.S. with 28 launched in the market, as of April 2023.

“The first edition of this report reveals that market competition stimulated by the introduction of biosimilars in the U.S. has contributed to significant price reductions in the biologics market,” said Thomas Newcomer, Vice President and Head of Market Access at Samsung Bioepis U.S.

However, he maintained that the level of biosimilar usage varies by molecule, with some still occupying less than 50 percent of the market share.

“This indicates that there is still room for greater cost savings in therapeutic areas such as supportive care, immunology, and ophthalmology,” Newcomer pointed out.

The report revealed that increased biosimilar usage was linked to lower cost, with oncology biosimilars such as trastuzumab, bevacizumab, and rituximab, being more price sensitive than supportive care biosimilars including filgrastim, pegfilgrastim, and epoetin alfa or immunology biosimilars like infliximab.

It also noted that on average, biosimilars gained 53 percent market share three years after their initial launch with a particularly faster acceptance rate of 75 percent for oncology and pegfilgrastim biosimilars compared to other therapeutic areas.

Additionally, biosimilar launches have led to significant price decreases over time with average sale prices (ASPs) declining by approximately 41 percent three years after the first biosimilar launch. 

In particular, ASPs for oncology biosimilars experienced the steepest decline, with each dropping over 50 percent in the first three years after biosimilar launch.

Furthermore, the report analyzed the national average drug acquisition costs (NADAC) for products under the pharmacy benefit, whose findings indicate the potential for deep discounts and savings in insulin and adalimumab categories.

The report also briefly introduced the biosimilar interchangeability concept which allows a reference product to be switched with another biosimilar without the intervention of the prescribing physician at pharmacies.

“Biosimilars continue to play a crucial role in driving down healthcare costs in the U.S. and we hope this report provides an insightful context into the forefront of the US biosimilar market landscape,” said Newcomer.

Samsung Bioepis stated that future Biosimilar Market Reports will be published on a quarterly basis after the Center for Medicare and Medicaid Services (CMS) updates ASP values for each product.