Pharmacy benefit companies are strong proponents of a highly functioning biosimilar market. Bringing more biosimilars to market, over time, will allow PBMs to more effectively leverage competition to reduce drug costs for health plan sponsors and patients.

As biosimilar competition increases for prominent biological drugs, some pharmacy benefit companies are preferring both the brand and biosimilars. The market will continue to develop as more competitors enter, and as we have seen with other biosimilars, coverage will increase as prices decline.

So it’s extremely encouraging to see that Senators Mike Lee (R-UT), Ben Ray Luján (D-NM), Mike Braun (R-IN), and J.D. Vance (R-OH) introduced the Biosimilar Red Tape Elimination Act to increase competition within the U.S. biosimilar market and improve access to more affordable alternatives to brand name prescription drugs.

The bill “would deem biosimilars as interchangeable with their branded equivalent upon their approval by the FDA. It also allows for use of switching studies in special circumstances.”

The Pharmaceutical Care Management Association (PCMA) supports the bill, saying:

“Pharmacy benefit companies strongly support the removal of barriers that for too long have suppressed the biosimilars market. This measure will increase competition for biologic drugs, providing added choice and flexibility for health plan sponsors and employers and allow pharmacy benefit companies to leverage this enhanced competition to further reduce drug costs.”

The bill comes on the heels of a recent STAT News event, “The State of Biosimilars: What to Watch,” where a panel of experts discussed the state of the U.S. biosimilar market. During the event, the moderator highlighted recent reports showing the savings secured from biosimilars:

“There was a recent study in Health Affairs that looked at Herceptin, the biosimilar version of Herceptin, the cancer treatment… researchers for that study found that in just three years prices [for] some versions declined by more than half, [prices for] some biosimilars versions declined by more than half and the originator, the brand name medication lost half of the market. The suggestion is that biosimilars made a difference.”

Health policy researcher and CEO, Matrix Global Advisors, Alex Brill, explained how biosimilars have resulted in significant savings and more patient choices. He said:

“There’s more room to grow in this market, but in the last short period of time, I think we have seen a lot of rapid development, and in any individual markets where there is competition, I think we’re seeing that competition be fairly robust and the evidence being the degree to which prices are declining in those markets, and therefore net spend in those markets have declined significantly for those products for which there are biosimilar competitors.”

In addition, former Food and Drug Administration Commissioner Scott Gottlieb, M.D., explained during PCMA’s recent Policy Forum how biosimilars are helping to secure savings as more of these alternatives to high-priced biologic products enter the market. He said:

“…I think what you’ve seen is a robust market taking shape where there’s multiple entrants. There have been biosimilar launches that have failed, but there’s been a lot that have been successful. I think the companies in this space have figured out how to sell a biosimilar. The price savings that you’re seeing are substantial.”

See the press release on the introduction of the Biosimilar Red Tape Elimination Act HERE.

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Read highlights and listen to our most recent episode of “The Pharmacy Benefit” podcast on why we need competition to drive down prescription drug costs HERE.

See PCMA’s recent blog on how a robust U.S. biosimilar market will encourage competition and lower prescription drug costs for patients HERE and a blog highlighting a recent webinar where a robust panel of experts discussed the U.S. biosimilar market HERE.

See PCMA’s guide to understanding the role and value of pharmacy benefit companies HERE.

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PCMA is the national association representing America’s pharmacy benefit companies. Pharmacy benefit companies are working every day to secure savings, enable better health outcomes, and support access to quality prescription drug coverage for more than 275 million patients. Learn more at www.pcmanet.org