Question: What impact will the introduction of biosimilar products have on the cost of health care?
Dr. Kay: It is anticipated that biosimilars will likely be marketed at prices 50% to 70% lower than those of the originator biopharmaceuticals. If most patients who currently are treated with biologic agents are switched to biosimilars, the acquisition cost of biologic agents will be reduced significantly. However, if the availability of biosimilars facilitates treating a larger number of patients with biologic agents, the total acquisition cost of lower-priced biosimilars for an increased number of patients might offset any direct cost savings. Thus, the impact of an expanded market for biologic agents would have to be assessed in terms of the economic effects of a potential increase in workplace productivity and reduction of other health care costs resulting from effective treatment. For example, successful treatment with TNF inhibitors of more patients might reduce the incidence and, therefore, the cost of treating cardiovascular comorbidities in patients with rheumatoid arthritis.
Dr. Kay is the director of clinical research in the division of rheumatology at UMass Memorial Medical Center and a professor of medicine at the University of Massachusetts Medical School, both in Worcester. He disclosed consulting relationships and grant funding from a number of companies that make biologic therapies*
*ADDITION 6/19/2012: Dr. Kay's disclosures have been added to this story.