Biosimilars Are Changing the Cost of Cancer Treatment—Here’s How
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Key Facts
- Biosimilars are near-identical versions of biologic cancer drugs, available at lower costs.
- Germany saves hundreds of millions annually from just one biosimilar drug.
- Patient mistrust and policy hurdles can slow biosimilar adoption.
- Insurance coverage is a major driver of biosimilar usage in cancer care.
- Biosimilars help stretch healthcare budgets and expand treatment access.
Cancer treatment has come a long way—advancements in biologic drugs have improved survival rates and quality of life. But there’s a catch: these drugs are notoriously expensive. That’s where biosimilars step in. Designed to be near-identical versions of already-approved biologics, biosimilar products offer the same clinical benefits at significantly lower costs. Think of them as the generic version of biologic drugs—just as safe and effective, but easier on the wallet compared to brand name biologics.
Table of Contents
- Cost-Saving Potential: Why Biosimilar Medicines Matter
- How Much Can Biosimilars Save? A Biosimilar Medicines Savings Report
- What Affects Biosimilar Cost Savings?
- Economic Impact: Who Benefits?
- Challenges and Considerations: Clinically Meaningful Differences
- Closing Thoughts
- References
Cost-Saving Potential: Why Biosimilar Medicines Matter
Biologics are the most expensive therapies in oncology. When biosimilars come in, they break up monopolies, create competition and reduce costs—not just for themselves but for the original biologic they’re copying. The result? A more balanced, less financially draining landscape for cancer care. Plus the list of biosimilars approved by the FDA is growing and that’s driving down costs and increasing access.
The European Union was the first to adopt biosimilars and they’ve already seen big price reductions. The UK and Germany are saving millions and other healthcare systems are starting to follow. Interchangeable biosimilars can be substituted for original biologics by pharmacists without a prescriber’s intervention, making them more accessible and affordable for patients. These biosimilars are designed to have no clinically meaningful differences in safety and efficacy compared to their reference biologics so patients get the same quality of treatment. [1]
Want to see how biosimilars are making headlines? Read how biosimilars are disrupting cancer care costs in Europe.
How Much Can Biosimilars Save? A Biosimilar Medicines Savings Report
The numbers are impressive. Germany alone has reported annual savings from switching to biosimilars:
- Trastuzumab biosimilars (used for breast and gastric cancers) save between €95.9 million and €120.5 million.
- Rituximab biosimilars, used for blood cancers like lymphoma and leukemia, save around €4.9 million for follicular lymphoma alone.
- Filgrastim biosimilars, which support white blood cell production during chemo, save up to €40.5 million.
Biosimilar versions of biologic medicines used in cancer treatment are coming, with more options for patients and healthcare providers. [2]
These are just snapshots. Biologics are also used for autoimmune diseases like rheumatoid arthritis. Widespread adoption of biosimilar drugs could multiply these savings across global healthcare systems, huge cost savings.
What Affects Biosimilar Cost Savings?
While the savings are clear, a few things need to line up for biosimilars to deliver. Minor differences between biosimilars and original biologics are expected due to the complexity of biologics being derived from living sources.
Biosimilars don’t need to copy active ingredients exactly like generics do, but they still aim to mimic the same functional characteristics and benefits. [3]
Regulatory Policies
- Getting biosimilars to patients quickly depends on smart regulatory systems.
- Countries with streamlined approval processes see faster uptake and bigger savings.
- Excessive red tape delays access and reduces economic impact.
Provider and Patient Perception
- One of the biggest hurdles? Misinformation.
- Many patients (and some doctors) still think biosimilars aren’t as safe or effective as the branded version.
- Biosimilars go through clinical testing to prove they match the original biologic in every way.
- Pharmacists and oncologists can help clear up these doubts.
Pricing Strategies
- The bigger the price gap between the biosimilar and the original drug, the more everyone saves.
- Competitive pricing is a big incentive for adoption.
Insurance and Payer Policies
- Even the best biosimilar won’t work if it’s not covered.
- When an insurance company puts biosimilars on their formulary and promotes providers to use them, adoption goes up—and so do savings. [4]
Economic Impact: Who Benefits?
Healthcare Systems
The biosimilar effect can’t be overstated. The Biologics Price Competition and Innovation Act was passed to encourage the production of biosimilars as lower-cost alternatives to brand-name biologics, to increase competition, create more treatment options and reduce healthcare costs.
By taking pressure off the budget, they give healthcare systems room to invest in newer, potentially more groundbreaking treatments. Biosimilars also could rebalance spending through price competition and innovation.
Patients
For patients, the benefits are personal and huge. Biosimilars offer cost-effective alternatives and more treatment options, making them a key consideration in patient decision-making. Lower drug prices mean lower out-of-pocket expenses, fewer treatment delays and fewer financial trade-offs between health and household needs.
For someone with cancer, that can be life-changing. Biosimilar medications can make a big difference in reducing out-of-pocket expenses for patients, making treatments more accessible and affordable. [5]
Challenges and Considerations: Clinically Meaningful Differences
While biosimilars have a lot going for them, there are a few bumps in the road.
- Uptake: Not all hospitals or clinics are quick to switch. Lack of awareness or institutional inertia can slow adoption.
- Legal and Safety Concerns: Patent disputes and lingering questions about long-term safety can raise doubts, even when the science is solid. Regulatory pathways for biosimilars are designed to reduce unnecessary animal testing by relying on existing drug science.
- Intended Copies vs. True Biosimilars: Some drugs marketed as “biosimilar-like” don’t meet rigorous regulatory standards. It’s important to distinguish between these copycats and fully approved biosimilars that are highly similar to reference biologics, with no clinically meaningful differences in safety and efficacy.
- Biological products, due to their complexity and the strict regulatory standards they must meet, are big and expensive in the healthcare system. [6]
Closing Thoughts
Biosimilars are not just a budget solution—they’re a long-term path to more access, better outcomes and a more just healthcare system. But it will take all of us: education, smart policy and providers and payers willing to change.
If the trend continues, biosimilar medicine may be one of the biggest cost-containment tools in oncology. And most importantly, they can make financial hardship never stand between a patient and the treatment they need.
Understanding interchangeability and regulatory approval of biologics and biosimilars is key, as not all biosimilars are interchangeable without further testing by the FDA. This is important for patient safety and treatment options.
References
[1] Hübel, K., Kron, F., & Lux, M. P. (2020). Biosimilars in oncology: Effects on economy and therapeutic innovations. European journal of cancer (Oxford, England : 1990), 139, 10–19. https://doi.org/10.1016/j.ejca.2020.07.037
[2] Cornes P. (2012). The economic pressures for biosimilar drug use in cancer medicine. Targeted oncology, 7 Suppl 1(Suppl 1), S57–S67. https://doi.org/10.1007/s11523-011-0196-3
[3] Grewal, S., Ramsey, S., Balu, S., & Carlson, J. J. (2018). Cost-savings for biosimilars in the United States: a theoretical framework and budget impact case study application using filgrastim. Expert review of pharmacoeconomics & outcomes research, 18(4), 447–454. https://doi.org/10.1080/14737167.2018.1476142
[4] Liu Y. (2021). Utilizing oncology biosimilars to minimize the economic burden associated with cancer treatment: managed care considerations. The American journal of managed care, 27(14 Suppl), 10.37765/ajmc.2021.88734. https://doi.org/10.37765/ajmc.2021.88734
[5] Huang, H. Y., Liu, C. C., Yu, Y., Wang, L., Wu, D. W., Guo, L. W., Wang, S. H., Fang, H., Bai, Y., Fang, Y., Fan, Q., Sun, C., Wu, Y., Shi, J. F., Ma, F., Tang, Y., Dai, M., & Li, N. (2020). Pharmacoeconomic Evaluation of Cancer Biosimilars Worldwide: A Systematic Review. Frontiers in pharmacology, 11, 572569. https://doi.org/10.3389/fphar.2020.572569
[6] Jacobs, I., Ewesuedo, R., Lula, S., & Zacharchuk, C. (2017). Biosimilars for the Treatment of Cancer: A Systematic Review of Published Evidence. BioDrugs : clinical immunotherapeutics, biopharmaceuticals and gene therapy, 31(1), 1–36. https://doi.org/10.1007/s40259-016-0207-0
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