Payers use biosimilars to pressure originators to lower prices.
By Astrid Kurniawan, Analyst
1 July 2016
I am an analyst for the market access and strategy team at Datamonitor Healthcare, where my aim is to provide an analysi...
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The entry of biosimilars provide payers with the leverage to pressure branded biologics manufacturers to offer discounts. Payers have a lot to gain from savings resulting from biosimilars use, but if the price of branded compounds is matched to the biosimilars, there is little incentive to promote biosimilar uptake. This is especially the case as implementing programs to drive use of biosimilars in new or existing patients would require investment and potentially disruption to patients’ therapies. Datamonitor Healthcare expects that manufacturers who are willing to offer competitive pricing on par with biosimilars will be able to decrease the biosimilars erosion rate.
“I know that for us [biosimilar infliximab’s reimbursement] it was no problem because we had a discount agreement with the original manufacturer so regarding the costs it was irrelevant for us whether the original or the biosimilar was prescribed. So for us as a health insurer it didn’t matter at all. The health insurers definitely use this to put pressure on the manufacturers and they have discount agreements with almost all of them now. Often, the health insurers even negotiate a discount agreement one month before the biosimilar launches because they use that to exert pressure on the biosimilar manufacturer as well to find another discount agreement so they have low prices for both products. The health insurers really play everybody against everybody else.”
– German regional payer
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