Biosimilars and their influence on the pharmaceutical industry can be observed from many different angles
With the rise of technology over the decades, we have witnessed a steady growth in many different scientific fields. Healthcare has significantly improved, giving us new and improved ways of curing diseases. Pharmaceutical companies are at the top of the healthcare business. However, many things are yet to be discovered, and we can only expect medicine to reach higher peaks every year. An emerging area in the pharmaceutical industry is biosimilars development. Biosimilars and their influence on the pharmaceutical industry are leaving a profound mark on today's medicine.
Before we can discuss the effect of biosimilars on life as we know it, let's take a look at the definition.
The definition of biosimilars
Biosimilars, also known as biogenerics, are highly identical versions of biologics - medicines made from living microorganisms found in plant or animal cells. They are manufactured by other companies, approved copies of originals.
Biosimilars are approved copies of original products, equally safe and efficient, but with a lower cost
They exhibit high molecular complexity and are sensitive to changes in manufacturing. Biosimilars and their influence on the pharmaceutical industry can be observed from many different angles:
- benefits of biosimilars
- market development
- competition and prices
- pricing compared to the value
Let's dive deeper into this subject and find out what the benefits of biosimilars are.
Benefits of biosimilars
Here is where we can really see the benefits of biosimilars and their influence on the pharmaceutical industry. For starters, they can be used after the patent for the original medicine expires. Furthermore, the price of biosimilars is lower in comparison to the original product.
Market development - Europe vs. US
There is significant growth in biosimilar sales in Europe. For example, over the past three years, the market value has jumped from $2.5 billion to over $4 billion. The leading countries are the UK and Nordics, with France tightly behind. If we take into consideration that biosimilars are equally safe and efficient as the originals, it becomes clear why the demand is so high.
However, progress across the regions is uneven. If we compare the demand for retail products and self-injectable biologics with hospital-administered products, we can see the difference in sales.
On the other hand, the US market remains flat. For example, while eleven biosimilars have FDA approval, only three are active on the market. There are many disputes over patents, or they just wait for patent expiry.
After they are FDA approved, and the patent for the original medicine expires, biosimilars are going to conquer the market
Competition and prices
The biosimilar market is under a tremendous amount of pressure. All that because of price discounting and competition, especially in Europe. As I already mentioned, this trend started in Nordic countries, the UK and France, but it quickly spread over Germany, Italy, and Spain.
Competitor companies are offering over 70% discount for biosimilar drugs. Buyers are coordinating tenders to boost competition between suppliers. Also, new participants are entering the scene every day, competing to capture the market. As far as we can tell, the prices will only go down. The popularity and usability of biosimilars are rapidly increasing, and affordable prices are expected. Companies use international transport organizations to distribute medicines in all directions, securing their place on the market.
