Once again, AAM reports the data from the IQVIA 2023 U.S. Generic and Biosimilar Medicines Savings Report (here) which demonstrates the savings power from generic drugs and biosimilars. The Report indicates that, in 2022, the savings realized from the use of generic and biosimilars hit a record $408 billion, of which $9.4 billion was from biosimilars. This is up from the 2021 savings of $373 billion, demonstrating the “continued savings for the U.S. health care system, including patients, employers, and taxpayers.”
Key highlights of the report include:
- 90% of prescriptions filled are for generic and biosimilars, yet that only represents only 17.5% of the country’s spending on prescription drugs.
- In 2022, there were $130 billion in Medicare and $194 billion in commercial health plan savings from the use of generic and biosimilars.
- The average generic copay is $6.16, brands cost patients almost 9X more at $56.12.
- In 2022, there were $9.4 billion in savings from biosimilars and $23.6 billion since the first biosimilar entry in 2015.
Every year since the passage of Hatch-Waxman and the introduction of the first biosimilar in 2015, savings from the availability of generic and biosimilars has been increasing. Will this trend continue? Certainly, but with certain legislation being tossed regarding biosimilars and FDA’s recently revised guidance on the labeling for biosimilars (here), and if the stars align, the savings may skyrocket!