Forbes October 2, 2023
The Inflation Reduction Act isn’t explicitly focused on curbing market entry impediments, but through actions taken by the Centers for Medicare and Medicaid Services–specifically, its selection of certain biologics for the initial round of price negotiation, such as Enbrel and Stelara–it appears to be indirectly entering the fray.
Biologics account for more than 40% of current prescription drug expenditures, while only representing 2% of all prescriptions. So on a per prescription basis, biosimilars–which have active ingredients similar to those of a previously licensed reference biologic–can yield substantial cost savings.
Manufacturers of the reference or originator biologics often build so-called patent thickets around their products to ward off competition from biosimilars. Due to biologics’ complex structure and manufacturing processes, there are...
Today's Sponsors
Today's Sponsor