RAND Corp. projects that biosimilar drugs will save $44.2 billion by 2024

NEW YORK — The RAND Corp. projected that the introduction of biosimilar drugs in the United States will reduce direct spending on biologics by $44.2 billion from 2014 to 2024, the firm announced Monday.  

 

"The Cost Savings Potential of Biosimilar Drugs in the United States," published by RAND and sponsored by Sandoz, highlights the promise of biosimilars in the biopharma marketplace.

 

"We predict that biosimilars will lead to a $44.2 billion reduction in direct spending on biologic drugs from 2014 to 2024, or about 4% of total biologic spending over the same period, with a range of $13 billion to $66 billion," RAND noted on its webpage. "While our estimate uses recent data and transparent assumptions, we caution that actual savings will hinge on the specifics of the final FDA regulations and on the level of competition."

 

The introduction of biosimilars is expected to reduce prices, albeit to a lesser degree than small-molecule generics, according to the report.