New White Paper Finds Biosimilars Could Drive Greater Value Beyond Price for Healthcare System
Biosimilars Forum Releases New Analysis Presenting More Comprehensive Value Assessment Framework for Biosimilar Treatments
WASHINGTON, D.C. (October 10, 2018) — A new value assessment framework (VAF) can help patients, providers and payers understand how biosimilar treatments should be evaluated fully against their reference products, according to a white paper released today by the Biosimilars Forum.
VAFs have become a preferred approach among many stakeholders for examining rising healthcare costs in the United States. However, existing frameworks for assessing the value of biosimilars in the US only considered benefits specific to certain stakeholders, such as insurers or providers, leaving significant omissions and understating the value biosimilars can provide.
The paper, Quantifying the Value of Biosimilars, demonstrates ways in which the true value of biosimilars has previously been understated by omitting several aspects of the patient experience. These treatments can help overcome traditional barriers to care — such as certain treatments being available only to patients with the most severe conditions — thereby providing greater patient access to medicine and passing on savings across the healthcare system.
“Biosimilars hold great promise to help control rising healthcare costs in the United States, but we need to fully recognize their value in order realize these benefits,” said Juliana M. Reed, President of the Biosimilars Forum. “A more comprehensive value assessment framework can provide a much-needed lens to help stakeholders across the medical community better understand the dynamic nature of the biosimilars market.”
“Value assessment frameworks are playing a growing role in developing a more robust understanding of the complexities of our healthcare system and informing regulatory decisions,” said Kristen Migliaccio-Walle of Xcenda, which authored the study on behalf of the Forum. “By capturing missing elements from existing frameworks, such as improving access to treatments and facilitating adherence, we can increase awareness of the true value of biosimilars and improve overall patient health.”
The Forum identified the following key elements that should be included when assessing value of biosimilars:
Lower drug acquisition costs
Biosimilars are priced lower than reference products, which could also affect pricing for the reference product. Lower prices should improve patient access to therapies.
Potential cost offsets associated with better adherence
Poor adherence results in patients attaining suboptimal treatment benefits. Improving adherence may lead to better health outcomes and cost offsets.
Earlier treatment initiation for serious, often chronic conditions
Patients who have timely access to effective therapy may avoid disease complications or morbidity. The result may be decreased resource utilization and improved health outcomes.
Enhanced patient experience
Improving patient access to care and decreasing the burden associated with financial concerns may have a positive impact on patient outcomes overall.
Improved development and innovation
Increased use of biosimilars may lead to greater opportunity to increase access to other innovative therapies and/or leave more budget for innovative therapies. Increased competition among biosimilar products may lead to power prices for the originator(s).
In designing the scope for this report, the Forum examined the existing framework across a number of stakeholders throughout the medical community. The five frameworks compared for this analysis included economic impact analyses from the Institute for Clinical and Economic Review (ICER) Reports and Avalere/Faster Cures Patient-Perspective Value Framework (PPVF), as well such from the provider perspective such as Memorial Sloan Kettering Cancer Center (MSKCC) DrugAbacus, American Society of Clinical Oncology (ASCO) Value Framework and National Comprehensive Care Network (NCCN) Evidence Blocks.
As concerns about rising health costs continue to grow, biosimilars can provide an affordable treatment option for patients treating cancer, rheumatoid arthritis, psoriasis and a number of chronic conditions that are as safe and effective as their original reference product. Biosimilars are expected to save the healthcare system as much as dollars over the next decade due to their lower development costs.
About the Biosimilars Forum
The Biosimilars Forum is a nonprofit organization whose mission is to advance biosimilars in the United States with the intent of expanding access and availability of biological medicines, and improving health care. The founding members of the Biosimilars Forum represent the majority of companies with the most significant U.S. biosimilars development portfolios.
Anthony Hogrebe, Marathon Strategies