The high cost of biologic drugs in the US has long been a point of contention for lawmakers and patients alike, with President Trump's administration taking steps to address the issue. Biologics are complex medications produced through biological processes, making it difficult for competitors to create alternatives. These medications account for more than half of the total expenditures on medicines in the US, despite making up just 5 percent of prescriptions.
The proposed solutions by the Trump administration aim to increase market competition and incentivize brand name drug manufacturers to lower their prices. This includes streamlining the FDA approval process for biosimilars, which are highly similar versions of biologics. The new proposal would reduce or eliminate some of the tests required as part of the FDA process used to prove a biosimilar drug is as safe and effective as its biologic counterpart.
However, regulatory changes alone may not significantly drive down prices for many Americans. Several non-brand name options need to be available to produce significant price drops. Moreover, biologic manufacturers often offer substantial rebates to pharmacy benefit managers, companies that work with insurers, employers, and others to manage prescription drug plan benefits, which can prevent the sale of cheaper biosimilars.
Another key hurdle remains: Name brand biologic manufacturers often hold many patents and file lawsuits blocking approved biosimilars from being commercially marketed. Despite these challenges, advocates argue that increasing access to biosimilars is crucial for making medications more affordable. The FDA has already approved 76 biosimilars such as insulin, but there are still many more that need to be developed.
To make a standard over-the-counter medication like aspirin, it requires just five ingredients. In contrast, making insulin, a biologic, requires genetic modifications to living organisms, adding complexity and expense to the manufacturing process. These proprietary processes make it difficult for competitors to create alternatives, driving up costs for patients who need them.
While prices may not decrease significantly with the proposed changes, the administration's efforts aim to increase market competition and incentivize price reductions. As one expert noted, "Biologics are like strands of flexible, cooked spaghetti folded in very specific ways, making exact replication nearly impossible." This complexity is a key factor in driving up costs for biologic drugs.
The proposed solutions by the Trump administration aim to increase market competition and incentivize brand name drug manufacturers to lower their prices. This includes streamlining the FDA approval process for biosimilars, which are highly similar versions of biologics. The new proposal would reduce or eliminate some of the tests required as part of the FDA process used to prove a biosimilar drug is as safe and effective as its biologic counterpart.
However, regulatory changes alone may not significantly drive down prices for many Americans. Several non-brand name options need to be available to produce significant price drops. Moreover, biologic manufacturers often offer substantial rebates to pharmacy benefit managers, companies that work with insurers, employers, and others to manage prescription drug plan benefits, which can prevent the sale of cheaper biosimilars.
Another key hurdle remains: Name brand biologic manufacturers often hold many patents and file lawsuits blocking approved biosimilars from being commercially marketed. Despite these challenges, advocates argue that increasing access to biosimilars is crucial for making medications more affordable. The FDA has already approved 76 biosimilars such as insulin, but there are still many more that need to be developed.
To make a standard over-the-counter medication like aspirin, it requires just five ingredients. In contrast, making insulin, a biologic, requires genetic modifications to living organisms, adding complexity and expense to the manufacturing process. These proprietary processes make it difficult for competitors to create alternatives, driving up costs for patients who need them.
While prices may not decrease significantly with the proposed changes, the administration's efforts aim to increase market competition and incentivize price reductions. As one expert noted, "Biologics are like strands of flexible, cooked spaghetti folded in very specific ways, making exact replication nearly impossible." This complexity is a key factor in driving up costs for biologic drugs.