Generic Biologics

injection.jpgI mentioned this yesterday in a blog entry about The Right Prescription.  But I found a few things in an AHIP article today:

  •  Biologics are expensive, cutting-edge medical treatments made from living cells
  • $52.7B industry today; projected to grow to $90B by 2009

“We must focus our efforts on properly managing the costs of biotech drugs to ensure the pharmacy benefit is protected and preserved for the future.”  (Steve Miller, MD, Chief Medical Officer at Express Scripts)

  •  The  say that the top two anemia drugs accounted for 17% of all Medicare Part B carrier spending in 2005.  Two other biologics for cancer and rheumatoid arthritis made up another 3% of Medicare spending.
  • There is lots of discussion going on here at the legislative level to create a pathway for generic biologics to come to market.
  • PCMA estimated $14B in savings over the next 10 years if a pathway is created and Express Scripts estimated $71B in savings.

One Response to “Generic Biologics”

  1. Its not so much the cost of the biologics (especially EPO), but the value being derived from them. Managing crit levels in non-symptomatic patients happens a lot, and is likely units of low value creation, regardless of the price spent.

    Lets get those out of the system, (and if patients were paying the bill, they certainly would) in addition to trying to get the cost down. We’d find the value would go way up, and the volume would go way down (until price declined till it approximated value).

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