Last Updated : September 26, 2019
Biologics are large, complex drug molecules that come from the metabolism of living organisms or their cells. Biosimilars are based on a reference biologic and are highly similar but not exact copies. Biosimilars enter the market once the pre-existing biologic’s patent has expired. They are considered cost-saving alternatives to highcost biologics for the treatment of various medical conditions. For a health care system to have successful uptake of biosimilars, many factors need to be considered, such as the number and timing of entrants into the market, patient and health care providers’ understanding and acceptance of biosimilars versus biologics, the cost of biosimilars, pricing policies, payer coverage and utilization policies, and policies regarding interchangeability and substitution. To help inform Canadian policy development, Canada's Drug Agency explored existing international post-market policies pertaining to these factors in the Environmental Scan International Policies on the Appropriate Use of Biosimilar Drugs.
Table 1: Policies Related to Interchangeability, Switching, and Substitution
Established Interchangeability, Switching, and Substitution Policies | Country That Established the Policy or Initiative |
---|---|
Automatic substitution (replacing one drug with another at the pharmacy level without consulting the prescribers) allowed for biosimilars Note: Some conditions may apply (e.g., automatic substitution may be prohibited by the physician) | Australia (“a-flag” designated biosimilars only),a France (treatmentnaive patients only), Germany(“bioidentical” biosimilars only),b andUS (“interchangeable” designated biosimilars only)c |
Authorities recommend prescribing biosimilars for treatment-naive patients | Australia, France, Germany, the Netherlands, and Norway |
(Physician-led) switching is encouraged for patients already treated with a reference biologic | Australia, Finland, France, Germany, and Norway |
a “A-flag” biosimilars are interchangeable with the reference biologic. Biosimilars for etanercept (Brenzys), infliximab (Inflectra), and adalimumab (Amgevita and Bioepis)have received “a-flag” designation, and can be automatically substituted.
b Germany publishes a list of biosimilars known as “bioidenticals” that can be substituted at the pharmacy. “Bioidenticals” refer to only those biosimilars to a reference biologic that are manufactured by the same manufacturer, under the same manufacturing process, but sold under different trade names.
c As of September 2018, no biosimilars have been approved by the FDA as interchangeable.
Table 2: Summary of Supply-Side Policies (Policies Implemented by Payers, and Policies Related to Pricing and Procurement)
Type of Policy | Established Supply-Side Policy | Country That Established the Policy or Initiative |
---|---|---|
Pricing policy | Manufacturers are free to set the price | UK (subject to rules)a and US |
Price of the biosimilar cannot be more than the reference drug | Germany and Norway | |
Direct price controls (e.g., mandatory discounts) | Australia, Finland, France, and Norway (stepped price discount over time and increase in number of competitors) | |
Procurement policy | Tendering at hospital, regional, and national levels | France, Germany, the Netherlands, Norway, and the UK |
Prohibit or limit discounts offered to individual retail pharmacies | Prohibit or limit discounts offered to individual pharmacies | France (restriction on level of discount offered), Germany, and Norway |
Price markup adjustments | The Netherlands and the UK | |
Clawback arrangements (take a portion of profits from the pharmacy) | Germany, the Netherlands, and the UK | |
Pharmacy policies | Regressive markup (offer larger percentage markups on cheaper drugs) to encourage dispensing of lower-cost drugs | France and Norway |
a Pharmaceutical Price Regulation Scheme rules set price ceilings based on negotiations and manufacturer profit levels.
Table 3: Summary of Prescribing Incentives
Established Prescribing Incentives | Country That Established the Policy or Initiative |
---|---|
Monetary incentive for prescribing “best value” medicine | UK and US |
Gain-sharing (splitting the cost savings from prescribing lower-cost drugs between the payer and prescriber) agreement and pharmaceutical budget limit for clinics | Germany (penalties if budget limit exceeded) and the UK |
Prescribing quotas | France and Germany |
Mandatory prescribing of tender-winning drugs or cheaper options | Finland and Norway |
Table 4: Summary of Education Initiatives
Established Education Initiatives | Country That Established the Policy or Initiative |
---|---|
Initiatives established to promote the use of biosimilars and improve the understanding of biosimilars by patients and health care providers | Australia, pan-Europe,a France, Germany, the Netherlands, Norway, the UK, and the US |
a European Medicines Agency