2023 Report

U.S. Generic and Biosimilar Medicines Savings Report

Generics and biosimilar medicines deliver more savings every year.

 

At a moment when policymakers are contemplating measures to reduce drug prices for American patients, AAM’s 2023 U.S. Generic and Biosimilar Medicines Savings Report, featuring data from IQVIA, breaks the savings down by state, age, payer, common medical conditions and more.

Because tens of millions of Americans entrust their health to generics and biosimilars, they saved $408 billion in 2022, and more than $2.9 trillion in the last decade.

 

U.S. biosimilars savings increased to $9.4 billion in 2022 and nearly $24 billion since first biosimilar entry in 2015.

 

“Amid daily news coverage of prescription drug pricing lies the under-appreciated success story of generic and biosimilar medicines,” said David Gaugh, Interim President and CEO of AAM. “This report provides a comprehensive review of the evidence that patients and the health care system rely on this industry to maintain vitality.”

 

Amid daily news coverage of prescription drug pricing lies the under-appreciated success story of generic and biosimilar medicines, said David Gaugh, Interim President and CEO of AAM. This report provides a comprehensive review of the evidence that patients and the health care system rely on this industry to maintain vitality.

 

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Patients and taxpayers saved $408 billion in 2022

Up from 2021, which found $373 billion in generic and biosimilar savings, this figure indicates continued savings for the U.S. health care system, including patients, employers, and taxpayers. Generics and biosimilars have saved patients and U.S. health care system $2.9 trillion in the past 10 years.

90% of U.S. prescriptions filled, 17.5% of Rx drug spending

Although generic and biosimilar prescriptions account for 90% of prescriptions filled in the U.S., they account for only 17.5% of the country’s spending on prescription drugs. In other words, costly brand-name products account for the bulk of pharmaceutical spending. The generics and biosimilars industry bring costs down.

Less than 2% of total health care spending

Generics represent only 1.5% of all U.S. health care spending.

 

 

$9.4 billion in savings from biosimilars and $23.6 billion since first biosimilar entry in 2015

The market for biosimilar drugs continues to expand. The report finds the average sales price for biosimilars is on average 50% less than the reference brand biologic price was at the time of biosimilar launch. Further, competition from biosimilars has reduced the average sales price of their corresponding brand biologic by an average of 25%.

Biosimilars used in almost 694 million total days of patient therapy

Since 2015, biosimilars have been used in almost 700 million days of patient therapy with no unique clinical challenges. In fact, biosimilar competition has now supported more than 344 million incremental days of therapy — care that patients would not have received otherwise.

AAM publishes these findings annually to ensure policymakers, health-care professionals, advocates and the public know the vital role that safe, effective, FDA-approved generics and biosimilars play in health of our nation.