Loss of exclusivity and the opportunity for biosimilars
Biosimilars are medicinal products derived from biological sources. They are large, complex molecules such as antibodies. Biosimilars are named as such because they are highly similar, but not identical, to originator biologic products.
The European biologics market has been steadily growing over the past decade, prompted by impressive innovations from originator companies. According to a report published by health information technology company IQVIA, the European biologics market is now valued at €8.4 billion. The biosimilar share of that market has been increasing too, with a 58% increase in biosimilar sales over the last five years. This is because the product patents for many of the first originator biologics developed have expired, enabling rival products to enter the market. More originator biologics are due to come "off-patent” in the years ahead – according to IQVIA, of the €200 billion worth of pharmaceutical products globally which will lose patent protection between 2021 and 2025, 44% is attributable to biologics. Market growth for biosimilars is therefore expected to be substantial.
NHS England plan to exploit this opportunity. It has identified scope for the NHS to save at least between £400 million and £500m a year by 2020/21 “through increased uptake of the best value biologic medicines, including biosimilars”. To do so it has set out the following:
- guidance for patients, prescribers, providers and commissioners that seeks to promote competition in the biologics market, including through ‘switching’ to biosimilars. It cites evidence that the entry of biosimilar medicines into the market has already led to “significant discounts” being offered on the original biological medicine, enabling commissioning bodies to realise savings;
- targets to underpin the savings opportunity. It wants at least 90% of new patients to be prescribed “the best value biological medicine” within three months of a biosimilar medicine being launched in the market, and at least 80% of existing patients within 12 months.
For NHS England, the competition from biosimilars “creates increased access and choice for patients and clinicians, and enhanced value propositions for individual medicines” , adding that it is “important for the NHS to embed the principles of switching to the best value biological medicine into commissioning and clinical practice, if we are to realise the optimal rate and extent of savings associated with these medicines”.
To further support the development of the UK market for biosimilars, the Medicines and Healthcare Regulatory Agency (MHRA) last year consulted on new guidance to help developers of biosimilars “more clearly understand the requirements for biosimilar products in the UK”.
The MHRA’s now finalised guidance paves the way for biosimilar medicines to gain regulatory approval without the need for a “confirmatory efficacy trial” in most cases, where “sound scientific rationale supports this approach”. Instead, the MHRA will rely on comparative physiochemical data, to show a clear link between structural and functional aspects of the biosimilar and the reference product, and pharmacokinetic studies, to demonstrate bioequivalence. This differs from the regulatory bodies in the EU and US, for instance, where an additional step of a confirmatory efficacy trial will still be required. This promises to speed up the time it takes biosimilar manufacturers to gain a marketing authorisation for their products in the UK, and aligns with the UK government’s objective of building on the country’s already attractive environment for growing life sciences businesses post-Brexit.