The U. S. has lagged behind the rest of the world as far as biosimilars are concerned. Biosimilars have on the market in Europe since 2006 and they are commonly in China, India, and South Korea.
But the FDA approved the first biosimilar, filgrastim-sndz (Zarxio), on March 6, 2015, and now analysts are busy predicting how large the U.S. market will be.
A recent report by Market Search Reports Inc. says the sales revenues in the U.S. for biosimilars will increase from $1.9 billion this year to $11 billion in 2020. According to a press release about the report, largest markets for biologics are Europe, Japan, and the U.S., so they are likely to the largest markets for biosimilars.
The report says biosimilars now account for just 0.5% of the revenues for biologics worldwide. That could grow to 10% but that growth is contingent upon strong market in the U.S., the report says.
MarketandMarkets also came out with a report on biosimilars market recently. As described in a press release, the report puts the current global market at $2.29 billion and estimates the CAGR at 22.1% for the forecast period (not specified in the press release).
Unresolved issues of interchangeability, naming conventions, and indication extrapolation will shape the size of the U.S. market. But the MarketandMarkets report notes that in Europe a major factor has been budgetary pressures to control health care costs.
The same might be true in the U.S.
With Medicaid expansion, ACA subsidies, and the aging of the baby boomers into Medicare, public payers are responsible for an increasing share of the health care dollar. They should have an incentive shop for the best value, which would seem to include biosimilars.