Australia risks missing $1 billion windfall without biosimilar action

The introduction of biosimilar medicines to the Australian market could unlock over $1 billion in savings within the next five years, delivering a significant boost to the one in five Australians living with chronic diseases. However, experts warn that without effective policies to drive uptake, this opportunity could be squandered.

The Generic and Biosimilar Medicines Association (GBMA), the nation’s peak body advocating for affordable medicines, has highlighted the potential financial windfall from a pending wave of biosimilars entering the Pharmaceutical Benefits Scheme (PBS).

Independent Chair of the GBMA, Professor Jane Halton AO PSM, emphasised the economic and health implications of these developments.

“This pending wave of biosimilars will deliver unprecedented levels of new savings that can, and should, be channelled to help ease the health and hip pocket burden on Australia’s most vulnerable patients,” said Professor Halton.

“Further, GBMA continues to advocate for policies, that if adopted, will provide Australians with earlier and more affordable access to the vital therapies and health services they desperately need.”

Australia’s adoption of biosimilars has lagged behind that of other nations, with the initial market uptake proving slow. This slow progress has been attributed to healthcare practitioners’ reluctance to switch patients from originator biologic medicines to biosimilars, as well as patients’ hesitancy to make the switch, often influenced by their doctors’ opinions.

In response, the Australian government committed $20 million over three years as part of the Pharmaceutical Benefits Scheme Access and Sustainability Package in 2015 to increase biosimilar uptake through awareness and educational campaigns.

In 2017, the government further collaborated with Medicines Australia, the GBMA, and the Pharmacy Guild of Australia to implement measures aimed at boosting biosimilar adoption. These efforts began with the introduction of Brenzys, a biosimilar form of etanercept, on December 1, 2017. Further steps were taken in 2018-19, including the provision of over $5 million over three years to continue the biosimilar awareness campaign.

Economic modelling conducted by GBMA estimates that each biosimilar listed on the PBS could return up to $100 million to the Health Budget, potentially easing the financial strain on the healthcare system.

In collaboration with the Australian Patient Advocacy Alliance (APAA), GBMA is working to identify key unfunded healthcare priorities for the 12 million Australians grappling with chronic diseases.

APAA CEO, Deidre Mackechnie, underscored the transformative potential of these funds for patients with complex conditions.

“We must look at all options for removing barriers to treatment, including cost,” said Mackechnie. “In a relentless cost-of-living crisis, too many of these patients are going without their medicines. Disadvantaged Australians in particular, are being forced to choose between paying their rent or mortgage and seeing a doctor.”

Marnie Peterson, CEO of the GBMA, further detailed the long-term benefits of biosimilars in managing chronic diseases, including cancers, rheumatoid arthritis, Crohn’s disease, and multiple sclerosis.

“Even with the anticipated arrival of so many biosimilars over the next five years, we still need to implement policies that will amplify their uptake among patients and their specialists,” said Peterson. “A strong biosimilar market in Australia will, in turn, help ensure that Australians continue to access world-class healthcare.”

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