Biologic drugs are some of the most expensive medicines on the market. They treat serious conditions like rheumatoid arthritis, Crohn’s disease, cancer, and psoriasis. But here’s the catch: brand biologics can cost over $80,000 a year per patient. Meanwhile, their cheaper alternatives-called biosimilars-are often priced more than half off. So why aren’t more people using them?
What’s the real price difference?
In the first half of 2025, the average 30-day prescription for a brand biologic in the U.S. cost $2,104. The same treatment, if taken as a biosimilar, cost just $919. That’s a 56% drop in price. For patients paying out-of-pocket, that means saving nearly $1,200 every month. Over a year, that’s more than $14,000 saved. Take Humira, for example. Before biosimilars hit the market, it was the most expensive drug in the U.S., with a list price of about $80,000 per patient annually. After biosimilars entered in 2023, the original drug’s price dropped 25% on its own-just because of competition. Meanwhile, biosimilars like Hyrimoz launched at 80% off the original price. Today, biosimilars make up 65% of the adalimumab market. That’s not just a discount-it’s a market shift.Why are biosimilars cheaper?
Unlike regular generic pills, which are exact copies of small-molecule drugs, biosimilars aren’t identical to their brand-name counterparts. Biologics are made from living cells-think yeast, bacteria, or animal cells-so they’re complex, messy molecules. You can’t just mix chemicals in a lab and get the same thing. That’s why biosimilars take years and hundreds of millions of dollars to develop. But here’s the key: they don’t need to be identical. The FDA only requires them to be highly similar in structure, function, and safety. That means biosimilar makers can skip expensive, lengthy clinical trials. They don’t have to prove the drug works from scratch. They just need to show it behaves the same way in the body. That cuts development costs dramatically. So while a traditional generic pill might cost 90% less than the brand, biosimilars typically launch at 40-50% off. And unlike generics, which often drop even further after multiple competitors enter, biosimilars tend to stay at that 50% discount level for years. That’s still massive savings.Who’s saving money-and who’s not?
Since 2015, biosimilars have saved the U.S. healthcare system between $36 billion and $56 billion, depending on who’s counting. In 2024 alone, they saved $12-20 billion. That’s billions of dollars that didn’t go to drug companies, insurers, or patients. But here’s the problem: those savings aren’t always reaching the people who need them. Pharmacy Benefit Managers (PBMs)-the middlemen who negotiate drug prices for insurance plans-often push for the most expensive brand biologics because they get bigger rebates from drugmakers. It’s called a “rebate wall.” Even if a biosimilar is cheaper, the PBM might still steer patients toward the brand because the rebate check is bigger. Doctors, too, sometimes default to the brand. Many weren’t trained on biosimilars. Some are worried about liability. Others are just used to prescribing what they’ve always prescribed. And patients? They’re often told, “This is the one your doctor recommends,” without knowing there’s a cheaper option that works just as well.
Why aren’t there more biosimilars?
There are 76 biosimilars approved by the FDA as of October 2025. Sounds like a lot? It’s not. There are about 600 brand biologics on the market. Only about 10% of the biologics expected to lose patent protection in the next 10 years even have a biosimilar in development. Why? Because brand drugmakers use legal tricks to block competition. They file dozens of patents-sometimes on tiny, insignificant parts of the drug’s delivery system or manufacturing process. This creates what experts call a “patent thicket.” A biosimilar maker might spend $150 million to develop a drug, only to get sued on 20 different patents. The legal battle can delay market entry for years. The FDA knows this. In September 2025, they released new draft guidance to simplify the approval process. They want to reduce unnecessary clinical trials and speed up reviews. But until the legal and financial incentives change, the pace of biosimilar entry will stay slow.What’s the future look like?
The good news? Biosimilar use is growing. Analysts at Evaluate Pharma predict that by 2030, biosimilars will make up 35-40% of the biologic market-up from just 15-20% today. That could mean $125 billion in annual savings. The Biden administration’s new Biosimilars Action Plan aims to fix reimbursement rules, encourage prescriber education, and push insurers to favor biosimilars. States like California and New York are already requiring pharmacists to notify patients when a biosimilar is substituted. And the savings don’t stop at the pharmacy counter. When a drug like Humira drops from $80,000 to $16,000 a year, it means fewer patients skip doses because they can’t afford it. Fewer hospitalizations. Fewer emergency visits. That’s savings for the whole system.
michael booth
December 5, 2025 AT 08:05Biosimilars are a game-changer for patients who can't afford $80K a year just to stay alive. The math is undeniable-50% savings isn't a nicety, it's a lifeline.
It's not about brand loyalty, it's about access. We need to stop treating healthcare like a luxury market.
Carolyn Ford
December 5, 2025 AT 10:13Wait-so you’re telling me that after spending billions on R&D, the brand companies are just sitting on inflated prices… and now they’re ‘competing’ by lowering prices by 25%? That’s not competition-that’s extortion with a side of PR.
And don’t get me started on PBMs-they’re the real villains here, not the drugmakers. They profit from confusion.
Heidi Thomas
December 7, 2025 AT 06:22You’re all missing the point. Biosimilars aren’t cheaper because they’re better-they’re cheaper because they’re *almost* the same. The FDA doesn’t require identicality, so how do we know they don’t have subtle long-term effects?
My cousin got a biosimilar for RA and had a weird flare-up six months later. No one tracked it. That’s not science, that’s gambling with human lives.
Alex Piddington
December 7, 2025 AT 13:33Let’s not forget the human cost of inaction. When patients skip doses because they can’t afford the brand, they end up in the ER, hospitalized, or worse.
Biosimilars aren’t just cost-effective-they’re ethically necessary. If we can save lives and money at the same time, why are we still debating this?
Education and transparency are the next frontiers. Let’s start there.
Libby Rees
December 9, 2025 AT 06:40It’s simple. The system is broken. Drug companies charge what they can. PBMs take what they’re offered. Doctors prescribe what they know. Patients pay what they’re told to.
But the data shows biosimilars work. The question isn’t if they’re safe-it’s why we’re still making it hard to use them.
Dematteo Lasonya
December 9, 2025 AT 14:23I’ve been on a biologic for seven years. My first biosimilar switch was scary. But my doctor walked me through it. My blood work stayed stable. My out-of-pocket dropped from $1,200 to $400.
It’s not magic. It’s just fair.
Rudy Van den Boogaert
December 10, 2025 AT 07:17People act like biosimilars are some newfangled experiment, but they’ve been used in Europe for nearly 20 years with zero safety issues.
And now we’re finally catching up? We’re not just behind-we’re dragging our feet on purpose.
It’s not about science. It’s about who profits.
Gillian Watson
December 10, 2025 AT 10:31Interesting how the UK’s NHS has been using biosimilars for over a decade and hasn’t had a single major scandal. Meanwhile, the US still treats them like suspicious knockoffs.
Maybe we’re overcomplicating this because we’re used to paying more for everything.
Jordan Wall
December 10, 2025 AT 18:36Look, I get it. Biosimilars = cheaper. But let’s be real-biologics are the pinnacle of pharmaceutical engineering. You can’t just replicate a living molecule like a Lego set. The patent thicket? That’s capitalism doing its job.
And PBMs? They’re just intermediaries-blame the broken reimbursement model, not the middlemen. 🤷♂️💊
Jessica Baydowicz
December 12, 2025 AT 12:14OMG I just switched to a biosimilar last month and I’m crying happy tears 😭
My copay went from $900 to $120. I can actually afford my meds now. I didn’t even know I had options!
PLEASE tell your doctor. Please. I was so scared but it’s literally the same thing. 🙏
Shofner Lehto
December 14, 2025 AT 11:09If you’re on a biologic and haven’t asked about biosimilars, you’re leaving money on the table-and possibly your health on the line.
It’s not about being cheap. It’s about being informed. Ask your pharmacist. Ask your doctor. Ask again.
Knowledge is power. And power means savings.
val kendra
December 15, 2025 AT 13:00Let’s cut through the noise: biosimilars aren’t generics, but they’re not snake oil either.
The FDA’s approval process is rigorous. They test for immunogenicity, pharmacokinetics, efficacy-you name it.
And yes, they save billions. But the real win? When a kid with Crohn’s can go to prom because their mom doesn’t have to choose between rent and insulin.
That’s the metric that matters.
Isabelle Bujold
December 15, 2025 AT 16:37It’s frustrating how much of this comes down to inertia. Doctors don’t prescribe biosimilars not because they’re unsafe, but because they’re not trained to think about them. Medical schools still teach brand names like gospel.
And insurance forms? They’re designed to favor the most expensive option because rebates are tied to list price, not actual cost.
The system is built to keep you paying more-even when cheaper, equally effective alternatives exist. It’s not a glitch. It’s the architecture.
George Graham
December 16, 2025 AT 19:26I used to think biosimilars were a compromise. Now I see them as justice.
People shouldn’t have to choose between their health and their rent.
It’s not radical to want affordable medicine. It’s basic human dignity.
John Filby
December 17, 2025 AT 19:55Just got my first biosimilar refill. My insurance covered 95% of it. I didn’t even know I could ask.
Thanks for this post. I’m telling my whole family.