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The next big disruptor in health and wellness may not be a new drug, but rather, a smarter version of one.
Biosimilars are reshaping the way we think about cost, access and innovation in medicine. Biosimilars are medications that are highly similar to biologic drugs that have been approved by the U.S. Food and Drug Administration (FDA). For employers, this growing market offers an opportunity to contain specialty drug spending and reduce pharmacy plan costs without changing the care provided.
In this article, we will explore the evolving role of biosimilars and what they could mean for the future of pharmacy.
What is a biosimilar?
Biosimilars are made from the same sources as FDA-approved biologic medications. While not identical to these drugs—because biologics are made from living cells—biosimilars deliver the same clinical outcomes, according to the FDA. Biosimilars are also different from generic drugs, which are lower-cost versions of brand-name medications.
If you think of a brand-name drug like a cake recipe, a generic version is the same recipe. A biosimilar is like baking the same cake with the same ingredients and result, just in a different kitchen with a different oven.
Biosimilars are still relatively new to the market—the FDA greenlit the first biosimilar in 2015. But many biosimilars have since gained FDA approval. These medications are generally cheaper than their biologic counterparts.
Biosimilar competition has led to an average reduction of 53% in drug costs after five years in the market, according to Samsung Bioepis’ First Quarter 2025 Biosimilar Market Report. Another report by the IQVIA Institute estimated that biosimilars would save the U.S. health system a total of $181 billion between 2023 and 2027.
Biosimilars have the potential to significantly reduce pharmacy costs, especially in high-cost areas such as oncology, autoimmune diseases and rare disorders.
Consider Yusimry, a biosimilar to AbbVie’s Humira, a biologic drug used to treat inflammatory conditions. With a list price of $7,000 per month, Humira has historically been one of the costliest drugs, according to NPR. Yusimry is roughly 85% less than Humira.
Biosimilars like Yusimry can reduce pharmacy costs and help contain specialty drug spending. However, the biosimilar market does face challenges, particularly with rebates.
Drug manufacturers frequently offer pharmacy benefit managers (PBMs) rebates in exchange for preferential placement on formularies. Some PBMs will then designate these drugs with fewer prior authorization protocols to increase their uptake, according to Forbes.
What the future holds
The biosimilar pipeline is ripe. In 2024, the FDA approved Bkemv as the first interchangeable biosimilar to Soliris, a costly medication used to treat certain rare conditions.
The FDA has also approved Wezlana, a biosimilar to the psoriasis drug Stelara, and Ospomyv and Xbryk, biosimilars to Prolia and Xgeva, for osteoporosis and bone loss. Earlier this year, the FDA approved Merilog as a biosimilar to Novolog, a rapid-acting insulin aspart that helps manage blood sugar in patients with diabetes.
The global biosimilars market is projected to grow from $34.8 billion in 2024 to $93.1 billion by 2030, according to a 2025 Research and Markets report. Some of these biosimilars are utilized by a small number of patients, but the opportunity for savings is still great.
How employers can leverage biosimilars
Explore transparent PBM models, which can encourage members to try a biosimilar before the reference biologic through step therapy and a clinically based prior authorization process.
Educate employees on the safety, effectiveness and cost savings associated with biosimilars.
Consider tiered benefit designs to incentivize biosimilar use while allowing access to reference products when necessary.
Collaborate with knowledgeable partners to evaluate the clinical and financial impact of strategies and decisions related to biosimilars.
At Oswald, we stay up to date on the latest developments in the pharmacy space to help our clients make informed decisions about their employee benefits. We can help you find the right PBM and strategy for your needs.
Research support from: Garrett Francz, Mary Radachy and Tim Root.
For more information, contact us below or visit our Employee Benefits page here.
