Generics vs Brand Biologics: How Much Do They Really Cost?

When you’re prescribed a biologic drug - say, for rheumatoid arthritis, Crohn’s disease, or psoriasis - you might see a price tag of $80,000 a year. That’s not a typo. For many patients, that’s more than their annual rent. But what if there was a version of the same medicine that works just as well, costs less than half, and has been approved by the FDA as safe and effective? That’s where biosimilars come in.

What Exactly Is a Biosimilar?

You’ve heard of generic pills - the cheap versions of drugs like metformin or lisinopril. Those are simple chemicals made in labs. Biosimilars are different. They’re copies of biologic drugs, which are made from living cells - not chemicals. Think insulin, antibodies, or proteins grown in bioreactors. Because they come from living systems, no two batches are exactly alike. That’s why biosimilars aren’t called “generics.” They’re “highly similar,” with no clinically meaningful differences in safety or effectiveness.

The FDA approved the first biosimilar, Zarxio, in 2015. Since then, 76 have been approved as of October 2025. That sounds like a lot - until you realize there are about 600 biologics on the market. Most still have no competition.

How Much Do Biosimilars Save?

The numbers don’t lie. In the first half of 2025, the average 30-day cost for a brand biologic was $2,104. The biosimilar version? $919. That’s a 56.3% drop. For a patient on monthly injections, that’s over $14,000 saved per year.

Take Humira, the world’s best-selling drug for years. Before biosimilars hit the market, it cost about $80,000 per patient annually in the U.S. After patents expired in 2023, biosimilars entered with discounts averaging 80%. By mid-2025, they held 65% of the market. One biosimilar, Hyrimoz by Sandoz, captured 14% of sales on its own - and it costs less than $16,000 a year.

Patients aren’t just saving on the drug price. Out-of-pocket costs - what you pay at the pharmacy - are 23% lower with biosimilars. That’s huge for people on high-deductible plans or without good insurance.

Why Aren’t More People Using Them?

If biosimilars save so much money, why isn’t everyone switching?

One reason: the system is rigged. Brand drug companies don’t just rely on patents - they build patent thickets. That means filing dozens of minor, overlapping patents to delay biosimilar entry. Some biologics have over 100 patents. Even after the main patent expires, legal battles can delay competition for years.

Then there are Pharmacy Benefit Managers (PBMs). These middlemen negotiate rebates with drugmakers. But here’s the catch: they often get bigger rebates from expensive brand drugs than from cheaper biosimilars. So even if a biosimilar is cheaper, the PBM pushes the brand version because it pays them more. It’s not about saving money - it’s about who gets the kickback.

Doctors and pharmacists also get confused. Many still think biosimilars are “less effective.” But the FDA says they’re not. A 2025 Harvard Medical School study found zero difference in outcomes between patients on brand biologics and those on biosimilars.

How Much Have Biosimilars Saved So Far?

The savings are massive - but different groups report different numbers. The U.S. Department of Health and Human Services says biosimilars have saved $56 billion since 2015, with $20 billion saved in 2024 alone. Other analysts, like DrugPatentWatch, estimate $36 billion total since 2015. Either way, that’s billions in savings for patients, insurers, and taxpayers.

And it’s not just biosimilars. When a biosimilar enters the market, the brand drug often lowers its price too - by an average of 25%. That’s called the “spillover effect.” So even if you don’t switch, you still pay less.

In 2023, all generic and biosimilar drugs combined saved the U.S. healthcare system $445 billion. That’s more than the entire annual budget of the Department of Education. And yet, generics and biosimilars make up 90% of all prescriptions - but only 13% of total drug spending.

What’s Holding Back the Next Wave?

There are over 100 biologics expected to lose patent protection in the next 10 years. But only about 10% of them have a biosimilar in development. Why?

Developing a biosimilar costs between $100 million and $250 million. That’s 10 times more than making a regular generic. It takes 7-10 years. And the approval process is still more complex than it needs to be.

The FDA is trying to fix this. In September 2025, they released new draft guidelines to simplify testing and cut unnecessary clinical trials. That could shave years off development time and lower costs.

The Biden administration’s Biosimilars Action Plan also aims to fix reimbursement rules so that doctors and pharmacies are rewarded for choosing cheaper options - not punished.

What’s the Future Look Like?

By 2030, biosimilar market share could jump from 15-20% to 35-40%. That could mean $125 billion in new annual savings - enough to cover free insulin for every diabetic in the U.S. for five years.

But that future isn’t guaranteed. Without policy changes - like banning patent thickets, forcing PBMs to pass savings to patients, and creating clearer reimbursement rules - the savings will stay locked away.

Right now, the U.S. spends more on drugs than any other country. And biologics are the biggest reason why. Biosimilars aren’t a magic fix - but they’re the most powerful tool we have to bring prices down without sacrificing care.

What Should You Do?

If you’re on a biologic drug:

• Ask your doctor if a biosimilar is available and appropriate for you.
• Check your insurance formulary - some plans cover biosimilars at lower copays.
• Don’t assume your current drug is the only option. Many patients switch without any loss in effectiveness.
• Use tools like GoodRx or NeedyMeds to compare prices. Biosimilars often cost less even before insurance.

If you’re a caregiver, advocate, or patient group member: push for transparency. Demand that insurers and PBMs disclose how they choose which drugs to cover. The system only changes when people speak up.

Why This Matters Beyond the Price Tag

It’s not just about saving money. It’s about access. When a drug costs $80,000 a year, many people skip doses, split pills, or drop out of treatment entirely. That leads to worse outcomes - more hospital visits, more surgeries, more lost work days.

Biosimilars change that. They make life-saving treatments possible for people who couldn’t afford them before. And they force the entire system to stop treating medicine like a luxury product.

The science is solid. The savings are real. The only thing standing in the way is a broken system that still profits from high prices.

It’s time to change that.

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