Industry that Saved $3.1 Trillion Since 2014 at Great Risk Without Immediate Action
WASHINGTON (September 5, 2024) — The Association for Accessible Medicines, the trade association representing generic and biosimilar manufacturers, today released its 2024 U.S. Generic & Biosimilar Medicines Savings Report. AAM’s annual savings report reveals that the use of Food and Drug Administration (FDA) approved generic and biosimilar medicines created $445 billion in savings in 2023 for patients, employers, taxpayers, and the healthcare system—over $3 trillion in the last decade.
However, the long-term outlook for generic and biosimilar competition hinges on addressing the barriers to development and adoption of these lower-cost medicines. Without action to strengthen generic and biosimilars markets, many of these lower-cost medicines may disappear and patients’ access to care will suffer.
On the eve of the 40th anniversary of the Hatch-Waxman Act, we stand at a critical crossroads,said David Gaugh, Interim President and CEO of AAM.With manufacturing facilities located in nearly half of U.S. states, today’s generic and biosimilar manufacturers form an integral and essential part of the healthcare system. But we cannot afford to take our generic and biosimilar industries for granted.
Today, biosimilars offer prices, on average, more than 40 percent lower than their brand biologic at the time of biosimilar launch. Biosimilars, which are approved by the FDA as highly similar to and with no clinically meaningful differences than corresponding biologics, saved patients over $12.4 billion in 2023.
Craig Burton, Executive Director of the Biosimilars Council added,
Even as the generic drug market exhibits increasing fragility, biosimilar medicines continue to demonstrate their promise of lower costs and greater access for patients but are nevertheless struggling to fulfill their potential in the face of brand rebate and patent schemes. Strong and swift legislative and regulatory action to encourage biosimilar competition is vital.
Additional highlights from AAM’s 2024 Savings Report include:
- Total Generic and Biosimilar Savings for 2023: $445 billion, $37 billion more than in 2022
- Total Generic and Biosimilar Savings for Past 10 years: more than $3.1 trillion
- Total Generic and Biosimilar Savings in Medicare for 2023: $137 billion, $2,672 per beneficiary
- Total Generic and Biosimilar Savings in Commercial Plans for 2023: $206 billion
- Generics and biosimilars represent 90% of prescriptions filled, but only 13.1% of prescription drug spending
- Generics and biosimilars represent only 1.2% of all healthcare spending
- Biosimilars have generated $36 billion in savings since 2015, and have been used in almost 2.7 billion days of patient therapy with no unique clinical challenges
- Biosimilars have expanded patient access to care by 495 million days of therapy
The 2024 U.S. Generic & Biosimilar Medicines Savings Report was developed in partnership with the IQVIA Institute, continuing 14 years of collaboration to quantify savings for America's patients and the U.S. healthcare system through the use of generic and biosimilar medicines.
For media inquiries, contact the Communications department at media@accessiblemeds.org.
About AAM
The Association for Accessible Medicines, your generics and biosimilars industry, is driven by the belief that access to safe, quality, effective medicine has a tremendous impact on a person’s life and the world around them. Generic and biosimilar medicines improve people’s lives, improving society and the economy in turn. AAM represents the manufacturers of finished generic pharmaceuticals and biosimilars, manufacturers of bulk pharmaceutical chemicals, and suppliers of other goods and services to the generic industry. Generic pharmaceuticals are 90 percent of prescriptions dispensed in the U.S. but only 13.1 percent of total drug spending.
About the Biosimilars Council
The Biosimilars Council, a division of the Association for Accessible Medicines (AAM), works to ensure a positive environment for patient access to biosimilar medicines. The Biosimilars Council is a leading source for information about the safety and efficacy of more affordable alternatives to costly brand biologic medicines. Areas of focus include public and health expert education, strategic partnerships, government affairs, legal affairs and regulatory policy. More information is available at www.biosimilarscouncil.org.