Tuesday, January 20, 2015

A Postmarketing Surveillance Effort for New Biosimilar Agents

Stanton R. Mehr, President, SM Health Communications LLC

Consider the following hypothetical scenario: A new infliximab biosimilar is approved for use in patients with rheumatoid arthritis and Crohn’s disease. Nine months after its introduction, an unexpected safety problem is revealed in 8% of patients—severe vestibular dysfunction, resulting in disabling imbalance and dizziness. How would this adverse effect be linked with the new drug and how quickly would this link be established? That may be dependent on how the drug is identified (with the same or different nonproprietary name as the innovator) and the capability of the adverse effect reporting system. It is one thing to monitor for side effects associated with the reference drug, but it is quite another to be able to identify something that is entirely new.

In November 2013, the Academy of Managed Care Pharmacy hosted a Task Force conference discussing the highly anticipated approval process for new biosimilar agents and how to monitor their safety and efficacy. The results of this Task Force was published January 2015 the Journal of Managed Care and SpecialtyPharmacy.

The Food and Drug Administration (FDA) was charged by Congress with implementing the pathway to approval, called the 351(k) pathway. Over the years, the FDA has been cautious about releasing details of the biosimilar regulations; many in the United States (including clinicians and manufacturers of innovator products) are concerned about the efficacy and safety of biosimilars, which are not simply generic copies of their biologics. The experience of the European Medicines Agency may be instructive here: Since 2007, it has approved several biosimilars, including versions of filgrastim, epoetin, infliximab, and follitropin, without any significant red flags in terms of safety or efficacy. This extensive clinical use of biosimilars in Europe does not erase all concerns about these agents, however.

There is no shortage of expensive biologics whose patents have expired or are near expiration. An unpublished analysis from Express Scripts estimated that the introduction of biosimilars for 11 biologic agents whose patents have expired could result in more than $250 billion savings for the US health system over 10 years. Two important caveats to this estimate are (1) this analysis is was based on 30% savings per prescription (today, this is more conservative, at 15% to 20%, according to our market research) and (2) it does not consider the potential costs of any new and unforeseen adverse drug events (ADEs) resulting from the use of new biosimilars. However, the second point is of more relevance to this discussion.

Biosimilars are not exact copies of the innovator, or reference, agent. Biologics are complex proteins, and differences in manufacturing processes alone are enough to result in unique physical structures—for example, a new fold in the molecule may occur, which may expose more or less of its surface to target cell receptors. It may also result in slightly different chemical structures, such as glycation, which may not result in clinical differences. Does this mean that biosimilars are as efficacious and have the same safety profile as the reference medications? Although the ordinary use of biologics like TNF-alpha inhibitors in practice cannot exactly be called safe, the experience accumulated over more than a decade has provided a solid picture of their safety profiles.

The 351(k) pathway does not require large-scale clinical trial programs to prove that the use of a biosimilar results in the same outcomes as the innovator product, so we may not have full confidence that the biosimilar agent performs exactly the same way that the innovator drug does. For this reason, policy experts cite the need for a mechanism to evaluate real-world outcomes with newly approved biosimilar agents, including a method of collecting data on the long-term use of these biologics. This effort would also be helpful to validate biosimilars’ effectiveness compared with their reference products.

The Task Force’s recommendations may start the ball rolling to establish a mechanism for how this postmarketing surveillance will be performed, who will coordinate it, and how any results or safety signals will be reported. I suggest you read the report. It opens a window onto the current pharmaceutical surveillance system and raises important questions.


SM Health Communications provides writing, consulting, and innovative market research services for the payer markets. Its proprietary P&T Insight™ virtual P&T Committee program is the leading mock P&T Committee product in the field. We’ve participated in many market research projects involving biosimilar development and launch, from the point of view of the biosimilar and the innovator drug manufacturer. For more information, please visit www.smhealthcom.com or contact Stanton R. Mehr, President, at stan.mehr@smhealthcom.com.

Wednesday, January 7, 2015

Biosimilars: A Time of Reckoning Has Arrived


Stanton R. Mehr, President, SM Health Communications LLC

On Wednesday January 8th, 2015, a Food and Drug Administration Advisory Committee unanimously recommended that the first agent to gain biosimilar status through the 351(k) pathway be approved. This has been a very long, slow road to reach a point that Europeans passed more than 7 years ago. Finally, however, the FDA is preparing to approve Sandoz’s version of filgrastim (brand name, Zarzio), and perhaps for all of the indications of Amgen’s innovator product, Neupogen. The FDA’s final decision is expected to be announced in March.

This move may finally open the door to other 351(k) applications and decisions, not only for filgrastim biosimilars but for epoetin, infliximab, adalimumab, and a number of other long-marketed biologics.

In announcing the decision, the health care community at large hopes that the FDA will finally go public with other associated and long-awaited determinations, which will have implications for biosimilar utilization, coding, and reimbursement.

Biosimilar naming conventions, indication extrapolation, and interchangeability designations are eagerly anticipated by the U.S. payer market. Market research tells us a great deal about how health plans, insurers, and pharmacy benefit managers will react to the potential choices each of these nuances present. Payers believe that FDA decision making in each area will significantly affect not only how quickly biosimilars are accepted onto drug formularies but how soon competitive forces may rise to lower biologic prices. For example, if the FDA judges a biosimilar to not be interchangeable with the innovator product, and also limits its approval to one indication rather than all four, this may force the manufacturer to offer large discounts to gain market access. In this situation, manufacturers trying to retain their marketshare may decide to similarly cut prices or add to rebates, to coax payers to prefer their biologic. This may compel payers to move from 4-tier formularies to 5-tier structures (i.e., from one specialty tier to preferred and nonpreferred specialty tiers).

The initial answers are finally right around the corner. We are all awaiting that green light. One thing is known: whichever way the FDA decides to go, we have a pretty good idea which way the payers will turn.  

SM Health Communications provides writing, consulting, and innovative market research services for the payer markets. Its proprietary P&T Insight™ virtual P&T Committee program is the leading mock P&T Committee product in the field. We’ve participated in many market research projects involving biosimilar development and launch, from the point of view of the biosimilar and the innovator drug manufacturer. For more information, please visit www.smhealthcom.com or contact Stanton R. Mehr, President, at stan.mehr@smhealthcom.com.