BIO supports US Congress to speed follow-on biologics pathway

Adding its comments on the recent US Congressional Budget Office's report on savings from the introduction of follow-on biologics or biogenerics (Marketletter July 7), the Biotechnology Industry Organization says it will encourage Congress to create a pathway for the approval of these product. "The CBO report shows that developing a pathway to review and approve follow-on biologics will result in cost savings to public and private purchasers of biologic products over a 10-year period. The report finds that most of the savings will be obtained several years after a follow-on pathway is established, reinforcing the need for Congress to develop and pass a responsible pathway this year that protects patient safety and preserves innovation. We are essentially leaving money on the table the longer we wait to implement a pathway," noted BIO chief executive Jim Greenwood.

"While follow-on biologics will provide real savings in the aggregate to the government and consumers, the estimated savings will constitute 0.065% of total health care spending over the next 10 years," he added, but warned that Congress must ensure proper incentives so relatively minor savings as a percentage of overall health care spending are not made at the cost of continued innovation.