Provincial Government Expanding Use of Biosimilars
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The provincial government is improving the sustainability of its public drug plans by expanding the use of biosimilars.
Biosimilars are highly similar versions of originator biologic drugs that are produced once the patent for the originator expires. Although there are no meaningful differences between biosimilars and the originator, biosimilars cost significantly less.
Health Minister Dorothy Shephard said “New Brunswick has been a leader in providing residents with coverage for new drugs in a timely manner. Increasing the use of biosimilars is expected to save over $10 million once fully implemented and the savings will increase as more biosimilars become available. Biosimilars have been proven to work just as safely and effectively as biologic drugs. Savings from increasing their utilization will be reinvested to support coverage of new therapies and improve patient access to more medications.”
Biologic drugs make up some of the province’s largest drug expenditures, and their costs are growing. In 2019-20, government spending on biologic drugs grew by 19 per cent to $63.8 million. In the same year, biologic drugs accounted for 29.4 per cent of drug costs but only represented 1.5 per cent of the total number of prescriptions paid.
In consultation with their physicians, about 3,000 beneficiaries of the province’s drug plans who are living with diseases such as inflammatory arthritis, inflammatory bowel disease, diabetes and psoriasis will have until Nov. 30 to switch from an originator biologic to the biosimilar version. After that time, the plans will no longer provide coverage for the originator biologic drug. Exceptional coverage may be requested for patients whose physicians determine they are medically unable to switch to a biosimilar.
The province’s plans provide subsidized drug coverage for about 135,000 people. In 2019-20, the province invested about $220 million in these drug plans.
More information on the Biosimilars Initiative is available on the provincial government's website.