More on Biosimilars
I blogged a couple of days back on Biosimilars, and how I'm not sure that the pathway for the approval will be clear cut or the impact all it expected to be.
Well, the Biobusiness section of the latest issue of Genetic and Engineering and Biotechnology News (a great, free industry trade mag) had an major (linkable) article on the subject.
Biosimilars are Poised to Influence the Industry
A very good place to start for those interested in the potential of this business. The article describes the current landscape, European vs. US policy divergence, current time line, and companies that are poised to benefit. The companies include Barr (BRL), Dr. Reddy's (RDY), Ranbaxy, Sandoz (Novartis, NVS), Teva (Teva), and others. And yup, I have them all bullish in my CAPS port, but expect patience will be required with them.
The article also offers opinions as to how big a deal biosimilars will be. One such opinion, supported by industry organization BIO, is that of Dr. Grabowski, who believes the impact will be modest in terms of consumer savings, and that the revenue drain from primary branded manufacturers will not be so dramatic. In contrast, small molecule pharmaceutical revenue losses to the primary branded manufacturer are often quite large (80% revenue loss - to throw out an undocumented number off the top of my head).
Here is Dr. Grabowski's (long) industry analysis. Having only scanned it so far, I find it consistent with my modest expectations (for what that's worth - and it ain't much).