Biosimilars offer clinical and economic value amid rising healthcare pressures

Make no mistake, embracing biosimilars can help to build a sustainable NHS.
Indeed, biosimilars can help reduce the growing pressure on the NHS. More than 15 million people in England – about a quarter of the population – live with at least one long-term health condition, accounting for roughly 70% of health and social care spending.

Chronic diseases such as diabetes, cancer and autoimmune disorders are on the rise: diabetes affects over 5 million people; cancer prevalence in the UK is projected to increase from 3 million to 5.3 million by 2040; and autoimmune diseases impact about one in ten individuals.

These trends are largely driven by an ageing population, with those aged 65 or over projected to rise to 27% by 2072, up from 19% in 2022.

The UK government’s recent £29 billion annual funding boost for the NHS is a welcome step. However, to ensure long-term sustainability, the system must look beyond funding and embrace innovative solutions that deliver clinical and economic value. Biosimilars should be placed at the centre of this strategic shift.

Maximising the adoption of biosimilars – cost-effective, clinically equivalent alternatives to original biologic drugs – is vital to strengthening the NHS’s economic resilience. While the UK has made progress, the full potential of biosimilars remains unrealised and adoption challenges persist.

Biologics are complex medicines produced from living organisms such as insulin or monoclonal antibodies. They offer targeted treatments that improve management of chronic diseases and enhance patient outcomes.

Biosimilars contain the same active substance as the reference biologic and demonstrate equivalent clinical efficacy, safety and product quality.

They become available once the reference biologic loses exclusivity or patent protection, offering a more affordable treatment alternative.

Following the launch of a biosimilar, competition typically increases, improving patient access and reducing prices.

This also stimulates innovation, potentially leading to new formulations and devices that enable quicker administration and greater convenience.

According to the British Biosimilars Association, biosimilars and generics already account for four out of five prescriptions in the UK.

With several biological medicines losing patent protection by 2028, the NHS could unlock up to £1 billion in savings for reinvestment into patient care and innovation.

This is just the beginning. With 85 patents for essential biologics set to expire by 2028, there is significant potential for further savings. Biologics are one of the largest drivers of NHS medicines costs, a trend echoed across Europe, where they account for 40% of pharmaceutical spending.

Savings from biosimilars adoption can be redirected to improve patient care. In oncology, savings could support diagnostics and supportive treatments.

For autoimmune diseases, they could fund access to advanced diagnostic tools. In diabetes care, savings could enhance education, prevention and treatment programmes.

The UK has shown commitment to biosimilar uptake. NHS England targets 100% of new patients requiring biological medicines to be initiated on the best-value biologic within three months of launch, and 80% of existing patients to switch within ten months.

NHS England has introduced a nationally set payment for selected high-cost biological medicines, including biosimilars.

Providers are reimbursed at a fixed rate, regardless of whether they use the originator or a biosimilar. This could allow providers to retain cost margins for reinvestment in local services.

According to the NHS, this model should result in increased adoption of new generics and biosimilars for priority molecules to a minimum of 80% within six to 12 months.

While promising, the UK could expand the fixed payment and incentive model to more biologics. Implementing a mechanism to track how biosimilar savings are reinvested would help patients, clinicians and policymakers understand their impact and build trust.

Continued communication of real-world data and robust pharmacovigilance is essential to reassure stakeholders of biosimilars’ long-term safety and effectiveness.

The Voluntary Scheme for Branded Medicines Pricing, Access and Growth (VPAG) requires biosimilar manufacturers to pay a rebate of at least 10% on sales, despite the savings they bring. Combined with corporation tax, this creates a dual burden that can deter market entry and reduce competition.

NHS tenders could benefit from a more holistic approach. Beyond price, criteria such as supply continuity, product quality and innovations in administration should be considered. Price-only tenders risk market exits and supply disruptions.

The NHS is at a crossroads. Biosimilars offer scalable solutions to key challenges – delivering cost efficiencies, improving access and enhancing resilience.

Addressing adoption barriers could unlock transformative benefits for society.

Beyond cost savings, biosimilars can fuel long-term innovation. By easing budget constraints, they enable reinvestment in research, diagnostics and next-generation treatments. Competition also drives improvements in drug delivery and patient-centric design.

Policymakers must create a commercially viable environment for biosimilars. Patients and professionals need assurance of their safety and effectiveness, and must understand that biosimilars are a strategic tool to free up NHS resources.

The time to act is now. Harnessing biosimilars can help build a more sustainable, equitable and innovative healthcare system for future generations. Let’s not miss the opportunity.

Josh Gissing is Cluster Head, UK, Ireland & Nordics at Biocon Biologics