BIO issues statement on Congressional Budget Office analysis.
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Press Release Summary:
According to BIO, CBO estimate is based on troubling assumption that reimbursement rules for biologics would be changed in way that would financially incentivize physicians to switch patients to cheaper follow-on version of product at potential expense of patient safety and therapeutic efficacy. This change would penalize health care providers who dispense innovative product over lower-cost biosimilar since reimbursement amount would not cover full price of pioneering product.
Original Press Release:
CBO Estimate of Follow-On Biologics Savings Based on Troubling Assumption, Says BIO
WASHINGTON, D.C. (Friday, December 19, 2008) - The Biotechnology Industry Organization (BIO) today issued the following statement in response to a new Congressional Budget Office (CBO) analysis of estimated cost savings to the federal budget that may result from the introduction of biosimilars (also known as follow-on biologics) and a change in reimbursement rules for biologics:
"The CBO estimate is based on a troubling assumption that reimbursement rules for biologics would be changed in a way that would financially incentivize physicians to switch patients to a cheaper follow-on version of a product at the potential expense of patient safety and therapeutic efficacy. As noted in the CBO study, this change would penalize health care providers who dispense the innovative product over the lower-cost biosimilar since the reimbursement amount would not cover the full price of the pioneering product. The change would establish a perverse incentive to prescribe the lower-cost biosimilar regardless of efficacy or safety concerns.
"As we have said throughout this debate, we support a pathway to approve follow-on biologics but any such pathway must place ensuring patient safety - not potential cost savings - as the central concern."
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About BIO
BIO represents more than 1,200 biotechnology companies, academic institutions, state biotechnology centers and related organizations across the United States and in more than 30 other nations. BIO members are involved in the research and development of innovative healthcare, agricultural, industrial and environmental biotechnology products. BIO also produces the BIO International Convention, the world's largest gathering of the biotechnology industry, along with industry-leading investor and partnering meetings held around the world.
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