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Biosimilars: Transforming healthcare through cost savings and expanded access
In the evolving world of medicine, biosimilars have enormous potential to improve lives. As biologic therapies become increasingly integral to treating complex conditions such as cancer, autoimmune diseases, and diabetes, the introduction of biosimilars is revolutionizing the healthcare system. These highly similar alternatives to biologic drugs offer the potential to drive competition in the pharmaceutical market, reduce costs, and expand access to life-changing treatments. This growing market is unlocking new possibilities for patients, providers, and payers alike.
Given the rapid pace of biosimilar innovation and the complex regulations that govern their use, it’s essential to have partners who can assist with getting these therapies to the patients and providers who need them. Since the beginning of the biosimilar revolution, Cencora has been helping stakeholders across the healthcare spectrum better understand the intricacies of biosimilars and connecting the dots to bring these drugs to patients.
That said, let’s start at the beginning ...
What are biosimilars?
Biosimilars are biologic medical products that are nearly identical to an already approved reference biologic drug, also known as the originator or innovator product. Biosimilars are not identical to their originators because biologics are made from living cells and involve complex manufacturing processes. This natural variability means that while biosimilars and their reference products are highly similar, some minor differences in clinically inactive components may exist.
To gain approval in the United States, the U.S. Food and Drug Administration (FDA) requires biosimilars to demonstrate “no clinically meaningful differences” from their reference product in terms of safety, purity, and potency. The rigorous approval process involves extensive analytical, preclinical, and clinical testing to ensure these standards are met.
Biosimilars vs. generics
One of the most common misconceptions about biosimilars is that they are the same as generic drugs. While both aim to provide more affordable treatment options, the key difference lies in their complexity. Generic drugs are made from small molecules and are exact copies of their brand-name counterparts. Biosimilars, by contrast, are derived from larger, more complex biological molecules and are only required to be highly similar to their reference product, not identical.
Despite these differences, biosimilars and their reference products act the same way in the human body, providing equivalent therapeutic benefits. This distinction is critical for understanding how biosimilars fit into the broader pharmaceutical landscape.
The role of interchangeability
An important aspect of biosimilars is their potential to achieve interchangeability status, a regulatory designation that allows pharmacists to substitute a biosimilar for its reference product without requiring a prescriber’s approval. This is similar to how generic drugs can be substituted for brand-name drugs.
However, interchangeability is not automatically granted to all biosimilars. Manufacturers must conduct additional studies to demonstrate that switching between the biosimilar and its reference product does not affect safety or efficacy. Once a biosimilar is designated as interchangeable, it can significantly streamline access to these therapies.
Cencora supports healthcare providers navigating the complexities of interchangeability through tools like FormularyDecisions®. This proprietary digital platform features a Biosimilar Hub that offers a market landscape overview and a state-specific substitution law tracker. These tools empower providers by offering insights into products with interchangeability status, prescriber notification requirements, patient consent rules, and other regulatory nuances.
As the adoption of biosimilars grows, fostering confidence among providers and patients will play a crucial role in expanding their use.
Why biosimilars matter
Biologic therapies are among the most expensive treatments available, with costs often reaching tens of thousands of dollars annually. Biosimilars, which are typically priced 15–35% lower than their reference products, offer a powerful solution to this financial burden. By introducing competition into the biologics market, biosimilars can drive down prices for both patients and healthcare providers.
The impact of biosimilars on cost savings is already evident. A 2023 report revealed that biologics now account for 46% of U.S. drug spending, making the introduction of lower-cost biosimilars a significant opportunity for payers and providers.
As cost savings from biosimilars become more common, they may translate directly into increased access to treatments. For patients with chronic conditions like rheumatoid arthritis or cancer, affordability can be a significant barrier to care. Biosimilars have the potential to enable more patients to access life-changing therapies, improving outcomes and quality of life.
Cencora plays a vital role in this transformation by connecting biopharmaceutical manufacturers, healthcare providers, and payers to ensure biosimilars reach those who need them most. By facilitating access to innovative therapies, Cencora is helping to break down barriers for patients around the world.
As healthcare costs continue to rise, sustainability has become a key concern for payers and policymakers. Biosimilars contribute to the long-term viability of healthcare systems by offering high-quality, cost-effective alternatives without compromising on efficacy. These savings can be reinvested into other areas of patient care, such as preventive services and research.
Moreover, the growing biosimilar market and increased competition foster a cycle of innovation within the pharmaceutical industry. Originator companies are driven to improve their existing products or develop new therapies to maintain their market share, while biosimilar manufacturers are incentivized to refine production processes to offer even more affordable options. This dynamic benefits patients by increasing the availability of advanced treatments.
The evolving biosimilar market
Although biosimilars have been slower to gain traction compared to generic drugs, the market is growing rapidly. According to the FDA, only 17.5% of biologic product sales were subject to biosimilar competition in 2020. By October 2025, however, the number of FDA-approved biosimilars had risen to 76, with 60 already launched.
This growth is reflected in payer attitudes. A 2024 Cencora survey of managed care decision-makers found that more than half of payers now cover biosimilars for the same indications as their reference products. Cost savings remain the top driver of biosimilar adoption, followed by interchangeability and increased scientific clarity.
The FDA has also played a key role in fostering this growth through its Biosimilars Action Plan (BAP). The updated plan focuses on improving the efficiency of the biosimilar approval process, enhancing communication about biosimilars, and deterring anti-competitive practices in the biologics market. These efforts have laid the foundation for a thriving biosimilar ecosystem in the United States.
Cencora's role in biosimilar adoption
Optimizing the use of biosimilars across organizations
Through Cencora’s FormularyDecisions® platform, we provide tools and resources to help healthcare decision-makers in health systems, provider groups, and managed care organizations navigate regulatory and clinical complexities.
“FormularyDecisions provides healthcare decision-makers with access to up-to-date resources on biosimilars, including an easy-to-use Biosimilar Hub,” said Tasmina Hydery, PharmD, MBA, BCGP, FAMCP, Director, FormularyDecisions. “Together, these tools help organizations proactively prepare for formulary placement and contracting decisions."
Garnering insights from a wide breadth of managed care professionals
Our experts conduct research and surveys to understand the factors influencing biosimilar adoption. We help stakeholders stay on top of current trends with meticulously researched and curated resources, such as our payer trends white paper and our biosimilars pipeline report.
“Cencora’s Managed Care Network is a market research panel of more than 160 credible advisors that includes medical and pharmacy directors, healthcare executives, and other managed care experts who collectively represent 310+ million covered lives,” said Michelle Friedman, MPH, Senior Director, Value & Access Strategy. “The insights we gather and analyze from these experts and leaders are invaluable.”
The research panel can be accessed to:
- Test or validate value propositions and new or existing messages
- Better understand reimbursement barriers and evidentiary requirements
- Assess opportunities and threats from competitor products
- Understand the impact of changing market dynamics
Facilitating information exchanges among healthcare decision-makers
Cencora's FormularyDecisions® platform connects stakeholders across the healthcare continuum to accelerate access to biosimilars.
As a trusted industry partner all over the world, Cencora is helping to unlock the full potential of biosimilars and ensuring that patients, providers, and payers alike can benefit from their promise.
Tim Regan, Vice President, Market Access Consulting
Creating a healthier future with biosimilars
The rise of biosimilars marks a turning point in healthcare, offering new hope for more affordable, accessible, and sustainable treatment options. As the market continues to mature, the benefits of biosimilars will only grow more apparent, transforming the way biologic therapies are delivered and making a profound impact on patient care.
With organizations like Cencora leading the way, the future of biosimilars is bright, and the ripple effects will be felt across the healthcare landscape for years to come. By embracing this opportunity, we can build a healthier world for all.
