Healthcare and pharma
Biosimilar
A near copy of a biologic medicine, approved as having no meaningful clinical difference.
Last reviewedWhat does Biosimilar mean?
A biosimilar is a medicine that is highly similar to an already approved biologic (a drug made from living cells, such as an antibody or insulin) with no clinically meaningful differences in safety and effectiveness, as defined by regulators such as the US FDA and the European Medicines Agency. Unlike a generic copy of a simple chemical drug, it cannot be an exact copy, so development is slower and costlier, and prices usually fall less. Example: if a biologic sells at 1,000 a dose, a biosimilar might launch at a 30 percent discount, at 700, rather than the much deeper cuts common with generics. Uptake depends on doctors, payers and the rules on substitution.
Where does it come up in case interview prep?
Related terms
- Loss of exclusivity (LOE)When a drug's patents and other protections end and cheaper copies can launch.
- Value-based pricingSetting the price from what the product is worth to the customer.
- Price elasticity of demandHow strongly the quantity sold reacts to a change in price.
- DRG (diagnosis-related group)A system that pays hospitals a fixed amount per admission, based on the diagnosis and treatment.
- CapitationPaying a provider a fixed amount per person per period, whatever care they use.
- Medical loss ratio (MLR)The share of health insurance premiums spent on medical care and quality improvement.
- PMPM (per member per month)A cost or revenue figure divided by the number of members and months, used by health plans.
- ARPOB (average revenue per occupied bed)Hospital revenue divided by occupied bed days, a key measure for Indian hospital chains.