Generics vs Brand Biologics: How Much Do They Really Cost?

When you’re prescribed a biologic drug - say, for rheumatoid arthritis, Crohn’s disease, or psoriasis - the price tag can feel like a punch to the gut. A single month’s supply might cost $2,104. That’s not a typo. For many patients, that’s more than their rent or car payment. But there’s another option: biosimilars. These aren’t your grandfather’s generic pills. They’re complex, scientifically advanced copies of biologic drugs, and they’re cutting costs by more than half. So why aren’t more people using them?

What Exactly Is a Biosimilar?

First, let’s clear up the confusion. When people say "generic," they usually mean a cheap copy of a small-molecule drug - like ibuprofen or metformin. Those are chemically identical to the brand version. But biologics? They’re made from living cells - proteins, antibodies, complex molecules. You can’t just mix chemicals in a lab and get the same thing. That’s why we don’t call them "generics." We call them biosimilars.

A biosimilar is highly similar to the original biologic. It’s not identical - no two living cells behave exactly the same - but it works the same way. The FDA requires rigorous testing to prove it’s just as safe and effective. No guessing. No shortcuts. By October 2025, the FDA had approved 76 biosimilars. That’s a lot - but still less than 10% of the 600 biologics on the U.S. market.

The Price Gap: Real Numbers, Real Savings

Here’s where it gets real. In the first half of 2025, the average 30-day cost for a brand biologic was $2,104. The biosimilar version? $919. That’s a 56.3% drop. For a patient on monthly treatment, that’s over $14,000 saved every year. And that’s just at launch.

Some biosimilars are even cheaper. Take Humira, the world’s best-selling drug. Before biosimilars hit the market, it cost about $80,000 per patient per year. After biosimilars arrived in 2023, prices dropped 80%. Today, Sandoz’s Hyrimoz - one of the top biosimilars - holds 14% of the U.S. market. Other biosimilars are gaining ground fast.

But here’s the kicker: the brand drug itself got cheaper too. Once biosimilars entered the market, the original Humira price fell by 25% on average. That’s competition doing its job. And it’s not just Humira. Across the board, biosimilars have driven down prices for reference biologics by 25-33%.

What About Out-of-Pocket Costs?

Price tags on pharmacy shelves don’t tell the whole story. What matters is what you pay at the counter. And here, biosimilars help even more. According to the CSRxP 2025 fact sheet, patients using biosimilars pay 23% less out of pocket than those on brand biologics. That’s huge for people on high-deductible plans or without good insurance.

Why? Because insurers and PBMs (Pharmacy Benefit Managers) often give better coverage to biosimilars. They’re cheaper to buy, so they’re cheaper to cover. Some plans even require you to try a biosimilar first before approving the brand drug. That’s called "step therapy," and it’s becoming more common.

How Much Have Biosimilars Saved Overall?

Since 2015, biosimilars have saved the U.S. healthcare system between $36 billion and $56 billion - depending on who’s counting. The U.S. Department of Health and Human Services says $56 billion. DrugPatentWatch says $36 billion. Either way, that’s billions of dollars that didn’t go to drug companies. In 2024 alone, $20 billion was saved.

And that’s just biosimilars. If you add in all traditional generics, total savings in 2023 hit $445 billion. Generics and biosimilars make up 90% of all prescriptions - but only 13% of total drug spending. That’s the power of competition.

Why Aren’t More People Using Them?

If biosimilars are cheaper, safer, and just as effective - why isn’t everyone on them? The answer isn’t science. It’s business.

Brand drugmakers have spent years building what experts call "patent thickets." That means filing dozens of minor patents around the original drug - covering delivery devices, dosing schedules, even packaging. Each patent adds another layer of legal protection. Biosimilar makers have to fight through them, one court case at a time. It can delay entry by years.

Then there’s the rebate system. PBMs get big kickbacks from brand drugmakers if they keep their drugs on the preferred list. That creates a "rebate wall." Even if a biosimilar is cheaper, the brand drug might still be pushed because the PBM makes more money from it.

And let’s not forget the cost to develop a biosimilar. It’s not cheap. Experts say it costs $100-250 million to get one approved. That’s why only about 10% of biologics expected to lose patent protection in the next decade have a biosimilar in the pipeline.

What’s Changing?

Good news: things are starting to shift.

The FDA just released new draft guidance to simplify biosimilar testing. Less clinical trials. Faster approvals. Lower costs for developers. That’s a big deal.

The Biden administration launched the "Biosimilars Action Plan" - a federal push to remove barriers to adoption. Health plans are being encouraged to favor biosimilars. Some states are even passing laws to make it easier for pharmacists to switch patients from brand to biosimilar without doctor approval.

Industry analysts at Evaluate Pharma predict biosimilar market share will jump from 15-20% today to 35-40% by 2030. That could mean $125 billion in annual savings - more than the entire U.K. National Health Service spends on prescriptions each year.

What This Means for You

If you’re taking a biologic drug right now, ask your doctor or pharmacist: "Is there a biosimilar available?" Don’t assume it’s not an option. Even if your plan doesn’t list it, ask them to check. Sometimes, switching is as simple as a new prescription.

And if you’re paying out of pocket? The savings could be life-changing. A $14,000 annual cut in drug costs means you can afford your rent, your groceries, your therapy - or just breathe easier.

Biosimilars aren’t magic. They’re science. And they’re working. The only thing holding them back is a system designed to protect profits - not patients.

What’s Next?

More biologics are coming off patent. In the next five years, dozens more will face biosimilar competition - including key drugs for diabetes, cancer, and multiple sclerosis. The savings will pile up. But only if we push for change.

The next time you hear someone say "biologics are too complex to copy," remind them: we’ve already done it. And we’ve saved billions.