During the past few years, governments within the emerging markets have become increasingly likely to finance complex biologics. Simultaneously, increasing numbers of these molecules are losing patent protection, opening the door for biosimilar competition.

Due to these competing trends, the Global Market Access practice at ISA has published a thought piece on how the battle for public financing between innovator multinational biopharmaceutical companies (MNCs) and biosimilar manufacturers might play out in these high-investment markets.

The publication, led by Cyrus Chowdhury, Vice President of the Global Market Access practice at Insight Strategy Advisors, explores the potential strategies biosimilar manufacturers might use to secure government financing and preferential pricing of their molecules in key emerging markets, while also identifying potential mitigation strategies for innovator MNCs looking to defend against biosimilar competition in these markets.

“Due to the low patient ability to pay in these markets, public financing is a key determinant of any complex biologic’s potential uptake. As a result, biosimilar manufacturers really have two strategic options when deciding which biosimilar molecules to pursue: those therapies whose corresponding innovator molecules have already secured public financing, or those which have not,” explains Mr. Chowdhury. “Regardless of which commercial strategy is pursued by the biosimilar entrant, the type of tendering process inherent in many of these markets will define both the risk and the potential market opportunity for these molecules.”

“In the meantime, innovator MNCs will need to develop strategies to guard against potential biosimilar entrants,” adds Dr. Rachel Beckerman, a consultant in the firm’s New York City office. “Through tactics such as portfolio purchasing, localisation initiatives, and a focus on quality perception, innovator MNCs may be able to preserve their market share as well as their price premium in these markets.”

The thought piece may be downloaded through the Insight Strategy Advisors website, or by following this link: Biosimilar Financing, Pricing and Tendering Models in the Emerging Markets. During the next few months, Mr. Chowdhury will be sharing further implications of these ongoing developments during speaking engagements around the world, including ISPOR International, ISPOR Europe, ISPOR Latin America, and the US-China Pharma Conference.. During the next few months, Mr. Chowdhury will be sharing further implications of these ongoing developments during speaking engagements around the world, including at ISPOR Europe in Madrid this November.

Interested parties can learn more about this issue by contacting Mr. Chowdhury directly at cyrus.chowdhury@insightstrat.com.