Outgoing Food and Drug Administration (FDA) Commissioner Scott Gottlieb on Tuesday said insurers must endure short-term risk to post long-term savings on biosimilars, Modern Healthcare reports.
Gottlieb made the comments during a Brookings Institute event, adding that there remain significant obstacles facing the biosimilar market.
While insurance plans would lose out on rebates by introducing a biosimilar onto their formularies, according to the report, the long-term benefits would offset those early losses.
“If they put the biosimilar on a formulary they might lose money for a quarter when they lose the rebates, but if they can convert their population over a two-year period to the biosimilar they will create a lot of competition that is going to lower their drug spend,” Gottlieb said.
To read the full report on Modern Healthcare, click here.