According to the Congressional Budget Office, a viable market for biosimilar products may save consumers and health systems as much as $25 billion over 10 years as newly approved biosimilars drive the prices of biological drugs downward1. Such expectations of rapid growth amid significant cost savings are exerting considerable pressure on biopharma manufacturers as they strive to remain competitive within a volatile marketplace.
The expected growth of the biosimilars market has prompted the FDA and other legislative bodies around the world to introduce regulatory pathways to ensure these products’ safety and efficacy. In March 2010, the U.S. Congress passed the Patient Protection and Affordable Care Act2, which provides an approval pathway for biosimilar products. The Act defines a biosimilar as a product that is highly similar to the reference biological product, notwithstanding minor differences in clinically inactive components, and which exhibits no clinically meaningful differences with the reference product in terms of safety, purity, and potency. The Act stipulates that assessment of similarity/comparability should encompass the totality of data, including analytical data, animal testing data, and clinical data on the immunogenicity, pharmacokinetics, and pharmacodynamics of the biosimilar product.
The signing of the Patient Protection and Affordable Care Act, which includes the Biologics Price Competition and Innovation Act, paves the way for establishment of a regulatory framework in the U.S. by which manufacturers of biosimilars can secure marketing approval from the FDA. Not surprisingly, many companies engaged in development of biosimilars are seeking to ensure an efficient approval pathway as they strive to reduce time to market – processes that can be facilitated through appropriate outsourcing.
The manufacture of biosimilar drugs requires specialized capabilities, meticulous planning, highly skilled staff, and significant financial investment in equipment, technology, materials, and personnel. For many companies, such a level of investment can strain resources and dilute overall success. As a result, companies with biosimilar drug candidates are increasingly turning to contract manufacturing organizations (CMOs) and clinical research organizations (CROs) that already offer the proficiency, staffing, and state-of-the-art technology for developing and validating analytical methods, preclinical and clinical development strategies, and biomanufacturing processes. Manufacturers are increasingly outsourcing to CROs that provide a full spectrum of services encompassing drug discovery, development, and preclinical and clinical trial processes. These capabilities can include preclinical evaluations, study design, trial management, data collection, statistical analysis, and fulfillment of regulatory requirements. In addition to facilitating access to a wealth of solutions, technology, and equipment, CROs can provide a wide range of expertise, having often been involved in the development of the original biological products. Such expertise can be extremely useful to biosimilar manufacturers throughout all stages of development, particularly when technical issues arise.
A fundamental benefit of outsourcing is reduced pressure on companies’ own resources and the ability to free up capacities for innovative or high-margin products. Outsourcing can also enhance capital efficiency, enabling companies to fund their research cost-effectively, while obviating the need to invest in expensive equipment, software, and the personnel to operate them. Such savings can be crucial to a company before its biosimilar candidate has demonstrated viability in terms of regulatory and marketing potential.
Some outsourcing providers also have special expertise in applying techniques such as mass spectrometry to characterize and profile biologics. For biosimilars, these providers can also conduct comparative analyses with a reference product and offer high-quality immunoassay and bioanalytical services. In terms of clinical trials support, outsourcing providers can offer a wide range of technologies including electronic data capture (EDC) and management systems, and can also implement risk management plans through follow-up systems such as Web-based patient registries.
Although biopharmaceutical companies face a host of challenges in developing biosimilar products, these challenges present clear and promising market opportunities. Outsourcing may enable such companies to accelerate time to market in the most cost-effective manner. CMOs and CROs, with their wealth of knowledge, experience, understanding, technology, skills, and financial control, can make outsourcing a solution that companies can use to their advantage.
1Congressional Budget Office Cost Estimate. S.1695: Biologic Price Competition and Innovation Act of 2007. Washington, DC: Congressional Budget Office, June 25, 2008. United States Congress.
2The Patient Protection and Affordable Care Act. Public Law 111-148, March 23, 2010. http://www.gpo.gov/fdsys/pkg/PLAW-111publ148/pdf/PLAW-111publ148.pdf. Accessed May 5, 2011.