A booster shot: Biosimilars can greatly reduce India's healthcare costs

Millions of Indian households allocate a sizeable portion of their budgets to healthcare, pushing an estimated 32–39 million people into poverty each year. Many are forced to sell property or pawn family jewellery to afford treatment, highlighting the urgent need for cost-effective solutions to tackle rising diseases. Limited insurance coverage exacerbates the financial strain, increasing psychological distress. While advanced biologics offer hope, their unreasonable prices remain a major concern. However, biosimilars—nearly identical and more affordable alternatives to biologics—can significantly lower treatment costs by 50–75%. 

India, a frontrunner in biosimilar production, introduced Biosimilar Guidelines in 2012, which were revised in 2016. Despite the approval of nearly 100 biosimilars, challenges persist due to patent evergreening by multinational companies, delaying market entry through secondary patents and litigation. A multi-pronged strategy is essential, including differential pricing, proactive competition regulation by the Competition Commission of India, and stringent oversight by the Drugs Controller General of India. Integrating biosimilars into public health programs like Ayushman Bharat, bulk procurement, local manufacturing support, and faster regulatory approvals can drive wider adoption. With Indian pharmaceutical firms already supplying over 40% of generic medicines to the US, leading to Rs. 19,09,242 crore (US$ 219 billion) in savings in 2022, a similar opportunity exists in biosimilars. Strengthened policies and enforcement can cement India’s affordable healthcare leadership, ensuring millions' economic and health security.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.