Unlike generics, biosimilars are not highly discounted to it’s patented molecule.
Biosimilars are in average around 15-20% lesser price tag (considering WAC*) as compared to the patented molecule.
WAC – Wholesale acquisition costs.
Development of a biosimilar may take in average around 4-8 years. And cost of the development may reach 100-150 million. Plus there will be regulatory fees. On the other hand, a generic version of a small- molecule drug, costs $1 million to $2 million and takes approximately 2 years to develop. That is the reason, generics are much cheaper as compared to it’s patented drug.
Also Biologic agents are more expensive. Even the manufacturing process, which uses live organisms, is more complex.