When you hear the word generic, you probably think of cheap pills that work just like the brand-name version. But when it comes to biologic drugs, that’s not the whole story. Biologics aren’t made in a lab like regular pills-they’re grown in living cells, making them incredibly complex. That’s why their copies aren’t called generics. They’re called biosimilars. And the cost difference between a brand biologic and its biosimilar isn’t just a little cheaper-it’s often more than half the price.

What’s the real price gap?

In 2025, the average 30-day prescription for a brand biologic cost $2,104. The biosimilar version? $919. That’s a 56% drop in price. For patients paying out of pocket, that means savings of nearly $1,200 per month. Multiply that by millions of people with conditions like rheumatoid arthritis, Crohn’s disease, or cancer, and you’re talking about billions in annual savings.

Take Humira, the best-selling biologic in U.S. history. Before biosimilars arrived in 2023, a single year’s treatment cost about $80,000. Now, the same drug-thanks to biosimilars like Hyrimoz-costs as little as $16,000 a year for many patients. That’s an 80% discount. And it’s not just Humira. Almost every major biologic now has at least one biosimilar competitor, and prices keep falling as more enter the market.

Why are biosimilars cheaper but not identical?

Traditional generics are exact chemical copies of small-molecule drugs. Biosimilars aren’t. Biologics are made from living organisms-yeast, bacteria, or animal cells. Even tiny changes in how they’re grown or processed can affect the final product. That’s why the FDA requires biosimilars to be “highly similar” with no clinically meaningful differences in safety or effectiveness. They don’t need to be identical. But they do need to work the same way.

This complexity is also why biosimilars cost more to develop than regular generics. While a typical generic pill might cost $1 million to bring to market, a biosimilar can cost between $100 million and $250 million. That’s why there aren’t dozens of biosimilars for every brand biologic-yet.

How much have biosimilars saved the system?

Since the first biosimilar was approved in 2015, the U.S. healthcare system has saved at least $36 billion, according to DrugPatentWatch. Other estimates, like those from the Department of Health and Human Services, put the total closer to $56 billion. Either way, it’s massive. In 2024 alone, biosimilars saved $12-20 billion.

Here’s the kicker: biologics make up only 5% of all prescriptions in the U.S., but they account for over half-51%-of total drug spending. That’s why saving money here matters more than anywhere else. If you’re paying for insulin, a cancer drug, or a treatment for multiple sclerosis, you’re likely paying for a biologic. And if you’re paying full price, you’re paying more than you need to.

Why aren’t more people using biosimilars?

Despite the savings, only about 15-20% of biologic prescriptions are filled with biosimilars. That’s far below the 90% market share that regular generics hold. Why?

One reason: patent thickets. Brand drug companies file dozens of overlapping patents to delay competition. Even after the original patent expires, they add new ones on delivery devices, dosing schedules, or manufacturing tweaks. These tactics can delay biosimilars for years.

Another reason: rebate walls. Pharmacy Benefit Managers (PBMs)-the middlemen between insurers and drugmakers-get big rebates from brand biologic companies. Those rebates make it financially risky for insurers to switch to cheaper biosimilars. Even if a biosimilar is 70% cheaper, the PBM might still prefer the brand because it pockets a bigger cut.

And then there’s confusion. Some doctors and patients still think biosimilars are “less effective” or “experimental.” But the FDA says they’re not. Every approved biosimilar has been tested in clinical trials and shown to work just like the original. In Europe, where biosimilars have been around longer, adoption rates are over 70%.

What’s changing in 2025 and beyond?

The FDA is making it easier and cheaper to develop biosimilars. In September 2025, they released new draft guidelines that reduce the need for repetitive clinical trials. That means more companies will enter the market, and prices will drop even further.

The Biden administration’s Biosimilars Action Plan is pushing for changes in how Medicare and Medicaid reimburse these drugs. Right now, providers get paid the same for a biosimilar as a brand biologic, which disincentivizes switching. New rules aim to reward providers who choose lower-cost options.

Industry analysts predict biosimilar market share will jump from 20% to 35-40% by 2030. That could mean over $125 billion in annual savings. For patients, that means fewer people skipping doses because they can’t afford their meds. For the system, it means less strain on budgets and more money for other care.

What does this mean for you?

If you’re taking a biologic drug right now, ask your doctor or pharmacist: Is there a biosimilar available? Is it covered by your insurance? If you’re paying cash, the savings could be life-changing.

Some biosimilars are already priced at less than half the brand. For example:

• Adalimumab (Humira) biosimilars: $16,000-$25,000/year vs. $80,000
• Etanercept (Enbrel) biosimilars: $18,000/year vs. $50,000
• Trastuzumab (Herceptin) biosimilars: $15,000-$20,000/year vs. $70,000

These aren’t hypothetical numbers. These are real prices from 2025 pharmacy data.

Don’t assume your insurance will automatically switch you. You might need to ask. Some plans still require prior authorization for biosimilars, even when they’re cheaper. Others don’t cover them at all. But the trend is clear: biosimilars are here, they’re safe, and they’re saving money.

What’s next?

More than 600 biologics are on the market. Only about 76 have biosimilars approved so far. That means hundreds more are coming. Drugs for diabetes, multiple sclerosis, and rare diseases are next in line. The next decade could see biologic prices drop by 70-80% across the board.

The real question isn’t whether biosimilars work. It’s whether the system will let them compete fairly. Right now, the rules still favor expensive brands. But that’s changing. And for patients who’ve been priced out of care, that change can’t come soon enough.