First 'biosimilar' of a biologic drug reaches US, finally

First 'biosimilar' of a biologic drug reaches US, finally

Biologics are injected or infused medicines for very serious conditions such as cancer and immune system disorders.

Swiss drugmaker Novartis AG last Thursday launched Zarxio, a biosimilar version of Amgen Inc.'s Neupogen, which boosts white blood cell production to prevent infections in certain cancer and other patients.

Unlike traditional pills made by mixing chemicals, biologic drugs are made from proteins grown in living cells, nourished in nutrient broths inside sterile bioreactor tanks.

The Novartis generics business, Sandoz, is selling Zarxio for 15 percent less than Neupogen, which costs about $325 to $500 per day, depending on dose.

Top pharmaceutical companies including Novartis, Pfizer Inc. and Merck & Co., which all make their own biologic drugs, are developing biosimilars of rival companies' top biologics.

Merck and partner Samsung Bioepis Co Ltd. got their first biosimilar approval Monday, in South Korea for a version of blockbuster immune disorder treatment Enbrel.

Biologic drug maker Amgen Inc., whose bestselling medicines face biosimilar competition from multiple drugmakers, is developing nine biosimilar versions of rivals' top biologic drugs, including four for various cancers.

While the revenue pie won't decrease that much, due to more patients starting on biosimilars, revenue for companies that created biologic drugs likely will fall and companies that bring multiple biosimilars to market should see sales spikes.