BIO’s Jim Greenwood raises familiar concerns: authorizing generics would rob biotechs and their investors of financial incentives, and the science isn’t there yet to ensure safe and effective follow-ons, as generic biologics are often called.

These are valid points. No one really wants to put biotechs out of business, though. The issue is affordability. With many biologics costing thousands per month, the economic burden can’t be handled by the average patient and, not surprisingly, third-party payers (the insurers) are scrambling to weigh benefits, risks and study patient outcomes.

Managed-care experts say competition is the answer, but there’s not too much, yet. Amgen recently created a stir by pricing its new Vectibix treatment for colon cancer at a 20 percent discount to ImClone System’s Erbitux, and grabbed market share. And there are signs that sales of psoriasis drugs have hit a rough patch.

But these are the exceptions, not the rule in the pricey world of biologics. For now, patients and insurers should brace themselves for higher costs, no matter what legislation shows up in Congress.

[tags]Amgen, Biologics, Biotech, Erbitux, Generics, ImClone Systems, Jim Greenwood, Vectibix[/tags]