These meds could allegedly save health plans and consumers $71 billion during the first year of availability, according to an analysis by Express Scripts, the big PBM that’s caught up in a takeover battle for a rival.

Here are a couple of examples: the largest estimated savings of $40.7 billion over 10 years is found in erythropoietins, the class of meds used to treat anemia. There are 350,000 dialysis patients and 450,000 oncology patients using erythropoietins. And with 15 million Americans diagnosed with diabetes, more than 25 percent could move to a generic biotech and save $797 million in the first year. The analysis also forecasts state-by-state savings.

“Given the savings potential for plan sponsors and the patient, we believe it is critical that an approval pathway for generic biotech medicines be established,” says Steve Miller, Express Scripts chief medical officer and vice president, specialty pharmacy. PBMs, of course, are making huge profits by pushing generics instead of brand-name pills to health plans.

The data follows the introduction yesterday of a bill to get the FDA provide guidelines for generic biologics, which cost tens of thousands of dollars a year. The bi-partisan bill was introduced with much hoopla by four senators - Chuck Schumer (D-NY), Hillary Rodham Clinton (D-NY), Dave Vitter (R-LA) and Sue Collins (R-ME) and two members of the house - Henry Waxman (D-CA) and Jo Ann Emerson (R-MO).

Whether such savings will be realized remains to be seen. But in the absence of ‘me-too’ biologics in most therapeutic categories, health plans are smacking their corporate lips at even the hint of a possibility.

[tags]Biologics, Generics[/tags]