Merck, which markets Remicade® in Europe, may have stepped over an anticompetitive line when Pfizer’s Inflectra® biosimilar was first made available, according to the U.K.’s Competition and Markets Authority. In the US, however, this activity would be considered routine. Certainly, nothing prevents this action and it would be fully expected, in terms of net costs.
Tag: rebates
Unlocking the Rebate Trap: A Challenge for Biosimilars
Using a pretty extreme example of rebating/pricing and utilization in the biologic marketplace, they found that if 50% of patients switched to a biosimilar, the payer could be paying more money for the drug category in total compared with simply accepting the high prices and rebates of the originator’s manufacturer. Under the scenario set forth, the health plan or insurer would in fact not be saving the money expected, because of a so-called “rebate trap.”