BUDGET IMPACT ANALYSIS OF INTRODUCTION OF BEVACIZUMAB BIOSIMILAR IN THE UNITED STATES FROM A PAYER PERSPECTIVE

Bevacizumab-bvzr, a biosimilar of bevacizumab, was approved by FDA for the treatment of non-small cell lung cancer, renal cell carcinoma, glioblastoma, cervical cancer, and colorectal cancer. The present study was to conduct budget impact analysis (BIA) to understand the potential financial effect of introducing bevacizumab-bvzr in a US health plan. A BIA was developed using Microsoft Excel to evaluate the budget impact of bevacizumab-bvzr over a 3-year time frame from a US payer perspective. Target population was patients treated with bevacizumab originator for approved indications, estimated based on published literature for each year. A 70% market shift was assumed from originator to bevacizumab-bvzr by year 3. Drug cost of originator was based on average sales price (ASP). A biosimilar discount of 20% was applied . Cost for originator was estimated as its ASP plus 6% of the ASP. Cost for bevacizumab-bvzr was estimated as its own ASP plus 6% of the originator’s ASP. One-way sensitivity analyses were performed to examine the model robustness. In a hypothetical 10-million-member health plan, 503 patients were estimated to be treated with bevacizumab originator or biosimilar in year 1 and 676 patients in year 3. Switching from originator to bevacizumab-bvzr was associated with a total cost saving of $3,430,967 in year 1 ($0.03 per member per month [PMPM], $6,827 per patient per year [PPPY]) and $14,731,112 ($0.12 PMPM, $20,791 PPPY) in year 3, more than half attributed to patients with colorectal cancer. Varying biosimilar discount to 15% and 40% resulted in a cost saving of $2,573,225 and $6,861,934 respectively in year 1. The results suggest a potential cost saving with switching from bevacizumab originator to bevacizumab-bvzr, driven by lower cost of bevacizumab-bvzr. The exact cost saving estimates may vary depending on extra drug rebates and proportion of patients switching to bevacizumab-bvzr.