Drug Negotiations Will Drive Biosimilars as Patent Tactics Shift

Medicare’s drug price negotiations will push out more low-cost biosimilars if the landmark climate and health-care law changes incentives for makers of brand-name biologics, some drug pricing scholars said.

The Inflation Reduction Act will empower the government to negotiate drug prices for the first time starting in 2023. Biologics eligible for Medicare negotiation—a process that could take up to two years—must have been on the market for 11 years and not have a biosimilar version on its way to consumers.

Drugmakers may find themselves grappling with whether to subject their products to Medicare price negotiations or alter their patent strategies to let a biosimilar ...