Deciding between biobetter versus biosimilar development options based on net present value calculations

摘要

The growing share of biopharmaceuticals is paralleled by an increasing interest in biogenerics, as blockbuster biologics are approaching their patent expiries. Companies need to make decisions whether to invest in biosimilars or in biobetters with enhanced properties, the latter enabling favorable differentiation vis-à-vis the original product on the one hand and biosimilars on the other hand. Net present value (NPV) modelling was applied to compare the financial value of two categories of biobetters with the value of biosimilars, proving superiority of truly innovative biobetters. Regardless of the high economic attractiveness of such products, engaging in such projects might not be appropriate for every company and recommendations are provided which options should be preferred depending on a company's scientific and technical capabilities and business model.