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The impact of an ‘evergreening’ strategy nearing patent expiration on the uptake of biosimilars and public healthcare costs: a case study on the introduction of a second administration form of trastuzumab in The Netherlands

Author

Listed:
  • Ghyli Kirshner

    (NZa)

  • Peter Makai

    (Erasmus University Rotterdam
    ACM)

  • Chiara Brouns

    (Zorgverzekeraars Nederland)

  • Lonneke Timmers

    (National Healthcare Institute)

  • Ron Kemp

    (Erasmus University Rotterdam
    ACM)

Abstract

In this paper, we explore dynamic market share and public healthcare costs of trastuzumab’s evergreening (subcutaneous) variant during introduction of trastuzumab’s competitive biosimilar variants in the Netherlands. We used a time series design to assess dynamic market share of trastuzumab’s evergreening variant after introducing trastuzumab’s biosimilar variants, focusing on the number of treatments and patients. The public healthcare costs of this evergreening strategy were estimated using administrative claims data. Our results show that the original trastuzumab was completely replaced by the subcutaneous and biosimilar variants. The uptake of the subcutaneous form peaked at 50% market share but after the introduction of biosimilars progressively reduced to a market share of 20%, resulting in a more competitive market structure. The public healthcare costs for trastuzumab significantly decreased after the introduction of the biosimilars. After the introduction of the biosimilars, a substantial price drop is visible, with the subcutaneous version, still under patent, also falling sharply in price but less strongly than the iv/biosimilar version. As the costs are publicly funded, we recommend a more explicit societal debate to consider if the potential benefits of subcutaneous Herceptin® (and other similar medicines) are worth the additional costs, and at which price it should be reimbursed as the part of the benefit package.

Suggested Citation

  • Ghyli Kirshner & Peter Makai & Chiara Brouns & Lonneke Timmers & Ron Kemp, 2024. "The impact of an ‘evergreening’ strategy nearing patent expiration on the uptake of biosimilars and public healthcare costs: a case study on the introduction of a second administration form of trastuz," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 25(7), pages 1147-1163, September.
  • Handle: RePEc:spr:eujhec:v:25:y:2024:i:7:d:10.1007_s10198-023-01648-w
    DOI: 10.1007/s10198-023-01648-w
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    References listed on IDEAS

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    1. Dwivedi, Gaurav & Hallihosur, Sharanabasava & Rangan, Latha, 2010. "Evergreening: A deceptive device in patent rights," Technology in Society, Elsevier, vol. 32(4), pages 324-330.
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    3. Jorge Mestre-Ferrandiz & Adrian Towse & Mikel Berdud, 2016. "Biosimilars: How Can Payers Get Long-Term Savings?," PharmacoEconomics, Springer, vol. 34(6), pages 609-616, June.
    4. Evelien Moorkens & Arnold G Vulto & Isabelle Huys & Pieter Dylst & Brian Godman & Simon Keuerleber & Barbara Claus & Maria Dimitrova & Guenka Petrova & Ljiljana Sović-Brkičić & Juraj Slabý & Robin Šeb, 2017. "Policies for biosimilar uptake in Europe: An overview," PLOS ONE, Public Library of Science, vol. 12(12), pages 1-17, December.
    5. Matias D. Cattaneo & Nicolas Idrobo & Rocio Titiunik, 2019. "A Practical Introduction to Regression Discontinuity Designs: Foundations," Papers 1911.09511, arXiv.org.
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    More about this item

    Keywords

    Biosimilar; Competition; Pricing; Evergreening;
    All these keywords.

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies

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