Question

Why are biologic treatments for rheumatoid arthritis so expensive?

Answer 1

• There is a number of reasons why biologic therapies for rheumatoid arthritis (RA) are more expensive than traditional disease-modifying antirheumatic drugs (DMARDs). Biologics work by targeting specific parts of the body's immune system to combat inflammation that damages joints. Here are some of the major reasons biologics are costly: The cost of making them. Biologic agents are more expensive because the materials needed to create them cost more, and the manufacturing process, which uses live organisms, is more complex.
• The cost of research and development. Developed through technology called “genetic modification,” biologics target specific parts of the inflammatory process involved in RA while sparing others. Drug makers say the cost of researching and developing these drugs makes them much more expensive than chemical drugs.
• Less brand competition. Because many of the biologics work in different ways to reduce inflammation, they face less competition from similar drugs. As a result, pharmacy benefit managers aren't able to negotiate prices for biologics.
• The way they are given. Some of the biologics are infused in a rheumatologist's office or infusion center. By contrast, most traditional DMARDs are taken by mouth at home. The fact that some biologics are infused also affects the way Medicare reimburses for them.
• Lack of generics. When a drug company applies for a patent, it has exclusive rights to make and market the drug during a certain period of time. After that time, other companies can make cheaper generics. All of the current biologics are still under patent protection.