In a Nutshell: Blog Highlights
- Biosimilars are highly similar versions of biologic drugs, approved by Health Canada for safety, quality, and effectiveness
- They offer significant cost savings while delivering comparable clinical outcomes
- Many high-cost medications used to treat chronic conditions now have biosimilar alternatives
- Understanding biosimilars helps employers and employees make more informed, sustainable benefits decisions
The Deeper Dive
Understanding Biosimilars in Canada
For many Canadians, the cost of prescription medications continues to rise, particularly when it comes to biologic drugs. These medications are often life-changing, but they can also come with a significant financial burden. As a result, biosimilars have emerged as an important solution within both public and private drug plans.
According to Health Canada, biosimilars are biologic drugs that are highly similar to an already authorized biologic (known as the reference drug). While they are not identical, they have no clinically meaningful differences in terms of safety, purity, and effectiveness. Health Canada applies rigorous review standards to ensure biosimilars meet the same high bar as original biologics.
Why Biosimilars Matter More Than Ever
Biologic drugs are often used to treat complex, chronic, and sometimes life-threatening conditions. However, their cost can be staggering. Consequently, they represent one of the fastest-growing drivers of group benefits spending across Canada.
To illustrate this, consider the following commonly prescribed biologic medications:
- Prolia (denosumab)
Used to treat osteoporosis, particularly in post-menopausal women. Without insurance, each injection typically costs between $1,700 and $1,850 or more.
Reference: https://www.drugs.com/price-guide/prolia
- Xolair (omalizumab)
Used to treat severe asthma (including in children aged 6 and older), chronic rhinosinusitis, and nasal polyps. Retail prices can exceed $4,700 per prescription without coverage.
Reference: https://www.drugs.com/price-guide/xolair
- Actemra (tocilizumab)
Used for conditions such as moderate-to-severe rheumatoid arthritis, giant cell arteritis, and systemic sclerosis-associated interstitial lung disease. Monthly costs can range between $2,300 and $4,900.
Reference: https://www.drugs.com/price-guide/actemra
- Stelara (ustekinumab)
Used for autoimmune conditions like plaque psoriasis, psoriatic arthritis, Crohn’s disease, and ulcerative colitis. Costs can range from approximately $12,000 to $15,000+ per injection without insurance.
Reference: https://www.drugs.com/price-guide/stelara
Biosimilars, by contrast, are typically 25% - 50% lower in cost than biologics. 1 Given this, it becomes clear why employers, insurers, and governments are increasingly turning to biosimilars as a way to manage long-term sustainability.
How Biosimilars Help Control Costs
Unlike traditional generic drugs, biosimilars are more complex to develop. However, they still enter the market at a lower cost than the original biologic. As a result, they can reduce drug plan spending while maintaining the same therapeutic outcomes.
In many provinces, including Saskatchewan, biosimilar initiatives are being introduced to encourage or require switching from reference biologics to biosimilars where appropriate. These programs are designed to:
- Improve access to treatment for more patients
- Reduce pressure on public and private drug plans
- Ensure long-term sustainability of healthcare systems
Importantly, these switches are guided by clinical evidence and regulatory oversight, not simply cost considerations.
Are Biosimilars Safe?
A common question among plan members is whether biosimilars are as safe and effective as the original biologic.
Health Canada’s position is clear: biosimilars must demonstrate no clinically meaningful differences from their reference product. This includes rigorous testing for:
- Quality and manufacturing consistency
- Pharmacokinetics (how the drug behaves in the body)
- Clinical effectiveness
- Safety and immunogenicity
In other words, patients can expect the same therapeutic results when using a biosimilar as they would with the original biologic.
For further detail, Health Canada provides additional guidance here.
What This Means for Employers and Plan Members
As biosimilars become more widely adopted, both employers and employees will see changes in how certain medications are covered.
For employers, biosimilars offer an opportunity to better manage rising drug costs without compromising care. This, in turn, helps preserve the overall value of a benefits plan.
For employees, the shift may involve transitioning from a familiar medication to a biosimilar alternative. While this can feel uncertain at first, it is important to remember that these medications are carefully evaluated and approved to deliver the same outcomes.
Additionally, plan sponsors and advisors play a key role in supporting this transition through education, communication, and coordination with healthcare providers.
Looking Ahead
The role of biosimilars in Canada will only continue to grow. As more biologic drugs reach the end of their patent protection, additional biosimilar options will enter the market. This will create even greater opportunities to balance cost, access, and quality of care.
Ultimately, biosimilars are not just a cost-saving measure. Rather, they are a critical part of ensuring that Canadians can continue to access the medications they need, both today and in the future.
To learn more, please contact us.
Matthew Hill, B.A.
Benefits Associate
