Bay State News

Chris Crawford, founder and CEO of RxSaveCard, said that specialty drug prices are decreasing as generics and biosimilars enter the market, offering significant savings for plan sponsors. This statement was made on LinkedIn on March 25.

According to Crawford's LinkedIn post directed at plan sponsors, there is a need for close monitoring of specialty drugs transitioning to generics, especially when pharmacy benefit managers (PBMs) require the use of in-house specialty pharmacies. He highlighted the new availability of generic Sprycel (Dasatinib) through Mark Cuban Cost Plus Drug Company as an example of potential savings when employers integrate RxSaveCard.

"As patents expire for specialty drugs, prices should come down when generics and biosimilars become available. Plan Sponsors, these are drugs to watch - especially if your PBM mandates the use of their own specialty pharmacy," said Crawford on LinkedIn.

Crawford’s comments come amid a growing number of specialty drugs facing patent expirations in 2025, which will open the market to generics and biosimilars. Employers and plan sponsors are increasingly seeking alternatives to traditional PBM-driven cost structures.

According to Pharma Manufacturing, a significant number of high-profile drug patents are set to expire in 2025, opening the market to generic alternatives. This includes medications across various therapeutic areas, representing billions in sales and years of therapeutic innovation. The introduction of generics is anticipated to increase competition and reduce costs for consumers.

The U.S. Food and Drug Administration (FDA) reports that generic drugs cost, on average, 80% to 85% less than their brand-name counterparts. This substantial price reduction is due to generics being chemically identical to brand-name drugs but without the associated development and marketing expenses. Consequently, the increased availability of generics leads to significant savings for both consumers and the healthcare system.

According to Crawford, "As an example, the generic for Sprycel (Dasatinib) is now available through Mark Cuban Cost Plus Drug Company, PBC and we typically see savings of $6,000+ per prescription on this cancer medication when employers add RxSaveCard compared to what PBMs charge."

The FDA maintains a list of approved new drug applications (NDAs) for products no longer protected by patents or exclusivities yet lacking approved generic counterparts. This initiative aims to encourage the development of generic versions for these off-patent drugs, thereby enhancing market competition and potentially lowering drug prices. The list is updated biannually to reflect current opportunities for generic development.

Chris Crawford has over two decades of experience in healthcare cost-containment and pharmacy benefits innovation. RxSaveCard is a platform dedicated to providing prescription drug savings through transparent pricing and employer-integrated solutions. Crawford's leadership focuses on reducing prescription costs for consumers and plan sponsors by leveraging market opportunities such as introducing generic medications.