OBJECTIVES: Biologics such as etanercept are considered very effective but costly treatment options. The biosimilars’ introduction as a treatment option is thought to be an opportunity to achieve cost savings within the healthcare environment. The study objective was to assess the possible budget impact of introducing an etanercept biosimilar, SB4, within the Republic of Ireland for approved adult etanercept indications.

METHODS: There are two potential savings generated by: a mandatory cut of 20% of the originator price after its biosimilar entry and the biosimilar adoption. Annual sales (€) of the etanercept reference product in the year prior to biosimilar entry were used assuming these to remain constant over 3-year horizon.

A budget-impact model was used to estimate the cost saving potential of introducing SB4 vs the reference product over a three-year time horizon from the regional payer’s perspective.

Three scenarios with different SB4 adoption rates were developed: slow (10%, 20%, 30% at year 1, 2, 3 respectively), moderate (15%, 30%, 45%) and rapid (20%, 40%, 60%). Prices were obtained from published sources.

RESULTS: The mandatory cut of the originator price resulted in €12m savings per year. Moreover, due to the SB4 uptake, further budget savings can be achieved over the three-year horizon: €2.78m, €4.16m and €5.55m in the slow, moderate and rapid uptake scenario, respectively. The total potential savings are equivalent to additional 1,731 to 2,056 patient-years.

CONCLUSIONS: SB4 introduction represents substantial cost-saving opportunities for the healthcare system in the Republic of Ireland. National/regional policies toward biosimilars influence their adoption thus impacting saving potential. These savings will contribute to healthcare system sustainability in the Republic of Ireland without compromising the quality of care delivered, as these could be used to treat additional patients within the same therapeutic area, fund novel therapies for other disease areas and/or potentially fund other hospital or medical department needs.