OBJECTIVES: A number of biologic drugs, representing 12% of Canadian pharmaceutical sales in 2015, recently began to face, or soon will face, competition from lower-cost biosimilars. This study assesses the potential cost savings based on various assumptions of market uptake and pricing. METHODS: The drugs considered in the study are Avastin, Enbrel, Eprex, Gonal-F, Herceptin, Humira, Lantus, Neupogen, Remicade, Rituxan, Tysabri, and Xolair. Data from the IMS AG MIDAS™ Database, was used to forecast the Canadian utilization for each drug for three years following the expected biosimilar entry. A number of sensitivity analyses were conducted to evaluate the cost implications of different scenarios of biosimilar pricing and uptake based on Canadian and international observations. The analysis is conducted based on a number of OECD countries . The results are reported for the national market, as well as for public and private drug plans. RESULTS: At a drug level, the savings from biosimilar entry vary depending on the size of the market as well as assumptions of price level and potential market penetration, both of which depend on the policies governing the reimbursement of biosimilars. The findings suggest that the greatest savings could be realized by modeling similar market conditions to those prevailing in Norway and Finland. CONCLUSIONS:  As biosimilars and originator products are not interchangeable, the market penetration and pricing of biosimilars depends on regulations and reimbursement policies. Understanding the potential savings under different scenarios of uptake and pricing provides valuable insight into the cost impact of various policy levers.