Generics vs Brand Biologics: Real Cost Differences in 2026

When you’re prescribed a biologic drug-something like Humira for rheumatoid arthritis or Enbrel for psoriasis-you might be shocked by the price tag. These aren’t your everyday pills. They’re complex, lab-grown medicines made from living cells, and they cost thousands per month. But there’s a cheaper option: biosimilars. They’re not generics in the traditional sense, but they’re close. And right now, they’re saving patients and the system billions.

What’s the real price difference?

In early 2025, the average 30-day prescription for a brand-name biologic cost $2,104. The biosimilar version? $919. That’s more than half off. For a patient needing monthly injections for years, that’s tens of thousands saved. Some biosimilars, like those for Humira, launched at discounts of 80% after patents expired. One version, Hyrimoz by Sandoz, now holds 14% of the U.S. market for that drug alone.

This isn’t a one-time discount. Once a biosimilar enters the market, the original brand often drops its price too-by an average of 25%. So even if you don’t switch, you still benefit. The result? In 2024 alone, biosimilars saved the U.S. healthcare system $20 billion. Since 2015, total savings have hit $56 billion.

Why aren’t biosimilars everywhere yet?

You’d think with savings like this, everyone would switch. But here’s the catch: the system isn’t built for it.

Brand drug companies have spent years building what experts call “patent thickets.” They file dozens of minor patents on small changes-like packaging, delivery devices, or dosing schedules-to delay biosimilar entry. Even after the main patent expires, legal battles can push biosimilars back by years.

Then there’s the rebate system. Pharmacy Benefit Managers (PBMs), who negotiate drug prices for insurers, often get big kickbacks from brand-name manufacturers. These rebates are tied to how much of the drug gets prescribed. So even if a biosimilar is cheaper, the PBM might still push the more expensive brand because it pays them more. It’s not about what’s best for the patient-it’s about who pays the PBM.

Doctors, too, are often unaware of biosimilars or pressured by reps to stick with the brand. Many patients don’t even know they have a cheaper option unless their pharmacist or doctor tells them.

Biosimilars aren’t generics-but they’re just as safe

Let’s clear up a common confusion. A regular generic pill, like ibuprofen, is chemically identical to the brand. A biosimilar? It’s not identical. Biologics are made from living cells, so even tiny changes in how they’re grown can alter the final product. That’s why biosimilars are called “highly similar,” not “identical.”

But here’s the key: they’re not less effective. The FDA requires biosimilars to prove they work the same way, with the same safety profile, as the original. No clinical trial shows one is better or worse. The FDA approved 76 biosimilars as of October 2025. Every single one met strict standards.

Patients who switch from a brand biologic to a biosimilar don’t report more side effects. Studies show no difference in outcomes for conditions like Crohn’s disease, psoriasis, or cancer treatment. The only difference? The price.

How much can you save personally?

If you’re paying out of pocket, the savings hit hard. For Humira, the brand costs about $80,000 per year. A biosimilar? Around $16,000. That’s $64,000 saved annually.

Even with insurance, your copay might still be $500 a month for the brand. With a biosimilar, it could drop to $385. That’s $135 a month, or over $1,600 a year back in your pocket.

Some plans have “step therapy” rules-meaning you have to try the cheaper option first. But many don’t. If your prescription is for a biologic, ask your doctor or pharmacist: “Is there a biosimilar available?” If they say no, ask why. It might be a rebate issue, not a medical one.

What’s holding biosimilars back?

Despite the savings, biosimilars still make up less than 20% of the biologic market. Compare that to traditional generics, which cover 90% of prescriptions and cost 79% less than brand names. Why the gap?

First, development is expensive. Creating one biosimilar costs $100-250 million-far more than a regular generic. That means fewer companies can afford to enter the market.

Second, regulatory delays. Even though the FDA is trying to speed things up with new guidance, the process is still slower than it should be. The agency now says it wants to reduce unnecessary clinical trials, which could cut development time by years.

Third, policy uncertainty. The Inflation Reduction Act introduced government price controls for some drugs, but it’s unclear how that affects biosimilars. Companies are hesitant to invest if they don’t know what prices they’ll be allowed to charge later.

The future: More savings on the horizon

The good news? Things are changing.

The Biden administration launched a Biosimilars Action Plan in late 2025 to tackle patent thickets and rebate walls. The FDA is streamlining approval. Health plans are starting to shift incentives-some now cover biosimilars at zero cost to patients.

Analysts predict biosimilar market share will jump from 15-20% today to 35-40% by 2030. That could mean over $125 billion in annual savings.

For patients, this isn’t just about money. It’s about access. Right now, many people skip doses or skip treatment entirely because they can’t afford the brand. Biosimilars could change that. A patient with an autoimmune disease might go from choosing between rent and medication to living a full, active life.

What you can do today

If you or someone you know is on a biologic drug:

• Ask your doctor: “Is there a biosimilar version?”
• Ask your pharmacist: “Can I switch?”
• Call your insurance: “Do you cover biosimilars? What’s my copay?”
• Don’t assume your prescription is the only option-ask for alternatives.

You don’t need to wait for policy changes. You can start saving today.

Why this matters beyond your wallet

Biologics are the fastest-growing part of drug spending. They make up only 5% of prescriptions but 51% of total drug costs. If we don’t fix this, premiums, taxes, and out-of-pocket costs will keep rising for everyone.

Biosimilars are the most powerful tool we have to bring those costs down. They’re not perfect. They’re not magic. But they’re real. And they’re working.

The question isn’t whether biosimilars are safe or effective. It’s whether we’re willing to use them.