Sandoz biosimilar sparks uptake and savings debate

Sandoz has announced the availability of Erelzi, a biosimilar to Pfizer’s biologic Enbrel (etanercept), used to treat autoimmune conditions, including rheumatoid arthritis, juvenile idiopathic arthritis, ankylosing spondylitis, non-radiographic axial spondyloarthritis (nrAxSpA), psoriatic arthritis, and plaque psoriasis.

Natalie Armstrong, Head of Marketing at Sandoz Australia, said “Biosimilar medicines are essential to ensure patients and healthcare providers have affordable choices to high-quality medicines – supporting long-term sustainability of the healthcare system.

“With the availability of government funding for Erelzi (etanercept) we’re proud to be a driving force of change in the expansion of access to a trusted and equivalent treatment option for Australians living with autoimmune conditions.”

The announcement comes amid ongoing debate on the uptake of biosimilars in Australia. A recent Health Industry Hub podcast featuring Professor Stephen Hall, Rheumatologist and Founder of Melbourne Rheumatology Group, and Bilal Somra, Executive Director and ANZ Country Lead at Organon, highlighted systemic and cultural barriers that continue to impede biosimilar adoption. From the complexities of the PBS co-payment to lingering uncertainty among clinicians, pharmacists, and patients, uptake remains below potential.

Despite Brenzys (etanercept) being available since 2017, the Specialist Price Disclosure (SPD) mechanism has never triggered a price cut for etanercept. Sandoz noted that a “healthy competitive market” with multiple biosimilar brands is expected to drive down costs for biological medicines on the PBS.

Musculoskeletal conditions in Australia carry a significant economic burden, projected to exceed AUD$13 billion annually, driven by healthcare costs, lost productivity, and disability. Biosimilar medicines could deliver substantial savings to the healthcare system, enabling expanded or simplified access to treatments and reducing administrative burdens for clinicians.

With the Federal Government’s Mid-Year Economic and Fiscal Outlook (MYEFO) approaching, Sandoz is urging modernisation of biosimilar policies to ensure these medicines are appropriately valued and fully integrated into care pathways.

Yet a lingering question remains: will the financial savings from biosimilars be reinvested into innovative therapies and chronic disease initiatives, or, as history has often shown, quietly disappear into unrelated government budget lines?

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