Dennis M. Gross, MS, PhD CEO & Treasurer, Professor of Pharmacology Pennsylvania Drug Discovery Institute Faculty, Jefferson College of Biomedical Sciences, Sidney Kimmel College of Medicine, Th. Jefferson University Medi ine Th Jefferson Uni ersit © Dr. Dennis M. Gross 2016 1 “80% of success is showing‐up” Woody Allen 2 1 Introduction D fi iti L l l Definitions: Large molecules Differences: Drugs vs. Biologics Vaccines Case Studies from Production of Vaccines p Development Non‐clinical Clinical Future of Vaccines and Biologics 3 Vaccines Attenuated: M‐M‐R, Rotavirus, Varicella, Zostavax Killed or Inactivated: IPV, HepA Toxoids: Diphtheria; Tetanus; Sub‐unit: HepB; acellular Pertussis; VLP Vector‐based vaccine: Canary pox, Adenovirus, DNA: In research phase Peptide vaccine: Epitope vaccine, peptide immunogens (HER‐2/neu); Antibodies: MAbs Cytokines: Lymphokines (IFN, IL); monokines (IL,TNF); Interleukins (IL) Growth factors: Erythropoietin, VEGF Hormones: Steroids (estrogens); Polypeptides (Insulin, endorphins); etc. Gene Therapy Stem Cells: Embryonic, Adult 4 2 Vaccine: A preparation of microorganisms (e.g., bacterium, virus), or their antigenic components administered for the prevention, amelioration or treatment of an infectious disease Biologic preparation that elicits immune response with memory Generates humoral (antibody) and/or cellular (cytotoxic or killer T‐cell) response to eliminate pathogen or pathogen infected cell The immune system is then primed to mount a secondary immune response with strong and immediate protection upon future exposure to ih di di i f the pathogen 5 WHY?? 6 3 7 8 4 9 Drugs Synthetic, organic compounds Defined structure, physical & chemical characteristics chemical characteristics Chemical synthesis Small molecule (±1,000) Stable Homogeneous Biotransformed (metabolized) Linear dose‐response Activity not species specific Acetaminophen Mw = 151 10 5 Drugs Synthetic, organic compounds Defined structure, physical & chemical characteristics chemical characteristics Chemical synthesis Small molecule (±1,000) Stable Homogeneous Biotransformed (metabolized) Linear dose‐response Activity not species specific Acetaminophen Mw = 151 Biologics Protein‐, carbohydrate‐ or nucleic acid ‐based product Extracted from living organism Complex physicochemical structure Less well‐characterized Macromolecule (5,000 ‐>1,000,000) Tertiary structure Location, extent and type of glycosylation Heat‐ & shear‐ sensitive Non‐linear dose‐response Monoclonal antibody, Mw = ~150,000 11 12 6 Smallpox Pertussis Diphtheria Polio Vaccines Hepatitis B vaccine 13 1981 Hepatitis B Ref. Hilleman, Nature Medicine, 4, 504, 1998 Maurice Hilleman 1919 - 2005 Albert Sabin 1906 - 1993 Jonas Salk 1914 - 1995 1923 Diphtheria Louis Pasteur 1822 - 1895 Edward Jenner 1749 - 1823 1796 Smallpox 1780 1800 1926 Pertussis 1927 Tetanus 1840 1860 1880 1962 Oral Polio 1986 Hepatitis B p (Recombinant) 1963, 1968 Measles 1989 Hib Conjugate 1965 Japanese encephalitis 1995 Varicella 1967 Mumps 1996 Hepatitis A 1969 Rubella 1996 Hib-Hep B 1971, 1978 MMR 1996 DTacP 1974 Meningococcal 1998 Lyme 1977 1935 1956 Pneumococcal Yellow Fever Adenovirus 14-valent 1885 Rabies 1820 1955 Polio 1900 1920 1940 1983 Pneumococcal 23-valent 1960 1999 Pneumococcal conjugate 1980 2000 7 Smallpox Pertussis Diphtheria Polio Vaccines Hepatitis B vaccine 15 Smallpox Pertussis Diphtheria Polio Vaccines Hepatitis B vaccine Protection from Cholera Picture courtesy of Wellcome Library, London 16 8 17th century Chinese practice Vaccinating with scabs from smallpox patients smallpox patients 1796 ‐ Edward Jenner Vaccine made from pus of cowpox patients and milk maids Coined the term “vaccination” First recognized use of a vaccine No purification! Whooping cough caused by B. pertussis, a small gram negative bacteria Vaccine ‐ suspension of killed whole cells of bacteria Whole cell pertussis vaccine first licensed in the US in 1914 Later combined with diphtheria and tetanus toxoids (DTP) in 1942 tetan s to oids (DTP) in 1942 Lack of purity caused some side effects Led to the development of acellular pertussis (subunit vaccine) Ref. Aunins, Lee and Volkin, in The Biomedical Engineering Handbook, CRC Press, Boca Raton, 1995 9 Respiratory infection caused by C. diphtheriae, a gram‐positive bacteria Diphtheria toxin, a polypeptide of 62 kDa MW, is formaldehyde treated to form toxoid First protein purified for active immunization Purity < 60% P it 60% protein impurities can crosslink with toxoid Ref. Rappuoli and Pizza in Vaccines, Eds. Perlman, P. and Wigzell, H., Springer, Heidelberg, 1999 20 10 Enders successfully cultivated virus in tissue culture (1949) Inactivated virus developed by Salk (1955) Oral polio (Live virus) developed by Sabin (1963) (1963) Oral polio (Live virus) developed by Sabin Less expensive and simple to use IPV Ref. Salk, JAMA, 151, 1081, 1953 OPV Ref. Aunins, in Encyclopedia of Cell Tech., Ed. Spier, Wiley & Sons, NY, 2000 21 RECOMBIVAX HB® was the first US licensed recombinant ®, a plasma‐derived vaccine vaccine (1986) replacing HEPTAVAX ( ) p g p (1981) which was removed from the market in 1986. HBsAg is expressed in yeast; intracellular product ~100 copies of 24 kD polypeptide assembles with host‐derived lipids into 22‐nm spherical particles Particle held together by hydrophobic interactions in lysate; disulfide bonds form during purification process 22 11 Yeast Fermentation MF Homogenization MF UF XAD Treatment Aerosil Adsorption Butyl Agarose Chromatography KSCN treatment Sterile filtration Ref. Sitrin et al., in Hepatitis B Vaccines in Clinical Practice, Ed. Ellis, R. W., Marcel Dekker, NY, 1993 Alum treatment 23 How do you grow all those cells to infect? o do you g o a t ose ce s to ect? 24 12 Small‐scale (<10 L) ‐ Flasks (T‐flasks, Erlenmeyer, Spinners) ‐ Roller Bottles Mid‐scale (10 ‐ 250 L) ‐ Roller Bottles (automated handling) ‐ Nunc Cell Factories and Costar Cell cubes ‐ “Small” continuous stirred reactors ‐ Wave Bioreactors 25 Large scale (> 250 L) engineered systems. Images: Copyright Sanofi Pasteur , Amgen, and New York Times 26 13 27 Source: Xcellerex, Sartorius 28 14 ProtA-Equi il . ProtA-Wash S-001 Inoculum Prep S-003 S-107 ProtA-El ut. S-108 Primary Recovery Protein-A ProtA-Reg. 15.15 L/batch 3.64 L/batch S-034 S-031 S-002 P-1 / T FR-101 Roller Bottle (2.2 L) T -Flask (225 m L) S-037 3836.66 L/batch S-032 P-2 / RBR-101 P-14 / V-101 S-004 P-16 / DE-108 P-15 / DS-101 Surge T ank S-036 P-17 / V-103 Polishing Fi tl er Centrifugation P-18 / C-101 P-19 / DE-109 PBA Chromatography Centri fugati on Pool T ank Pol ishi ng Fitler ProtA-Waste S-008 S-033 S-009 S-006 59.11 L/batch S-038 46590.92 L/batch S-035 S-039 235.91 L/batch S-007 P-3 / BBS-101 P-4 / BBS-102 Bag Bioreactor (20 L) S-05 S-043 S-109 Bag Bi oreactor (100 L) Chemical Virus Inactivation S-041 S-010 S-110 S-045 S-011 S-102 S-103 S-101 Vent-3 S-044 P-20 / V-107 P-21 / DF-101 P-22 / V-111 Storage Di afil tration Virus Inactivation S-046 P-23 / DE-110 Polishing FIl ter S-015 S-012 S-042 767.42 L/batch 945.69 L/batch P-6 / M P-101 S-013 P-7 / DE-101 M edi a Prep S-048 P-5 / SBR1 Steri le Fi ltrati on 767.59 L/batch First Seed Bioreactor (1000 L) S-047 S-017 S-016 S-014 S-030 HIC-Equil IEX-Equil Amm. Sulfate S-018 HIC-Wash IEX-Wash Vent-4 HIC Chrom IEX Chrom IEX-WFI HIC-El S-021 IEX-El S-019 IEX-Stri p P-9 / MP-102 3798.91 L/batch S-020 1142.85 L/batch S-049 HIC-Reg P-27 / DE-106 P-25 / V-109 P-8 / SBR2 Steril e Fil tration S-051 IEX-Ri nse P 10 / DE P-10 DE-102 102 Media Prep P-24 / C-102 Second Seed Bi oreactor (4000 L) S-050 1345.25 L/batch IEX Pool Tank Dead-End Fil tration P-26 / C-103 HIC Chrom atography IEX Chromatography S-052 S-022 HIC-Waste S-023 IEX-Waste S-025 S-172 9743.99 L/batch 12594.01 L/batch Bioreaction Vent-5 S-024 Viral Exclusion Final Filtration S-026 S-025b P-12 / MP-103 P-13 / DE-103 M edi a Prep Sterile Filtration S-028 S-106 S-058 S-057 S-054 S-027 15185.02 L/batch S-028b P-11 / PBR1 Production Bioreactor (15000 L) S-024b P-34 / MP-104 Media Prep P-28 / V-108 HIC Pool T ank 761.97 L/batch S-056 S-053 S-062 P-30 / V-110 P-29 / DE-105 Storage P-35 / DE-104 Sterile Filtration S-105 S-104 Viral Excl usion Filtration S-026b S-059 P-31 / DF-102 761.97 L/batch Diafiltration P-32 / DE-107 P-33 / DCS-101 Final Pol ishi ng Filtration Freeze in 50L Plastic Bags Final Product S-061 S-029 S-055 S-060 S-027b 29 CAPD = Computer Aided p Process Design Source: Intelligen Suite 30 15 31 32 16 33 34 17 35 36 18 37 38 19 39 40 20 41 42 21 Fever and jaundice of 2‐3 weeks duration Fever and jaundice of 2 3 weeks duration Transmitted by fecal oral route In US, spread through day care centers, residential institutions, restaurant food handlers Endemic in developing countries Vaccine development undertaken to minimize spread of disease 43 Ref. Aboud et al. (Merck & Co. Inc.), PCT WO 94/03589, 1994 44 22 Cell Growth and Viability viable v cell density (x 10 c cells/ml) 100 6 80 40 viability 60 20 infection 0 time (hours) 45 Cell Culture Lysate Nuclease treatment Capture chromatography PEG precipitation Solvent extraction 1 2 3 4 5 6 7 Ion exchange chromatography 8 9 Size exclusion chromatography Formaldehyde Alum adsorption 1. LOW MW STANDARDS 2. LYSATE 3. LYSATE + BENZONASE 4. CAPTURE PRODUCT 5. PEG PELLET 6. SOLVENT EXTRACT 7. ION EXCHANGE PRODUCT 8. SIZE EXCLUSION PRODUCT 9. SIZE EXCLUSION PRODUCT 12% GEL WITH 200NG HAV ANTIGEN PER LANE 46 23 Resuspended PEG Pellet Sample Ion-Exchange Chromatography Product 660kDA Protein Hepatitis A Hepatitis A Aggregate 660kDA Protein Aggregate A 214nm 0 A 214nm 10 20 30 40 0 Solvent Extracted Aqueous Phase Sample 10 20 30 40 Size-Exclusion Chromatography Product Hepatitis A Hepatitis A 660kDA Protein Aggregate A 214nm 0 A 214nm 10 20 Minutes 30 40 0 10 20 Minutes 30 40 Hardware: Rainin HPLC system, TosoHaas TSK PW4000xl, 7.8 x 300 mm column Mobile phase: PBS, 0.32 ml/min, 50 l injection. Detection UV 214 nm 47 48 24 49 50 25 Pre‐clinical Drugs Toxicology in rodent and something else Hepatic microsome for CYP enzyme metabolism Safety pharmacology (CNS, cardiovascular, respiratory studies ICH S7) Carcinogenicity (Ames Test) Clinical Drug‐drug interactions Food‐drug interactions for oral administration Effect on QT/QTc & arrhythmic potential Pre‐Clinical Biologics T i l i l t i l Toxicology in relevant animal species Very difficult learning curve at the moment Don’t always get NOAEL (No Observed Adverse Event Level) Clinical PK and bioavailability but not metabolism Concomitant use (vaccines) Off‐target incorporation of material (DNA Vaccines) 51 Inherent toxicity of the vaccine Inherent toxicity of the vaccine Toxicity of impurities/contaminants Toxicity due to interaction of components Toxicity linked to the immune response T i it li k d t th i induced Unknown unknowns (Black Swans) 52 26 “Relevant” animal species An animal species susceptible to respond to the test article activity, e.g., development of an immune response after vaccination Ideally, species should be sensitive to the pathogenic organism or toxin One relevant animal species in general is sufficient Exceptions on a case‐by‐case Non‐human primates not generally necessary Group size dependent on the animal model 53 Route of administration (ROA) and dose should correspond to clinically intended ROA and dose(s), e.g., oral, SC, IM, Nasal Total number of doses equal to or exceed number of clinically administered doses [“N plus 1”] Episodic dosing, e.g., weeks between doses 54 27 55 IND/ CTA NDA/ WMA/ BLA Phase I – First‐into‐Human 20‐100 normal healthy volunteers Determine safety and tolerability Determine safety and tolerability Phase IIa/IIb – Therapeutic Exploration 100‐300 patients Evaluate efficacy Determine dose range and adverse events (AEs) Phase III – Therapeutic Confirmation 1,000 to 15,000 patients Verify efficacy, monitor AEs and effect in usual therapy and special populations Phase IV – Post‐Approval Postmarketing surveillance Monitor long term risks and benefits, outcomes and pharmacoeconomics Phase V Postmarketing studies (Potentially thousands of patients) New indications: “Megatrials” 56 28 Sources: Clemens et al. JAMA 1996;275:390‐7 Levine MM. British Medical Bulletin 2002;62:1‐13 Promising vaccine candidate IND Phase I: Well‐tolerated and immunogenic in healthy adults? No Yes Phase II: Well‐tolerated and immunogenic in the target population? Yes No Phase III: Well‐tolerated and efficacious in the target population? 57 Phase III: Well‐tolerated and efficacious in the target population? No Subset assessed for immunogenicity y y p Antibody level may link with protection = CORRELATE OF PROTECTION Yes Phase IV: Assess effectiveness Sources: VacciNews 2002;1(6):1‐4 Clemens et al. JAMA 1996;275:390‐7 Levine MM. British Medical Bulletin 2002;62:1‐13 58 29 trial provides a more direct An Efficacy trial provides a more direct measurement of protection Efficacy‐ the protective effect of a vaccine against the target disease Protective Efficacy = incidence of disease in vaccinees 1- incidence of disease in nonvaccinees X 100% Sources: VacciNews 2002;1(6):1-4 Clemens et al. JAMA 1996;275:390-7 60 30 IND/ CTA NDA/ WMA/ BLA Phase I – First‐into‐Human 20‐100 normal healthy volunteers Determine safety and tolerability Determine safety and tolerability Phase IIa/IIb – Therapeutic Exploration 100‐300 patients Evaluate efficacy Determine dose range and adverse events (AEs) Phase III – Therapeutic Confirmation 1,000 to 15,000 patients Verify efficacy, monitor AEs and effect in usual therapy and special populations Phase IV – Post‐Approval Postmarketing surveillance Monitor long term risks and benefits, outcomes and pharmacoeconomics Phase V Postmarketing studies (Potentially thousands of patients) New indications: “Megatrials” 61 DRUG INDICATION PHASE I PHASE II PHASE III TOTAL TRIALS/ SUBJECTS TRIALS/ SUBJECTS TRIALS/ SUBJECTS TRIALS/ SUBJECTS 3/48 8/532 1/469 12/1069 6 ‐ 7 8/163 23/503 23/1381 34/2048 4 ‐ 5 18/446 3/3275 3/1588 28/5309 5 42/905 13/498 13/4679 68/6082 4 ‐ 5 31/940 2/1855 13/5733 46/8528 FIH‐NDA FILE (YEARS) HERCEPTIN® BREAST CA ENBREL® RHEUM. ARTHRITIS RELENZA® INFLUENZA VIAGRA® ERECT. DYSFUNCT. VIOXX® OA & PAIN •Grudzinskas C. Design of clinical development programs in Atkinson AJ Jr, et al. Principles of Clinical Pharmacology 62 31 IND/ CTA NDA/ WMA/ BLA Phase I – First‐into‐Human 20‐100 normal healthy volunteers Determine safety and tolerability Determine safety and tolerability Phase IIa/IIb – Therapeutic Exploration 100‐300 patients Evaluate efficacy Determine dose range and adverse events (AEs) Phase III – Therapeutic Confirmation Possibly 60‐70,000 for a vaccine Verify efficacy, monitor AEs and effect in usual therapy and special populations Phase IV – Post‐Approval Postmarketing surveillance Monitor long term risks and benefits, outcomes and pharmacoeconomics Phase V Postmarketing studies (Potentially thousands of patients) New indications: “Megatrials” 63 : Rotavirus vaccine‐ 70,000 patients in 70 000 patients in ROTATEQ® : Rotavirus vaccine the pivotal trials worldwide ZOSTAVAX® : Shingles vaccine‐ 68,000 patients in the pivotal trials worldwide. 64 32 65 66 33 Biosimilars are to biologics what generics are to chemical Biosimilars are to biologics what generics are to chemical drugs Reference product g g Biological drug PATENT EXPIRY E Chemical drug Follow-on version Generic Biosimilars ((EU)) Follow-on Biologics (FOB, US) Subsequent-entry Biologic (SEB, Canada) Biotechnology Follow-on Product (Japan) Similar Biotherapeutic Product (SBP, WHO) Follow‐on versions are generally expected to deliver price discounts. 67 | DRA NBx Training - Biosimilars | Ulrike Jägle | 28 Oct 2009 | Business Use Only Reduced cost of patient care – Political agenda Business opportunity pp y Worldwide revenues for biotech drugs in 2014= $73.3 billion from sales on the top 10 approved products Average gross margins > 75% Expanding patient care 67 New products – New products 370 biotech drugs in clinical trials 370 biotech drugs in clinical trials New markets – global expansion Political Pressure ! 68 34 The Patent Cliff P A T E 2012 2013 2014 2015 2016 2017 2018 Enbrel Epogen/ Procrit Remicade Neulasta Aranesp Avastin Caduet Neupogen NovoLog Rituxan Humira Pegasys CabillyII Avonex Lantus Humalog Herceptin Rebif Synagis Byetta PegIntron Xolair Actemra 35 Humira (AbbVie) $12.5 Remicade (J&J) Remicade (J&J) $9 2 $9.2 Rituxn (Biogen) $8.7 Enbel (Amgen) $8.5 Lantus (Sanofi) $7.3 Avastin (Roche) $7.0 Herceptin (Roche) $6.8 Neulasta (Amgen) l (A ) $5.9 $ Prevnar (Pfizer) $4.5 Avonex (Biogen) $3.0 $0 Source: Statista $2 $4 $6 $8 $10 $12 $14 Revenue in Billions (US$) 36 Source: EvaluatePharma 74 37 To date, Europe has approved 22 biosimilars with no significant safety issues in three classes: Human growth hormones Erythropoietins Recombinant Insulin The US FDA received on 24 July 2014 the BLA via the 351(k) pathway for a biosimilar for Amgen’s Neupogen (filgrastim) from Sandoz which following court challenges was launched on 3 September 2015. Still being challenged Korea approved (8 Sept. 2015) a biosimilar for Amgen’s Enbrel that was developed by Merck/Samsung. Launched in December 2015. 2015 The US FDA accepted on 5 October 2015 the BLA under the 351(k) pathway for a biosimilar to Amgen’s Enbrel (etanercept). EU approved 18 January 2016 The biosimilar market in the US will not take shape until the 2017+ timeframe. One drug does not make a market. 75 Biosimilarity – What is it? I t h bilit (G i b tit ti ?) Interchangeability (Generic substitution?) Patient Safety and Pharmacovigilance Naming Convention: Draft suggestion‐> Zarxio (filgrastim‐sndz) 76 38 Biosimilarity – What is it? I t h bilit (G i b tit ti ?) Interchangeability (Generic substitution?) Patient Safety and Pharmacovigilance Naming Convention: Draft suggestion‐> Zarxio (filgrastim‐sndz) 77 “li”: Immune Target Monoclonal Ab “xi”: Chimeric Remicade® by Johnson & Johnson Chimeric mAb Anti TNF‐α Approved by the FDA in 1998 Administered intravenously Designated for use in patients who did not respond to methotrexate h Proven to slow the clinical and radiological progression of rheumatoid arthritis 78 39 Biosimilarity – What is it? I t h bilit (G i b tit ti ?) Interchangeability (Generic substitution?) Patient Safety and Pharmacovigilance Naming Convention: Draft suggestion‐> Zarxio (filgrastim‐sndz) Use of Supportive Data and Information Whose data? What is the reference product (RP) with multiple entries 79 DRUG Branded Product Generic #2 Generic #2 Generic #1 Branded Product ? BIOSIMILAR Biosimilar #1 Biosimilar #2 ? 80 40 Biosimilarity – What is it? Interchangeability (Generic substitution?) Interchangeability (Generic substitution?) Patient Safety and Pharmacovigilance Naming Convention: Draft suggestion‐> Zarxio (filgrastim‐sndz) Use of Supportive Data and Information Whose data? What is the reference product (RP) with multiple entries Guidances EMA [2005] FDA [2012 draft document] 81 Year of Publication Country with Specific Guidelines 2005 EU 2007 Australia 2008 Malaysia, Turkey, Taiwan 2009 Japan, Korea, Singapore, WHO 2010 Brazil, Canada, Saudi Arabia, South Africa 2011 Argentina, Cuba, India, Iran, Mexico, Peru 2012 Colombia (draft), Egypt (draft), Jordan (draft), Thailand (draft) US (draft) 2014 EU (revised guidelines) 2015 China Source: Boren, J., Contract Pharma 17(5): 58 (2015) 82 41 83 Requirements for extensive Analytical Physico‐chemical Biological characterization The FDA will consider multiple factors in making study determinations: Product complexity Formulation Product stability Structure‐function relationships Manufacturing process Clinical experience with the reference product 42 The 351(k) Biosimilar Pathway C h i d t k th t i l d Comprehensive data package that includes: Analytical studies Functional studies Preclinical evaluation Clinical evaluation including pivotal studies PK Studies Studies in healthy volunteers Studies in patients with target disease(s). 86 43 Erythropoietin (MW = 34,000) 87 Erythropoietin 88 44 KEY CONCERNS: 2013 2015 I th i il for f Remicade R i d interchangeable i t h bl Is the bi biosimilar YES 6% YES: YES 44 4% YES: 44.4% Little or no confidence in biosimilars YES: 63% YES: 19.5% Require distinctive labeling YES: 66% Disagree with automatic substitution YES: 35% YES: 89.8% Driver: Cost is main advantage 92.40% More Pharmacovigilance 30.50% Well designed RCT as concern 27.00% Further assessment of risk profile 32.20% Source: Abstract from S. Danese, G. Fiorino, P. Michetti, European Crohn’s and Collitis Organisation conference – 2016 89 90 45 91 • • • • The term refers to a rProtein that is in the same class as an existing biopharmaceutical but is not identical: It is i d th i i l improved over the original. Biobetters are not entirely new drugs and they aren’t generic versions of drugs, either. Biobetters are being developed using protein or glyco‐ engineering which it is hoped will reduce the risk of immunogenicity making the drug safer, more effective and requiring a lower dose. d ii l d A biobetter has the same target as the original but its effect on the target will hopefully last for an extended period of time. 92 46 Early vaccines were based on the large and • Early vaccines were based on the large and complex carbohydrate (sugar) based polymers produced by the bacteria. • More recently new glycoconjugate vaccines have been developed which involves 'fusing' the complex carbohydrates ‐‐ the sugar polymer tails ‐‐ onto carrier proteins. • These sugar‐protein complexes improve the effectiveness and longevity of the vaccine. effectiveness and longevity of the vaccine. • However, there are still problems concerning the stability of formulations they are prepared in. 93 POTENTIAL IMPEDIMENTS TO BIOSIMILAR MARKET UPTAKE INCLUDE: Regulatory Burden Name convention Clinical testing the FDA requires biosimilars to repeat Slow patient enrollment in studies Statutory Burden State laws intended to restrict substitution could have the effect of hindering market uptake of biosimilars Market Risks Market Risks It is unclear how insurance companies and government health care programs will handle coverage and reimbursement The perception of biosimilars and the general public will play a substantial role in determining biosimilar utilization. 94 47 POTENTIAL IMPACT ON BIOSIMILAR MARKET • Merck’ss biosimilar for Remicade biosimilar for Remicade has been discounted 45% in Korea has been discounted 45% in Korea Merck • Discounted in Europe by a Finnish firm by 70% and 25‐30% by Napp Pharma and Hospira • Average discounts in all markets for biosimilar Remicade = 45% • In the UK, biosimilar Remicade In the UK, biosimilar Remicade already has a 5% market share already has a 5% market share • Biosimilars for Remicade have already produced a 25% reduction in 2nd Quarter sales for J&J which is significant as total sales in 2014 were $9.2B 95 • • Major advantage is that you are already pursuing a mechanism of action that is known and because they are considered a new drug, they will enjoy 12 years of market protection in the US unlike a biosimilar. However, it is not clear how much payors are willing to pay for biobetters benefits especially with the significant discounts already in the marketplace for biosimilars. 96 48 97 “Predictions are difficult to make, especially about the future” Yogi Berra 98 49 “The only thing we know about the future is that it will be different” W. Edwards Deming 99 dgross@padrugdiscovey.org +1.267.893.6777 50