3 Overcoming barriers: Reducing the price of drugs requires confronting industry challenges

	Increasing adoption of biosimilars requires: Redesigned reimbursement incentives for payers and providers. The 340B program should be adjusted to avoid incentivizing providers or PBMs to purchase the higher-priced original biologic products. Rebate-based pricing should be reformed to prevent the prioritization of higher-priced biologics in formularies. Lowered patent protection for biologics, reducing the exclusivity period from 12 to seven years.
	Simplifying the value chain requires: Unlocking trapped cost, especially in the current PBM model. Innovators such as direct‑to-consumer cost-plus models have already identified some opportunity areas. Regulatory action can support widespread increased competition and clarity on PBM fee structures. Employers have a role to play in holding PBMs and payers accountable for value‑add activities instead of defaulting to the status-quo.

Increasing adoption of biosimilars requires:
Redesigned reimbursement incentives for payers and providers. The 340B program should be adjusted to avoid incentivizing providers or PBMs to purchase the higher-priced original biologic products. Rebate-based pricing should be reformed to prevent the prioritization of higher-priced biologics in formularies.
Lowered patent protection for biologics, reducing the exclusivity period from 12 to seven years.

Simplifying the value chain requires:
Unlocking trapped cost, especially in the current PBM model. Innovators such as direct‑to-consumer cost-plus models have already identified some opportunity areas. Regulatory action can support widespread increased competition and clarity on PBM fee structures. Employers have a role to play in holding PBMs and payers accountable for value‑add activities instead of defaulting to the status-quo.

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Increasing adoption of biosimilars requires: Redesigned reimbursement incentives for payers and providers. The 340B program should be adjusted to avoid incentivizing providers or PBMs to purchase the higher-priced original biologic products. Rebate-based pricing should be reformed to prevent the prioritization of higher-priced biologics in formularies. Lowered patent protection for biologics, reducing the exclusivity period from 12 to seven years.	Simplifying the value chain requires: Unlocking trapped cost, especially in the current PBM model. Innovators such as direct‑to-consumer cost-plus models have already identified some opportunity areas. Regulatory action can support widespread increased competition and clarity on PBM fee structures. Employers have a role to play in holding PBMs and payers accountable for value‑add activities instead of defaulting to the status-quo.