CBO Data On Follow-on Biologics Is More Interesting Than It Sounds.

Implications: The report explains that creating a pathway to allow for follow-on biologics will save billions of dollars over the next 10 years. The report will be used to press for quick passage of the House and Senate versions of the legislation.

Analysis: Because Congress is under pressure to reduce health-care costs for both consumers and the federal government, the CBO reports provides a strong argument in favor of  the legislation currently under consideration in both chambers of Congress. The study gives concrete predictions on how much would be saved if legislation under consideration became law.

 Savings predicted under a framework that would allow follow-on biologics (the biotech equivalent to generics)  are neither as large or immediate as earlier predictions, but are still both symbolically important and fiscally significant.