Biosimilars are biological products that are highly similar to and have no clinically meaningful differences from an existing FDA-approved biological product, known as the reference product. An interchangeable biosimilar is expected to produce the same clinical result as the reference product. Biosimilars work in the same way as the reference product through the same mechanism of action. Unlike generics, biosimilars are not necessarily identical due to differences in living organisms used to produce them. As biosimilars gain approval, they have the potential to increase treatment options for patients and lower healthcare costs.