Generic Drugs Are Cheaper Than Their Branded Counterparts
Generic drugs are medications that are manufactured and distributed without a patent. The generic version can carry a patent on the constitution, but not the active ingredient. The history of generic products began during the 1970s when Al Williams left his job as a label lines manager and began his own business called Keynote Marketing.
He manufactured 20 'no name' generic products under an ordinary white label and sold them to grocery chains in the USA. Shortly after, the major chain stores followed suit and began introducing their own 'white label' products, which were made by various manufacturers.
When it comes to drugs, the main stipulation is that the generic drugs has to have the same active ingredient as the original constitution. The FDA requires that generics must comply with the same bioequivalent range as the branded product regarding pharmacodynamic and pharmacokinetic agents. This essentially means that generics must be identical in strength, dose, method of administration, intended use, efficacy and safety.
Generic medications are made available when the patent acquired by the original company has expired. When they become available to the public, competition in the market place leads to substantially cheaper prices for the generic drugs and the original branded product. In America, it usually takes 20 years for a patent to expire.
Generics save insurance companies and patients a lot of money. As already mentioned, this is due to stiff competition among drug producers. Because there are fewer expenses in making the generic version, companies can pass these savings onto the consumer while still making a healthy profit.
The prices of generic medications are so low that even developing and third-world countries can afford them. For instance, Thailand imported millions of generic tablets of a blood-thinning drug to help prevent heart attacks. The cost was a mere 3 cents (USA) per tablet, which included transportation from India where the medication is manufactured.
Generic companies are allowed to enjoy the benefits of past marketing campaigns done by the company that produced the original product. This includes drug presentations, media advertising, and the handing out of free samples. Many drugs introduced by generic companies have been available for more than a decade and are well known to patients and the medical profession.
Some people are still suspicious about generics. Claims have been made that they are manufactured in sub-standard facilities, and that they are inferior to the branded versions. Neither of these statements is true. The FDA demands exactly the same requirements of all drug manufacturers, irrespective of whether they make branded products or generics.
In fact, many drug manufacturing companies make branded medications and generics. According to FDA estimates, about 50 percent of generics are produced by brand companies. Another misconception is that generics do not work as effectively. Again, this is not true. The FDA requires generics to work as quickly and as effectively as the original products.
Generic drugs often come in different flavors and colors, and may have a different combination of the active ingredients. This is because trademark regulations in the USA don't allow generic drugs to look like the branded versions. However, the active ingredients have to be the same in both to ensure the exact medicinal effect.
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