Why are generic drugs less expensive than brand name drugs?

Generic drugs often cost 30% to 50% less than brand name drugs.

The main reason generic drug companies can market their drugs at lower prices is that they don?t face the same development costs as brand-name companies. The process of research, development, marketing and promotion of the drug can cost hundreds of millions of dollars! Without the startup costs for development of the drug, generic manufacturers can afford to make and sell it more cheaply.

Are generic medications as safe and effective as brand name medications?

The term generic, when applied to foods or household products, is used to describe a less expensive, sometimes less effective or lower quality copycat version of a brand name product. However, most generic drugs, although usually less expensive, are generally as effective and of the same quality as the brand-name drug. But not always!

According to the FDA, all drugs, including brand name drugs and generic drugs, must work well and be safe. The FDA applies the same standards for all drug manufacturing facilities, and many companies manufacture both brand-name and generic drugs.

What is a brand name drug?

Every business has the right to promote its brand. After a pharmaceutical company develops a drug, that drug is granted a 20-year patent, which means that no other company can make it for the entire duration of the patent. When the drug is approved by FDA, it is given a generic (official) name and trade (proprietary or brand) name. Brand name medication can only be produced and sold by the company that holds the patent for the drug.

Generic Drugs: What is for?

Generic version of the drug always costs significantly less than the brand name drug. For example, 90 tablets of popular medication Tramadol 50 mg (if you buy it online) cost $85, while 90 tablets of brand name Ultram cost $205.