How Much Could You Save With Generic Drugs?

Williams produced a number of nameless generic drugs under a simple white label. He sold these to supermarket stores in the USA. Soon after, major chain stores picked up on the idea and began selling their own 'nameless' products made by assorted manufacturers.

When it comes to medication, the main criterion is that the generic must contain the exact active ingredient as the branded formula. The FDA insists that generics are compliant with the bioequivalent range of the branded version with regards to pharmacodynamic and pharmacokinetic properties. This basically means that a generic drug must be identical in its strength, intended use, method of administration, dose, safety and efficacy.

A generic drug can only be distributed when the patent obtained for the original product has expired. When generics are available for public consumption, competition in the market leads to significantly cheaper prices for not only the generic, but for the branded product as well. In the USA, a patent usually expires after 20 years.

Generic medications save consumers and insurance companies lots of money. As previously stated, this is due to the fierce competition among producers. The costs of making generics are much lower, so companies are able to offer the public a cheap price while still turning a good profit.

The costs of generic drugs are so cheap that even third-world and developing countries are able to afford them. An example of this is Thailand. Millions of generic blood-thinning tablets were imported for just 3 USA cents each. This cost included delivery from India where the drug is made.

Generic companies are able to take advantage of any preceding marketing strategies and campaigns devised for the branded drug. This will include advertising promotions, giving away free samples, and drug presentations. There are hundreds of generic drugs that have been in use for more than 10 years.

People are still dubious about generics. Many believe they are manufactured in inferior facilities. They also claim that generics are sub-standard in comparison to the originals. Both of these are myths. The FDA has the same set of requirements for every type of drug manufacturer - generic or branded.

In fact, there are a lot of drug manufacturers that produce branded drugs and generics. The FDA has estimated 50% of generic drugs are produced by branded companies. Yet another myth is that generics do not work as well. This is also untrue. The FDA stipulates that generics have to work as effectively and as quickly as branded drugs.

The generic drugss are manufactured in varying flavors, varying colors and they may even have a varying mix of active ingredients. This is to comply with American trademark rules that state that generics cannot look the same as branded products. However, generic drugs are required to contain the exact active ingredients to ensure the same efficacy as the brand product.