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Why do generic medications cost less than brand name drugs? |
| Date Added: February 28, 2010 01:23:33 AM |
| Author: anvgelica19 |
| Category: Education And Reference: Reference |
| According to the U.S. Food and Drug administration (FDA), to get FDA approval, a generic medication must: comprise the same active ingredients as the branded medicine (inactive ingredients may differ), be identical in concentration, dose form and route of administration; meet the same batch requirements for identity, strength, quality and purity; be made under the same strict standards of FDA's Good Manufacturing Practice regulations obligatory for brand name drugs. In other words, their pharmacological effects are identical to those of their brand name versions. Although generic drugs are chemically identical to their branded versions, they are ordinarily sold at substantial discounts from the trade name cost. It is estimated that generic medications save consumers $8 - &10 billion annually at retail pharmacies. Even more billions are saved when hospitals use generic drugs. The chief reason for the comparatively low price of generic drugs is that competition goes up among manufacturers when medicines no longer are protected by patents. Producers spend less money on creating a generic drug, and are, hence, able to sustain profitability at a lower cost to customers. The low costs allow many developing countries to easily afford them. For example, Thailand is going to import millions of doses of the generic version of Plavix, a blood-thinning medication to preclude heart attacks, at a price of 3 US cents per dose from India, the leading producer of generic drugs. Makers of generics do not need to spend money on discovering a drug, and instead are able to reverse engineer known medication compounds to allow them to produce bioequivalent versions. Producers do not bear the burden of proving the safety and potency of the drugs through clinical trials, since these trials have already been carried out by the brand name company. At times, generic versions of a drug have different colors, flavors, or combinations of inactive ingredients comparing to original drugs. According to the U.S. Trademark law, generic medicines are not allowed to look exactly like brand name drugs. Nevertheless, active ingredients must be the same in both preparations, ensuring that both have the same medicinal effects. |
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