Generic Prescriptions Will Cost You A Good Deal Less Versus Brand Name Pharmaceuticals
by Admin on Apr.11, 2010, under Uncategorized
A new drug costs millions of dollars to discover, test and run clinical trials on before putting it on the market. The drug manufacturer invests this time and money. In return, they are granted a patent on a new drug. Generic drugs can be manufactured only when a patent has expired.
The Federal Drug Administration imposes a time limit on the patent. The length of time one remains in effect varies from country to country. Once the patent has expired, other manufacturers are entitled to produce a generic version of the drug.
The generic version is required to contain the identical ingredients that are present in the original formula. The Federal Drug Administration places requirements on the generic version. The generic has to contain the same or close to the same amounts of what are referred to as the active ingredients.
The cost of generic drugs is much lower than the brand name for two good reasons. They are copied, which relieves them of the expense of research and clinical trials. Another reason is that more than one company can manufacture a generic version.
Where competition exists, price goes down. The generic producers compete for the consumer’s dollar and it keeps prices low. It is only natural for a consumer to buy the cheaper product as long as the quality is maintained.
Generic drugs can be manufactured cheaper in some countries. India is one example. It is because the workers are paid much less in wages than workers in the United States.
President Obama signed a new law into effect on March 23, 2010. It gives the FDA the task of approving generic formulas before they can be produced and sold. The original developing company is granted twelve years of exclusivity. After that time period, a generic version can be made and put on the market. The new law is called the Patient Protection and Affordable Care Act.
Consumers in the United States buy more generics than people in any other single country. As soon as a patent expires on any brand name pharmaceutical, it can be made as a generic. Those medications have captured 78% of the market currently. This will have a huge impact on the market for all medications sold in the US.
Drugs, brand name and generics alike, cost money to produce safely. The advertising we see on TV is only one component of the drug industry. With TV advertising selling at high prices for 30 second time periods, it is apparent how much of a profit the pharmaceutical producers are making.
This advertising does not mention that generics are made in India at a fraction of the cost for them to be made in the USA. The cost of advertising is factored into the price. Drugs are made safely in India in spite of the implications that drugs from overseas may pose a hazard to your health.
To ensure safety, Indian law has enacted the death penalty for any pharmaceuticals manufacturer who knowingly makes unsafe or deliberately harmful generic drugs. This penalty covers all the producers of generics regardless of who buys them. This regulation keeps the consumers safe.
