Generic Prescriptions And Why They Are Less Expensive
My wife is adamant about us asking for generic prescription drugs when we need prescriptions. In fact, she gets upset if there isn’t a generic available, especially if it is something expensive like HGH or steroids. So why are they cheaper?
Generic drugs are cheaper for a number of reasons. They stem from the expiration of a patent, and this allows free competition, which immediately lowers the price.
Many different companies can now produce the drug and compete to sell it, so they want to get the production costs and profit margins down as low as possible while still retaining profitability in order to undercut their rivals.
Patent holders on the other hand, have great expenses in developing and testing a new drug, and often net high profits in order to make this money back before the patent ends. They don’t need to lower the price of their product as there is no competition. In additions, even after the patent wears out, they keep their prices high because they are the “branded” drug of choice for that particular ailment. What I’m getting it here is that people are unaware there is a generic available, but they do recognize the name of their favorite colon cleansing prescription.
There are often lower costs in developing and testing the drug for manufactures of generics. This is due to the fact that most of the hard work has already been done by the original developer and the competing company just has to prove to regulators their drug is bioequivalent and contains no harmful substances. They may not even have to go through any clinical trials.
They also receive benefits of the previous patent holders marketing and often the drug is already well known by the medical profession making it easier to sell. The lower price may also open up new markets who were priced out before. Of course, they have to kick in the marketing machine and get the word out to doctors.
Cheaper does not mean lower in quality as generic drugs are just as tightly regulated as branded alternatives. So next time you hit the pharmacy, see if there is an equivalent generic for your needs.
