Why do brand name drugs cost more than generics?
It takes several years, costly scientific
development and many clinical studies
to get a drug approved. Manufacturers
of new brand name drugs (also called
“pioneer drugs”) usually take on the
research and development costs for new
medications. These research and development
costs, along with marketing costs,
account for most of the higher prices we
pay for most brand name drugs.
In contrast, generic drugs have less
research and development costs since the
original manufacturer has already done
many studies to make sure the drug is
safe. These savings are passed on to the
consumer.
However, while the brand name form is
still protected by its patent, no generics
can be produced. And, if a brand name
drug has only just recently lost its patent,
there may only be one generic form available.
Usually, when there’s only one
generic option available, it will be more
expensive.
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