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Drug Policy

Generic Drugs:

A generic drug or generics is known to be a drug which is produced and distributed without patent protection. This drug may have a patent on the formulation but not on the active ingredient. It must contain the same active ingredients as the original formulation.

Patented medicine is usually expensive. This is because innovative brand-name pills require a higher amount of money and time in preparation. Besides, advertising and marketing techniques of these medicines are considered to be costly as well. The manufacturer has to compensate to meet all expenses. This is the reason price of these medicines is high. When generic products are made available in the market, competition usually leads to lower prices for both the original brand name as well as generic forms. Brand-name drug companies usually make use of several strategies to extend period of market exclusivity on their drugs, thereby preventing generic competition. This may also involve the use of aggressive litigation to preserve or extend protection of patent on the medicines.

Generic pills, on the other hand, are considered to be much cheaper. This is because they do not require any new formula or production technology. These pills are considered to be bio-equivalents of brand drugs, and hence, they do not need additional advertising. Generic manufacturers do not bear burden of proving safety as well as efficacy of drugs via clinical trials as these trials have already been carried out by the brand name company.

This makes generic pills cheaper and more popular among people. Generic medicines also save patients as well as insurance companies from substantial additional costs.