What is a generic drug?

A generic drug is a medication that has exactly the same active ingredient as the brand name drug and yields the same therapeutic effect. It is the same in dosing, safety, strength, quality, the way it works, the way it is taken, and the way it should be used. Generic drugs do not need to contain the same inactive ingredients as the brand name product.

Generic drugs are usually much less expensive than brand name drugs once they reach the market. A drug company develops new drugs as brand name drugs under patent protection. This protects their investment in drug research by giving the drug company the sole right to manufacture and sell the brand name drug while the patent is in effect.

Why are generic drugs cheaper?

Although generic drug active ingredients are chemically identical to their branded counterparts, they are typically sold at a cheaper price than the brand name drug.

Generics are less expensive because the drug manufacturer does not have to duplicate the original clinical trials for effectiveness and safety, which lowers the cost to bring the drug to market. Generics are not less expensive because they are lower in quality.