Generic drugs refers to medication that have the same active ingredient as that of a branded drugs. When a medicine is first developed, the pharma company that develops and markets it receives a patent on its new drug. Patent typically last 20 years, giving the parent company a chance to recover its research investment. A generic version of the drug is available after the patent expires. Generics drugs are marketed as generic and meet the same FDA (Food and Drug Administration) quality and effectiveness standards as the original. These drugs are marketed only after a patent expiry and are lower in costs as compared to branded drugs.
Generic drugs are copies of brand-name drugs. They have the same dose, intended use, route of administration, and pharmacological effects as their brand-name counterparts. Brand-name manufacturers usually charge higher prices for their products than their generic counterparts. This is because brand-name manufacturers must pay for the cost of research and development to develop a drug. Moreover, manufacturers have patent protection that allows them 20 years to recoup those costs. The price of brand-name drug can increase considerably. Hence, generic manufacturers' prices are lower than those of the brand-name versions. Thus, generic drugs are cheaper than brand-name medications.
This is because they do not require extensive research and development, as well as marketing or advertising. This is because the cost of developing a new drug is enormous. Furthermore, a new drug requires extensive research and development. A patent protects the rights of brand-name manufacturer to sell the drug for 20 years, after which the generic version will be able to compete with it. The quality of generic drugs is the same as that of the brand-name version. This is because the same active ingredients are used for both. The manufacturing process of generics is also the same as that of the brand-type drug. This in turn ensures that the products (generic drugs) are as safe and effective as their brand-name counterparts.