Save Thousands By Switching To Generic Drugs

Generic drugs are a medication that is produced and distributed, but does not have a patent. The cheap generic don't have patents on their active ingredient, but may have a patent on their unique formulation. A brand name drug with the same function would be the main brand and the generic is generally a cheaper alternative.

The Food and Drug Administration of the United States of America governs all medications and according to them the generic drug is identical to the brand named drug, legally. Therefore, the same laws apply to generic drugs as their branded counterparts where strength, administration and safety are concerned. The cheap generic drugs must contain the same active ingredient as the branded product and be within acceptable bioequivalent ranges.

Once the patent of the original developer expires, generic medications become available. When this happens, competition in the market lends itself to lower costs for both the generics and the brand name products.

American drug patents generally last 20 years, but manufacturers have to apply for the patent before starting with clinical trials. Hence, the active period of the patent is usually only about seven to twelve years.

Health insurance companies and the consumer save a lot of money with generic drugs. When drugs are no longer patent protected, pharmacological companies have lower costs in developing the generic drug that enables them to uphold profitability and therefore the savings are passed on to the patient. Even developing countries are able to afford generic drugs easily.

India is the world leader in generic drug manufacturing and generic drugs are distributed from there to many developing countries. Generics are created by applying reverse engineering to brand named formulations to create bioequivalent generics thereof. Generics don't need to undergo clinical trials proving safety and effectiveness, which also saves time and money.

Generic drug companies leverage off the marketing efforts of the brand name drug, which after a number of years on the market has become well-known to healthcare professionals. These same professional can now easily switch over their patients from the branded product to the generic medication.

Since the brands monopolize the market during the patent period, they are able to price the product as high as possible to maximize their profits. So they acquire the funds to create and develop more new drugs. Generic medicine developers generally don't have the funds for this.

Generic meds can be developed legally when the patent of the name brand has expired, when it can be certified that the original patent is invalid or in the case where the company does not have a patent in a specific country. Note that a patent does not automatically apply worldwide.

Market monopoly is removed when a patent expires and they are generally not renewable. If a brand name company changes their formulation drastically, they have to apply for a new patent. New clinical trials will have to be performed. While this happens, the generic drug can still be sold unless it is removed from the shelves by regulators of the FDA.

The generic drugs are welcomed by health care professionals and their patients. The import of generic drugs to developing countries means better health care for all.