Why generic medicines are cheaper

Generic medicines are typically cheaper than brand-name medications for several reasons:

1. Research and Development Costs: Brand-name drugs often involve extensive research and development (R&D) processes, which can cost hundreds of millions of dollars. These costs include clinical trials, testing, and regulatory approvals. In contrast, generic drug manufacturers do not need to repeat these expensive R&D steps.
2. Patents and Exclusivity: Brand-name drugs are protected by patents, granting the pharmaceutical companies exclusive rights to produce and sell them for a certain period (usually 20 years). During this time, no other company can make the same drug. Once the patent expires, other manufacturers can create generic versions, leading to increased competition and lower prices.
3. Advertising Expenses: Brand-name drugs invest heavily in advertising, including TV commercials, billboards, and other marketing efforts. These costs are passed on to consumers. Generic drugs, on the other hand, do not have the same advertising expenses.
4. Bioequivalence: Generic drugs must demonstrate bioequivalence to the brand-name version. This means they contain the same active ingredients and produce similar therapeutic effects. However, they do not need to repeat extensive clinical trials for safety and efficacy, which reduces costs.

In summary, generics are more affordable because they avoid the high initial R&D costs, patent exclusivity, and extensive marketing expenses associated with brand-name drugs.