Drug Policy

Here’s why brand-name drugs are more expensive:

• Research and Testing: It takes years and a lot of money to invent a new drug and test if it’s safe and works well.

• Patent Rights: The company that invented the drug gets time alone to sell it, with no competition, so they can charge more to make back their money.

• Advertising Costs: Brand-name companies spend a lot on TV ads, doctor promotions, and more.

• No Competition: While a drug is under patent, no other company can make it, so prices stay high.

Now here’s why generic medicines are cheaper:

• No Expensive Research Needed: Generic makers use the same formula, so they don’t have to do new studies.

• Patent Has Expired: Once the patent ends, many companies can make the same medicine, so prices go down.

• Less Advertising: Generic drugs don’t need flashy ads or marketing.

• More Companies Compete: With more choices in the market, companies lower prices to stay competitive.

• Faster to Market: Generics can be made quickly once allowed, so patients don’t have to wait.

Also:

• Generic drugs use the same ingredients as brand-name ones.

• They don’t need new ways to be made.

• They don’t have to repeat safety tests, since the original drug already passed them.