Why Generic Drugs Cost Less?

A generic drug has the same potency and chemical makeup as that of a commercial brand, and usually costs far less than the commercial brand.

Unlike Generic Drugs, a large part of the costs incurred by original manufacturers of brand name drugs are for research and development and advertising. The expense of obtaining FDA approval alone in the U.S. is enormous. Manufacturers of Generic Drugs do not have to absorb or recover these costs. Consequently, significant cost savings can be passed along to you.

It is cheaper to make and sell generic drugs, so these savings are reflected in a lower price. Unlike the manufacturers of brand-name products, the makers of generic drugs don't incur the costs of research and development, marketing, and advertising. Since drug manufacturers have begun advertising directly to consumers, this has become a huge cost of doing business that is passed along to the consumer in the form of higher priced brand-name drugs. As for quality, the U.S. Food and Drug Administration (FDA) ensures that generic drugs are equivalent to brand-name drugs. By "equivalent," the FDA means that generics must contain the same active ingredients that work the same way in the body to deliver their medicinal effects.