A generic drug is a pharmaceutical drug that contains the same chemical substance as a drug that was originally protected by chemical patents. Generic drugs are allowed for sale after the patents on the original drugs expire. Generic drugs consumption is only 10-12 percent of the total drug market. Greedy attitude of the drug manufacturer companies, medical stores and doctors don’t want to spread the market of generic drugs. In today’s world almost all type of generic drugs are available at the price lower than the branded medicines.
How It Works?
For the treatment of any one disease, a chemical (salt) is prepared after all kinds of research and study; later on the name of the medicine given. Every company sells this salt by different names. Some sells it at higher price and some at lower.
The generic name of this salt is determined by a special committee keeping in mind the composition of the salt. The name of the generic drug would be the only one in the whole world, such as tablet of “Paracetamol” which is used in fever; every company gives different names, but if it is generic, then every country must name it ‘Paracetamol’ only.
Why Generic drugs are so cheap:
1. Generic drugs are so cheap because companies that make them do not have to make a separate laboratory for research and development.
2. There is huge competition among generic drug manufacturers due to which prices get reduced.
3. Generic drug manufacturer don’t waste money in the advertisement that is why their cost of production is low.
4. Generic drugs are made and distributed without any patent. Generic medicine can be patented, but its material can not be patented which is another reason for lower price.
The greatest disadvantage for these drugmakers may be their lack of an advertising budget. You generally don’t see ads for generics. It is perhaps this lack of exposure and gloss that make generics “less cool” to patients, says William Shrank, an assistant professor of medicine at Harvard Medical School. “It is hard to sell something that’s ‘as good but less expensive.’ It does not have the same sexiness.”