What impact does the introduction of generic drugs have on pharmaceutical costs??

Question

What impact does the introduction of generic drugs have on pharmaceutical costs??

Answer 1

It lowers them. Generics cost less as a matter of business principle, so they can undercut the monopolized price set by the medication's inventor. And then insurance companies insist that they get to buy the generic for you when you get a prescription from the doctor.

Answer 2

When pharmaceutical companies do research and come up with new drugs, it cost millions of dollars. After they develop a new drug, they have a monopoly on the production of those drugs for 7 years. After seven years other companies can produce generic versions of those drugs. Generic drugs, then cut into the original products cost margins. Many insurance companies will only allow their customers to get generic drugs, so it would have a major impact on the profit margins of these drugs.

Answer 3

generic drugs are cheaper so of course everyone chooses those over the more expensive kind