Why are generic medicines cheaper than branded ones?

Question

Why are generic medicines cheaper than branded ones?

Answer 1

The difference is between an original and a photocopy.

     Cost of Research and other costs are added to branded ones where as generic is a duplication.

Answer 2

When a Drug first comes on the market the drug company that first made it whats to recover their money.

they had to put in years of research and millions of $$ most of the time they are the only ones that can sell it for about 5 years after that other companies can make it and sell it.

most of the time they are very close to the original one

some times there are small changes to it

ie the filler might be different. some drugs are very close to others

some med's have more than one in them so in the generic drugs they tend to use the cheapest supplies in them.

it really does not change the effectiveness of it though

because that drug company who makes the generic one does not have to make up the money they spent researching the drug they sell it cheaper.

now most of the time the same drug company who made the brand name one also makes a generic one as well

Answer 3

Yeah, what the others said.  Take away the cost of advertising and fancy logos and packaging and you can sell for less.  Generally speaking the medicines are just as good but your doctor or pharmacist can usually tell you if they are.  There are exceptions.

Answer 4

Thats like asking, "why are Levi's Jeans more expensive than K-mart jeans."

Branding sells a product usually for more than its worth. This is marketing and is found anywhere where goods are sold. If branding convinces a GP to wrte a script for their product the marketing has been successful.

Answer 5

When a new medicine is developed the "manufacturers" (drug companies) receive  a patent like other "inventions" and cannot be duplicated for a certain number of years.  Drug companies tell the public this is necessary to cover the costs of their research and development of the medicine.  Actually this is only a small percentage of their costs - advertising and promotions of drugs are much greater proportion of the manufacturers expenses.  Much of the cost of drug development is covered by your tax money through government funding through the NIH, etc.

Answer 6

It is the same as with anything else. A designer shirt will cost more than a no name brand shirt. You pay more for the brand, nothing more.