Top 5 Reasons Why Generic Drugs are Cheaper
According to the U.S. Food and Drug Administration (FDA), eight out of ten prescriptions filled in the country are for generic drugs.
In addition, the popularity of the generic drugs would increase in the coming years. They are as effective as branded drugs and less costly.
Generic drugs have the same efficacy, strength, and dosage, as innovator drugs. Top five reasons why generic drugs are cheaper:
It is inessential for generic drugs to undergo clinical trials.
Clinical trials undergo three phases: Phase I, Phase II and Phase III. All these require a substantial amount of money. Conversely, generic drugs do not have to undergo these processes. That said, pharmaceuticals manufacturing generic drugs save a lot of money and consequently, they can offer their products at lower prices than branded prescription drugs.
They do not generally have to spend for advertising and marketing.
Since it takes years for patents of branded drugs to come off, by the time generic drug prescriptions are out with these products, consumers already know much about these medications and have tested their efficacies. This gives generic drug manufacturers the advantage of not having to invest much on marketing and advertising their prescription drugs. With lesser expenses, they can afford to sell their products for less and even offer prescription discounts.
Time spent to develop and manufacture generic drugs are shorter.
Pharmaceuticals that plan to manufacture generic products do not have to spend on animal testing and clinical trials as opposed to new drug manufacturers. These drug companies just need to file an abbreviated new drug application (ANDA) and get approval to market their drugs. This means that they save a lot of time and consequently, save on manpower and overhead expenses.
Generic drug manufacturers have to beat their competitors.
After a drug patent comes off, any pharmaceutical company that wants to manufacture a generic equivalent can apply for ANDA. In the event that there will be two applicants for one drug, they need to share the 6-month exclusivity period. Consequently, one or both companies will lower their prices to beat the competitor.
Prescription discount cards cover generic prescriptions
Prescription savings card aids cash payment for all generic drugs like for branded medications. This especially works for patients who do not have insurance. Moreover, it is also possible to look up the prices for a generic equivalent to a brand-name prescription, which offers savings on time and money.
Generic drug prescriptions are lower in costs than their branded counterparts and yet have the same strength and efficacy. This is why more consumers opt for generic products these days. With the help of a pharmacy that offers great savings on select generic drug list, it will be easier to make the right choice.
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