Why are generic drugs less expensive than brand name products?
When a company develops a new drug, it has a patent for 17 years. The patent protects the drug company’s right to be the only manufacturer of that drug. After the patent expires, other companies can then manufacture and sell the drug under either a different brand name of the generic name. Because of lower research costs and more competition, the new product is sold at a lower price than the original brand name product.
