Why are generic drugs less expensive than their brand-name counterparts?
Generic drugs are less expensive than their brand-name counterparts because they don’t have the initial investment costs of development and marketing. Brand-name drug manufacturers must absorb all of the initial costs involved in creating a new drug, including research, development, marketing, promotion, and patent protection. The manufacturers recover these costs by charging more for their drug. Once the patent for the drug expires, usually after 20 years, generic drug manufacturers can begin making and selling the drug for less. Also, competition between the various generic drug manufacturers helps to bring prices down.
