Why are most generic drugs less expensive than brand name products?
When a company develops a new drug, it has a patent for about 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 or the generic name. Because of lower research costs and more competition, the new product is usually sold at a lower price than the original brand name product.
