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Overview Why Drugs Are Expensive Spiraling Drug Cost The Truth About Generics Myths and Facts
 
Generic drugs are made with the same active ingredients and produce the same clinical benefit as their brand-name equivalents. By federal law, each generic drug is laboratory-tested to ensure the same amount of drug will be absorbed into the bloodstream. The difference? Name and price.
 
Who Makes Generics?
 
Drugs are originally marketed by their brand name, which is protected by patent for up to 20 years. Until the patent expires, no other companies can produce the generic equivalent, keeping the cost to the consumer higher. When the drug patent expires, the drug is able to be released by other companies, creating competition. The color or shape of the drug and the price may differ.
  Did You Know...
 
  • The FDA requires generics to have the same quality, strength, purity and stability as brand names.
  • Generic drugs are held to the same federal Food and Drug Administration standards for safety and performance as the brand names but they sell for much less.
  • The Congressional Budget Office says generic drugs save consumers an estimated $8 billion to $10 billion a year at retail pharmacies. Billions more are saved by hospitals using generic drugs.
  Key Endorsements
 
  • The American Medical Association, the largest organization of medical doctors, endorses generic drugs as acceptable for the American public.
  • Hospitals routinely use generic drugs for treatment of their patients.
  • The Food and Drug Administration (FDA) enforces generic drug standards through legislation.
 
 
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