This [unedited] guest post is by a student in my EEP100 class (background post).
Please praise/critique/comment on its economic quality and importance to you.
Ana Lopez Castillo says:In short, the generic manufactures do not incur the high cost for research and development of new drugs. Instead, they wait until the patent protection is over, which usually takes about 20 years, to produce drugs with the same active ingredients as the brand-name ones. In addition, generic companies take advantage of the extensive and the million dollar marketing campaigns that brand-name companies used during the patent protection period. Overall, generic companies are able to produce at a very low cost because they did not have any research investments. In the same manner, generic companies do not have any exclusivity in the chemical formula which allows more companies to produce generic drugs resulting in tighter competition and decrease in prices.
Bottom Line: During your next visit to the pharmacy to get some drugs for a cold/flu think twice before you get the brand-name medication; the one next to it, has exactly the same chemical formula for less cost.
More information here
DZ Notes: Generics are not always "just as good" as their brand name equivalents.
1 comments:
The costs to develop a new drug average $500,000,000. Drug company shareholders need the drug company to recover those costs.
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