The Pros And Cons Of Generic Drugs

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Currently, generic drug plays an important role in the pharmaceutical industry. A generic drug is a type of drugs which are nearly a copy of brand drug. When a brand drug is approved, the branded company will have drug patents to protect the new drugs from being copied for twenty years. Generic manufacturers may copy the drug formula and change some of the ingredients of the drugs and sell them after twenty years. Generic drugs have now been commonly used to be prescribed to patients (Razmaria & Aria, 2016). Generic drugs are known for its low price. Patients may come across the choice between generic drugs and brand drugs. While acknowledging there is a considerable amount of debates concerning generic substitution, this essay holds the view that generic drugs should…show more content…
Fischer et al. (2003) state that the potential savings of generic substitution can reach up to six million U.S dollars in Wisconsin in 2000. Generic drugs are often sold at a relatively low price because generic manufacturers may not need to pay the cost of innovating the new drug formula. They may just wait for the release of the brand drugs’ formulas. They only need to pay the cost of performing clinical trials to show that the generic drugs are effective. The cost of producing generic drugs is low. Hence, the generic manufacturers do not need to set up a high price for the drugs to earn profits. However, this argument is less convincing for the patients when they are considering a generic substitution. Masson et al. (1985) argue that some stores may try to draw customers into the store by lowering the prices of the brand drugs. When the prices of brand drugs are lowered, the gap between the prices of the brand and the generic drugs is also narrowed. Thus, it may reduce the chance that a customer will perform generic substitution due to few profits. Therefore, some customers may not prefer generic
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