Companies justify their prices because they expect to be reimbursed for the costs incurred during research, development, production, and advertising. After the patent expires, other drug companies are allowed to copy and sell the generic at reduced costs-cutting into the profit margin of the brand drug. Generics are less expensive because they do not require the manufacturer to repeat costly clinical trials on the active ingredients already found to be safe and effective. Generics pose no greater risk for adverse effects than brands with identical active ingredients. Such allergic reactions, however, are rare.
Generics save consumers billions of dollars annually.
Medication costs will decrease if the majority of patients accept generic alternatives. In fact, since there is no set price for a single drug in the United States, different pay rates exist for insurance companies and patients. The market forces of supply and demand determine cost. Pharmacists have a great responsibility in reassuring their patients that generics are safe, effective, and significantly less expensive than brand name drugs. Switching to generic prescriptions helps the patient-especially the elderly, who have less disposable income.