Are generic drugs as good as brand name drugs?

Because generic drugs are often a lot cheaper than the brand-name versions, people wonder if the quality and effectiveness are not the same. Generic drugs are copies of brand-name drugs that have exactly the same dosage, effects, intended use, side effects, risks, safety, and strength as the original drug. In other words, their effects on the body are exactly the same as those of brand-name drugs.

The U.S. Food and Drug Administration (FDA) requires that generic drugs be as safe and effective as brand-name drugs. The FDA applies the same standards for all drug-makers. Many companies make both brand-name and generic drugs. In fact, the FDA estimates that 50 percent of generic drugs are made by brand-name companies.

Why are generic drugs cheaper?

Generic drugs are only cheaper because the makers of the drug do not bear the cost of developing and marketing a new drug. When a company brings a new drug to the market, they spend substantial money on research, development, marketing and promoting the drug.

The company that developed the drug has an exclusive right to sell the drug as long as the patent is in effect. As the patent nears expiration, manufacturers can apply to the FDA for permission to make and sell generic versions of the drug.