Drugs sold as a cheaper alternative to brand named products are called buy generic drugs. Usually, generic drug companies cannot patent their active ingredients, but they can patent their own unique formulation.

The Food and Drug Administration of the United States of America governs all medications and according to them the generic drug is identical to the brand named drug, legally. Therefore, the same laws apply to generic drugs as their branded counterparts where strength, administration and safety are concerned. The save on prescriptions must contain the same active ingredient as the branded product and be within acceptable bioequivalent ranges.

Once the patent expires on a branded drug, generic drugs can be introduced into the market. This leads to competition on the market which brings down the price of both the generic and the branded drug.

American drug patents generally last 20 years, but manufacturers have to apply for the patent before starting with clinical trials. Hence, the active period of the patent is usually only about seven to twelve years.

Generic meds help patients and their health insurance companies to save a lot of funds. Once a patent is no longer protecting a drug, there is a much lower cost involved in developing a generic formulation and that savings enables the generic company to keep the costs down. Developing countries can then distribute this generic drug to their consumers at an affordable rate.

India is the world leader in generic drug manufacturing and generic drugs are distributed from there to many developing countries. Generics are created by applying reverse engineering to brand named formulations to create bioequivalent generics thereof. Generics don’t need to undergo clinical trials proving safety and effectiveness, which also saves time and money.

Generic drug companies leverage off the marketing efforts of the brand name drug, which after a number of years on the market has become well-known to healthcare professionals.  These same professional can now easily switch over their patients from the branded product to the generic medication.

Branded products monopolize the industry while the patent applies and this allows them to price the product as they wish to maximize profits. In doing this, they produce funds to research and create additional drugs, which generic med companies lack the funds for.

It is legal for generic developers to create a new generic version when either the patent for the branded product expires, when they can certify the invalidity of the original patent or in a country where the patent is not valid. Not all patents are valid in all countries.

On expiration of a patent, the monopoly is also removed. Patents are not normally renewable. Should the branded drug’s formulation change significantly in a new improved formulation, a new patent will have to be applied for. Clinical trials will also have to be done again. Generic versions can continue to be sold despite the changes to the original drug, unless regulators remove it off the market.

The save on prescriptions are welcomed by health care professionals and their patients. The import of generic medication to developing countries means better health care for all.

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