The United States spent 450 billion dollars on prescription drug expenditures in 2016.
Despite the fact that generic medications make for 90% of prescriptions filled in the United States, branded medications account for 74% of medication spending in the United States.
Every year, generic medications save the United States billions of dollars. In reality, generic medicines saved consumers in the United States 253 billion dollars in 2017 and almost 1 trillion dollars over the previous decade.
In this blog, we’ll discuss some of the differences between branded and generic medicines.
Patents and exclusivity are granted by the FDA for brands to manufacture innovative drugs that they have researched and developed.
Brand manufacturers benefit from protection for several years, allowing them to benefit from their research and innovation. No generic versions can contend with the original branded drug during this period of time.
Generic drugs are chemically identical to brand-name pharmaceuticals and contain the same active components. Generic drugs are also less expensive than branded prescription drugs. Generic medications, on average, cost 85% lower than their brand-name counterparts.
Generics can access the market after the patent expires, thanks to a streamlined FDA review and approval. Generic drugs must satisfy the same purity, quality, and efficacy requirements as brand-name medications.
The majority of active pharmaceutical ingredients (API) and generic medicines are manufactured in nations other than the United States, such as China and India.
Why do Branded Drugs Cost More?
Discoveries made possible through research and testing are known as brand medicines. Before they become ready for human use, new medications go through months and even years of experimentation on humans and animals to ensure safety and efficacy.
This costs a lot of money, but it ensures that brand corporations have patent and exclusive protection for a few years. To benefit from this discovery, the drug company can establish any pricing for that medicine.
Both generic drugs and branded drugs are safe to take, but the rising costs of medication have made both types of medicines very expensive. People who suffer from chronic illnesses or diseases that require high-cost medications tend to find it very difficult to pay for their prescriptions, especially if they are uninsured or underinsured.
If you are struggling with your prescription costs, enroll in one of The Rx Helper’s prescription assistance programs. We are a leading patient prescription assistance company that aims to offer a prescription assistance program for uninsured individuals in the U.S. All you need to do is fill out an enrollment form on the website and if approved, pay a monthly service fee after which you can get your medication provided at little to no cost. Contact us now for further assistance.
Disclaimer: This article is only intended for educational purposes and shouldn’t be used as a substitute for medical advice.