If you are wondering why different medicines containing the same compound vary in their selling price, the answer is here. Generic medicines are a copy of the original medicines and like followers of a main compound.
Medicines that contain the original product developed by a pharmaceutical company after undergoing a series of clinical research evaluation and documentation are called branded medicines. Whereas, generic medicines are those, which are copied by the other pharmaceutical companies after the patent for the founder drug has run out. The difference between the two is similar to that between an original drug and varying copies of the same drug.
Generic medicines
While the active ingredient in generic medicines is the same as the branded medicines, some inactive ingredients are also added to it. These do not have medicinal properties and are mainly added to give taste, color, shape and to look different.
Expenses on drug making
The founder drug company bears huge expenses on drug discovery, clinical trials, regulatory documentation and marketing and advertising of the drug. As a result, after obtaining the patent the brand medicines enter the market at a higher price.
The patent is valid for a specific number of years during which only the founder company can market the drug. However, after the patent is over, other pharmaceutical companies are free to use the same discovered drug and use it as the active ingredient to manufacture their own medicines.
Thus manufacturing of these generic medicines does not involve the costs incurred on the whole process of discovering to approval of the active ingredient. The generic drug companies just take the active ingredient and continue from there onwards.
Hence, the costs borne by them on manufacturing their generic medicines is relatively less than the original brand. This is the main reason why generic medicines are cheaper than the original branded medicines.