There seems to be a lot of mystery revolving around generic drugs, but they are not as mysterious as they seem. Basically, they are copies of brand named drugs. The more scientific term is bioequivalent. According to the FDA, generics must possess the same dose requirements and overall quality of the innovator drug.  The generics must have their own distinctive look and name, however.

Generics and their innovator both share the same active ingredient, but they may or may not differ in their inactive ingredients. Consumers must be able to tell the difference between the two, therefore packaging and the actual look and taste of the drug will differ.

Generics come about usually within a time span of 7 to 12 years after the original. U. S. patents are protected for 20 years, but companies put in their applications several years in advance due to clinical trials. This, therefore, reduces the time generics can enter the market. Once they do, their prices are much lower because the major companies have taken on all of the primary costs.

The lower price is a major plus for price conscious consumers, but safety has always been a concern when it comes to taking generic drugs. The FDA has deemed them safe to use as they are equivalent to their innovator. There are always side effects or possible problems with any drug, so consult a doctor before administering.

Since their lower cost is the major reason why users flock to these drugs, they have become higher in demand. Doctors still tend to prescribe brand named drugs because this is the standard they are use to. It is your option and right to ask for a less expensive, generic alternative.

There is some crossover in the market that may be surprising for many to learn. Approximately half of the generic drugs out there are produced by major brand named companies. They produce their popular name brand along side the generic brand, which is then sold at a lower price. This way they have reduced the impact of competition on their sales and target both markets.

There are also drug companies that exclusively manufacture generics. They understand the high demand for low cost prescription and over the counter drugs. There are many Americans who are either under-insured of or not insured at all and need price breaks wherever possible.

Generic drugs are considered just as safe and effective as brand named drugs. As with any medication, it is wise to consult a physician before changing any pre-existing prescriptions. If available, this are always the alternative of generics that should be discussed with your doctor or a pharmacist.

A drug manufacturer invests money to develop new medications. This process costs time and money to do the research and clinical trials. This is a large investment and generic drugs do not have that expense attached to them. After the drug is approved, the company holds a patent on that drug.

The patent has a time limit placed on it. Patents are effective for different lengths of time in different places. When the patent is expired, the same drug in generic formula can be made by other pharmaceuticals manufacturers.

The generic must contain the active ingredients the original brand name drug has. The FDA requires this. The generic version must be nearly identical to the brand name (the active ingredients must be nearly the same).

The cost of generic drugs is much lower than the brand name for two good reasons. They are copied, which relieves them of the expense of research and clinical trials. Another reason is that more than one company can manufacture a generic version.

This creates competition between generic producers. When competition enters the picture, prices drop lower. The consumer will ordinarily prefer to buy the lower cost product as long as it has the same benefits.

It costs much less to produce generic drugs in some countries. India is the biggest producer of generic drugs. This is because people work for wages that are minimal compared to wages in the United States.

The United States President signed a new law on March 23, 2010. The FDA is required to approve all generic formulas prior to their sale. The original producer has twelve years of exclusive rights protected by patent law. After that generic versions can be produced and sold to the public. This law is named the Patient Protection and Affordable Care Act.

More generics are sold in the US than any other single country. When the patent protection expires on current brand name drugs, a large portion of them will be produced as generics. Generics medications already have approximately 78% of the US pharmaceuticals market. The implications of this fact on the market are yet to be seen.

All prescription drugs cost money to ensure safe manufacturing. One component of the cost of pharmaceuticals is the high cost of advertising on TV. It is obvious that the profit margin is higher as a result of those expenditures.

The cost is high for advertising. It does not point out to the consumers that generics can be produced in India for a portion of the cost it takes to produce them in the US. The large drug manufacturers have factories in India. These drugs are made safely at a fraction of what consumers pay for them. Yet, they imply it is unsafe to buy drugs from overseas.

To ensure safety, Indian law has enacted the death penalty for any pharmaceuticals manufacturer who knowingly makes unsafe or deliberately harmful generic drugs. This penalty covers all the producers of generics regardless of who buys them. This regulation keeps the consumers safe.