Despite having similarities, generic drugs are sold at a much cheaper price than brand-name drugs or patented drugs. The factor that most influences the low selling price of generic drugs are because these drugs are sold without a brand. There are also generic drugs that are not patented by the manufacturer.
Difference Between Generic Drugs and Patent Drugs
The drug brand comes from the drug company that first patented it. With a patent drug, a drug company can be the only company that sells the drug under the brand they created. The expiration of the validity period of the patent was carried out to eliminate the monopoly on drug sales.
With the loss of brands, the costs incurred by drug companies can be reduced. One of the most expensive is the cost of advertising. Generic drugs do not use advertising for their promotion, therefore they can be cheaper.
Also, to advertising the costs, another major source of funding is …