Eli5 – How do name brand drugs turn a profit?

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Might sound like a loaded question, but hear me out.

In the Good ol’ USA, generic drugs are required by the FDA to have the exact same make up as the name brand drug (ie. Benadryl vs generic Diphenhydramine). I’d imagine this is also a requirement in other countries.

So how exactly do those companies turn a profit when a generic version of their drug can swoop in and undercut them?

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16 Answers

Anonymous 0 Comments

people usually think the more expensive variant of a thing is better. especially when they see advertisements for it, which many brands have used very successfully.

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