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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Anonymous 0 Comments

For some people the name brand drugs do work better for no other reason than the taker believes they are better. The placebo effect is awesome but weird. So what I’m saying is that those who will pay more for their drugs will likely get a better result by paying more for their drugs.

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