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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1. The companies who own the patents get a number of years of exclusive rights to sell the drug, so can set prices without market competition.
2. After the patent expires they need patients to be willing to go for the name brand, and preferably demand it when the doc prescribes it. This is the reason the marketing budget of many pharma companies is on par with, and sometimes exceeds, their R&D budget.
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