How are they able to offer generic brands of prescription drugs at such low prices? What do they do differently from traditional pharmacies to offer the drugs so incredibly cheap?
In: 157
The actual manufacturing costs of manufacturing generic drugs is pretty low outside of the initial investment, which is why they are generally cheaper everywhere but the US. Others talked about not dealing with insurance and all of that, which is very much true, but the typical way drugs are priced is that you are charging for the manufacturing and distributing costs, as well as sunk R&D costs spent by the original developer of the drug. Since that’s how things generally work, and people generally are willing to pay that kind of price in the US, that’s what most companies charge, but it doesn’t inherently have to be like that, especially when not dealing with other companies in the industry.
Latest Answers