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Generic Drugs May Save You Money | Brand vs. Generic Costs | Why Brand Name Drugs are Expensive | Facts About Generics | What CareFirst is Doing to Control Drug Costs
Facts about Generics
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| If you take Zocor or another statin drug to help lower your cholesterol, ask your doctor if Simvastatin, a new generic equivalent to Zocor, might be every bit as safe and effective while saving you money in out-of-pocket prescription costs. |
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Generic drugs are made with the same active ingredients and produce the same effects in the body as their brand-name equivalents. By federal law, each generic drug is laboratory-tested to ensure the same amount of drug will be absorbed into the bloodstream. The difference? Name and price.
- U.S. brand pharmaceutical sales for 2004 were $235 billion -- generics accounted for $18.1 billion.
- Based on the number of prescriptions dispensed, four of the top five pharmaceutical companies were generic companies.
- 7,602 of the 10,375 drugs listed in the FDA's Orange Book have generic counterparts.
- Generic drugs are held to the same federal Food and Drug Administration standards for safety and performance as the brand names yet sell for 30-75 percent less.
- To earn FDA approval, a generic must deliver the same amount of active ingredients in the same time as the brand name.
- The FDA requires generics to have the same quality, strength, purity and stability as brand names.
- The Congressional Budget Office says generic drugs save consumers an estimated $8 billion to $10 billion a year at retail pharmacies. Billions more are saved if hospitals use generics.
Who makes generics?
Drugs are originally marketed by their brand name, which is protected by patent for up to 20 years. Until the patent expires, no other companies can produce the generic equivalent, keeping the cost to the consumer higher. When the drug patent expires, the drug is able to be released by other companies, creating competition. Brand-name firms are linked to an estimated 50 percent of generic drug production. The only difference may be the color or shape of the drug and the price.
Key endorsements
The American Medical Association, the largest organization of medical doctors, endorses generic drugs as acceptable for the American public. And most hospitals routinely use generic drugs for treatment of their patients. The Food and Drug Administration (FDA) enforces generic drug standards through legislation. See related links below for the facts on generic drugs from the FDA.
About Generics from the Food and Drug Administration:
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