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You may be wondering how generics can be cheaper when they are identical to the branded drug. Here’s why.

The process of developing a drug, testing it, and obtaining approval for it from health authorities is a lengthy and costly one. The brand’s owners need to recoup the costs they incurred as well as the costs of marketing the drug once it is ready for release onto the market.

For this reason, a new drug will be patented for several years, enabling the original manufacturers to recover their costs and make a profit. Once the patent expires, any pharmaceutical company can produce generics.


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