| Sometimes vast amounts of time and money | | | | by the original company that has familiarized |
| expended on research and development of a new | | | | people with the drug and will not have to get the |
| drug, exclusive manufacturing patents are given | | | | idea of the product before the public view. |
| to drug companies for new products. This allows | | | | Once the exclusive patent expires on a drug |
| the developing company a chance to be the only | | | | there is almost no way to renew it. Patent laws |
| source for a new medical treatment for a | | | | vary from country to country and there are a |
| number of years. | | | | few that do not recognize and accept the patents |
| This time will vary. A patent in the United States | | | | from the country of origin. Once a patent has |
| is usually given for a twenty year period, but | | | | expired it is available for duplication. An originating |
| since this time begins counting down from the | | | | company cannot extend the patent by changing |
| beginning of research, the effective market | | | | some of the formula as this is in effect making a |
| window can be years less. Once the originating | | | | new drug, however similar, and would have to go |
| company has had a chance to make back their | | | | through the entire qualifying process again. |
| investment, the patent expires so that other drug | | | | There is also the consideration that while a |
| companies may also manufacture the drug under | | | | specific drug formula may be under patent, there |
| a generic label. | | | | can be other forms available provided the active |
| These generic drugs are supposedly the exact | | | | ingredient is not patented. It then falls on the |
| same chemical compound although a few | | | | prescribing doctor to know which form of a |
| variations are allowed so long as the counterpart | | | | certain chemical will have the desired effect on his |
| generic can match the same bioequivalent effects | | | | patient. |
| of the original compound. Once these copycat | | | | There are regulatory tests to assure that the |
| drugs come on the market, the competition | | | | generic form of a drug is equivalent to the original |
| between them and the original product generally | | | | although some small changes in the exact |
| creates a price drop that can save the consumer | | | | chemical elements are allowed provided the |
| and insurance companies a great deal of money | | | | substituted ingredients are equally effective as the |
| while providing the same beneficial medicine. | | | | original. This is usually the case in some of the |
| There are two major reasons why generic drugs | | | | chemicals that help carry the active ingredient into |
| can be sold for a greatly lowered price than the | | | | the blood stream. |
| original patented drugs. Firstly, the research and | | | | While these substitutes are tested to see that |
| development stage is already been done so there | | | | they perform equally, there is the bias among |
| is no great cost associated with their production. | | | | some doctors that only the original works the |
| Also, with competition for the drug, regular | | | | way they want and will disallow generic drugs to |
| market practices take over and the ability to | | | | be filled by a pharmacy. There is no scientific |
| choose between brands will usually keep the cost | | | | rationale for this as the generic drugs have to |
| at a competitive level. | | | | pass the equivalence test before they can be |
| To a lesser degree, generic drug producers can | | | | released. |
| also take advantage of the previous advertising | | | | |