Question Banks
Question
1. Generic drugs use an alternative cheaper Active Pharmaceutical Ingredient (API) for making the same medicine.
2. Generic drugs are not subject to any regulatory constraints.
Which of the above given statements is/are correct?
Solution
- They are copycat versions of brand-name products and — to a point — their prices are expected to drop over time.
- When a brand-name drug first loses its patent protection, prices fall slowly.
- Over the next couple of years, as more competitors enter the market, the prices drop even more, until the pills become commodities and sell for pennies.
- A generic drug is identical — or bioequivalent — to a brand name drug in dosage form, safety, strength, route of administration, quality, performance characteristics and intended use.
- Although generic drugs are chemically identical to their branded counterparts, they are typically sold at substantial discounts from the branded price.
