Generic pharmaceuticals are equivalent to a brand-name product but are less expensive to market resulting in cost savings for the patient.
According to the Generic Pharmaceutical Association, generics make up 89% of prescriptions dispensed but only 27% of total drug costs, resulting in a savings of $227 billion in 2015.
Generic drugs may differ from their branded counterparts in shape, color, packaging and labeling, flavoring and preservatives.
The lower price of generic drugs is possible because they are bio-equivalent of drugs brought to market by branded pharmaceutical companies which invest significant funds for development, launch and marketing of the branded product.
All generic manufacturing, packaging, and testing sites must pass the same quality standards as those of brand name drugs, and the generic products must meet the same exacting specifications as a brand name product. In fact, many generic drugs are made in the same manufacturing plants as brand name drug products.