Generic Drugs in Demand

Generic Drugs are in demand all over the world. Generic drugs are defined as the drugs, which has the similar properties and effects as their brand-name drugs whose patent is expired. Generic Drugs are crossing all the sales records in the market because of their low prices. Generic drugs are easily available in the market and they even do not require the prescription depending on the rules in the country in which you are buying them.

Aspirin was the first generic drugs launched by Sterling (a pharmaceutical company in United States) in 1920. Aspirin was a first discovered by the German company, Bayer, in 1899 and was selling it in United States under the brand name. Bayer registered the case against the Sterling for using the same formulation to prepare the drug and selling its inferior quality product under its brand name. Sterling won the case as it showed that it was not using the same formulation, and the generic drug it produced was showing same effects as the brand name drugs. Hence, the generic drug became available in the market for the consumers and the demand started growing.

Sterling company was selling the Aspirin at lower cost because it was producing the drug in United States itself, whereas Bayer has to import it from Germany. Hence, the trend started from here to sell the Generic drugs at lower cost. Generic drug industry started flourishing after Hatch-Waxman Act i.e. Drug Price Competition and Patent Term Restoration Act in 1984. The FDA calls it “one of the most successful pieces of legislation ever passed.”

The Hatch-Waxman Act made it much easier and cheaper to bring a new generic drug to market. According to this act, generic drug producing companies merely had to prove that their drug had the same active ingredients and that they were absorbed into the body at a rate within 20 percent of the rate of the brand drug. The act also increased the amount of time a company could hold an exclusive patent on a new drug. Within a year, the FDA received more than 1000 applications for new generic drugs, and the Generic Drug industry was born.

Generic drug industry has now capture 65% medicine market in United States. Insurers are also forcing the doctors to prescribe the generic drugs. World wide growth is observed in the demand on generic drugs.