What are generic drugs
Many drug manufacturers are given exclusive patent rights to manufacturer a particular prescription drug under a specified brand name, until the expiry of that patent. Pharmaceutical industry has evolved enormously in the present times, owing to increasing mass awareness for a better health. Researchers across the world are engaged in developing miraculous drugs. Once, such a prescription drug is developed the company has full rights to get its patent done and continue to produce that medicine under its brand name. However, other companies too can manufacture the same prescription drug but under another generic name dissimilar from the brand name. This generic name is coined from the chemicals used in the drug and reflects its chemical composition. Brand name on the other hand is the name given by the patented drug manufacturer.
No company can manufacture a generic version of a patented drug before the expiry of its patent. Once the patent expires, these generic drug manufacturers can apply to regulatory bodies in their state to manufacture a generic cousin of that prescription drug. Thus, it is a cheap replica of the branded drug under a generic name. It has the same effect as the prescription drug has but at a lower price.