Generic drugs are cheaper for a number of reasons. The
expiry of a patent allows free competition, which
immediately lowers the price.

Many different companies can now produce the drug and
compete to sell it, so they want to get the production
costs and profit margins down as low as possible
whilst still retaining profitability in order to
undercut their rivals.

Patent holders on the other hand have huge expenses in
developing a new drug so often place huge profit
margins in order to make this money back before the
patent runs out, they don

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