Generic drugs are money savers. In fact the government has found that utilizing generic drugs would have translated into $265 billion worth of consumer savings in 2017. The question is why aren’t there more generic drugs available.
First of all the manufacturer of a generic must show that’s drug is bio equivalent to the brand name. This is a long and tedious process, and frequently the generic manufacturer can not get samples of the brand name drug to analyze and conduct tests with.
In other instances brand name manufacturers have offered financial inducements to generic manufacturers to wait to introduce their products. At least 142 brand name drugs were involved in these deals from 2005 to 2013 according to the Federal Trade Commission. The government has since investigated these deals and the Supreme Court has ruled that they are an antitrust violation.
The final reason for the relative scarcity of generic drugs is that tight profits margins have reduced the numbers of manufacturers in the generic industry.