Generic Drug

Definition

A medication that contains the same active ingredient, dosage form, strength, and route of administration as a brand-name drug, and has been demonstrated to be bioequivalent. Generic drugs can be marketed after the brand-name drug's patent and exclusivity periods expire, typically at 80-85% lower cost.

Related Terms

Mentioned in Guides

• Generic vs. Brand Name Drugs
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• Biosimilars vs. Generics
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• How Drug Prices Are Determined
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• Generic Drugs: Safety, Savings, and Myths
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• How Drug Patents Work
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• How to Compare Drug Prices
  Drug prices vary dramatically across pharmacies, chains, and online services. This practical guide shows you exactly how to compare drug …
• Understanding Drug Insurance Coverage
  Formularies, tiers, prior authorizations, step therapy, and deductibles: insurance coverage for prescription drugs is complicated. This guide decodes the system …
• The Future of Drug Pricing
  From the Inflation Reduction Act's Medicare negotiation authority to cell therapies priced at millions of dollars, the landscape of drug …