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Due to this mandatory period of exclusivity for many brand-name drugs (a period in which generic medicines cannot be sold), delay of generic drugs reaching the market is expected. The high cost of upfront research that brand-name products have to go through to ensure safety and efficacy largely account for the high discrepancy in pricing ...
Gen Z is most likely to prefer brand-name drugs—despite being an average 79% more expensive than their generic counterparts—according to a Tebra survey published in January 2025.
The FDA evaluated 2,070 studies conducted between 1996 and 2007 that compared the absorption of brand-name and generic drugs into a person's body. The average difference in absorption between the generic and the brand-name drug was 3.5 percent, comparable to the difference between two batches of a brand-name drug.
For example, under a 3-tier formulary, the first tier typically includes generic drugs with the lowest cost sharing (e.g., 10% coinsurance), the second includes preferred brand-name drugs with higher cost sharing (e.g., 25%), and the third includes non-preferred brand-name drugs with the highest cost-sharing (e.g., 40%). [7]
According to the FDA, most brand-name medications have a five-year protection period where they’re free from price competition from generic alternatives. But drug manufacturers can get ...
To understand why or when this happens and what it can mean for you, it is important to know about the different types of prescription medications. Brand name drugs are medications sold by a drug ...