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Manufacturing Cost Analysis: Why Generic Drugs Are So Much Cheaper

Manufacturing Cost Analysis: Why Generic Drugs Are So Much Cheaper

  • Date: 8 Jan 2026
  • Categories:
    • Medications
  • Author: David Griffiths
  • 12 Comments

Generic drugs cost far less than brand-name versions because they avoid expensive R&D, rely on economies of scale, and operate under intense competition. This is why they make up 90% of U.S. prescriptions but only 16% of drug spending.

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