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Why does buying the drug for its active ingredient lower its price?

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Why does buying the drug for its active ingredient lower its price?

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The manufacturers of generic drugs do not need to invest in research to develop the drug, because the formulas are already defined for the reference drugs and serve as parameters for the production of the generics. A further reason to be taken into account concerns marketing. The manufacturers of generic drugs have no need to advertise the product, since the generic drug carries no brand name.

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