Generics Must Compete On Price, Not Safety

"Competition should always drive costs down—never quality," writes Pipes. NurPhoto via Getty Images

America’s generic drug market is one of our greatest health policy successes. Today, 91% of all prescriptions in the U.S. are filled with generics. That dominance saves patients and taxpayers hundreds of billions of dollars every year—and it also drives innovation. Drugmakers know their monopoly on a new treatment will be temporary—typically only enjoying about 12-14 years of effective market exclusivity—which pushes them to keep inventing rather than coasting on old pharmaceuticals.

This success rests on a simple but powerful principle: generics can compete on price, but never by sacrificing quality or safety. Patients and doctors trust generics because they are required to be clin