generic competition

Generic competition occurs when multiple companies produce the same medication after the original patent expires. These generic versions are typically cheaper but contain the same active ingredients and provide the same medical benefits. The introduction of generics increases market competition, which often leads to lower prices for consumers. This process helps make essential medicines more affordable and accessible, while still allowing the original developer to earn revenue during the patent period. Overall, generic competition plays a vital role in balancing innovation incentives with public health needs by encouraging competition once patents expire.