Generic pharmaceuticals are carefully manufactured formulations of the original, patented "brand name" products. Generic drugs contain the same active ingredients as the original "brand name" products and are just as safe and effective. They are usually dispensed under the "generic" (chemical) name of their active ingredient. In the US, the safety and efficacy of generics are regulated by the Food and Drug Administration (FDA). The quality, strength, and purity standards for FDA approval are uniform, whether they are for generic or for "brand name" drugs. Occasionally generic pharmaceuticals may be a slightly different size, shape, or color compared to their branded counterpart, but such differences have no impact on the safety or effectiveness of the generic product.

Here are some current facts about the U.S. generic pharmaceutical industry:

• $77 billion in sales value of branded drugs is subject to potential generic competition in the next  5 years.*
• 63% of all prescriptions dispensed in 2006 were for generic pharmaceuticals.^†
• Over 20% of every dollar spent on prescription drugs is for generics.^†
• The average price of a prescription for a branded pharmaceutical is $101.71^‡
• The average price of a prescription for a generic pharmaceutical is $29.82^‡
• More than a billion prescriptions are now filled with generics every year.^†

The Generic Pharmaceutical Association (GPhA) provides additional information about generic pharmaceuticals on its Web site.

*Source: Merrill Lynch.
^†Source: IMS Health.
^‡Source: National Association of Chain Drug Stores.