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What Are Generic Drugs?

By Kristi Waterworth – Oct 7, 2025 at 12:43AM | Fact-checked by Robin Hartill, CFP

Key Points

  • Generic drugs are cheaper copies of brand drugs, offering significant savings to patients.
  • Once a brand-name drug's patent expires, competitors can apply to make generic versions.
  • Generic manufacturers have slim margins but can quickly expand drug catalogs, influencing stock choice.
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