What are generic drugs? Well, in the pharmaceutical world generics have the popularity of being the cheaper version of brand name drugs. Generic drugs are drugs that provide the consumer with the same quality of care equivalent to that of brand-name drugs, at a much lower price. These drugs not only make medicines affordable but also have a low production cost. Unlike the manufacturer of the original brand drug, the manufacturer of the generic drug does not have to undergo extensive research, sacrifice billions of dollars or time to investigate methods for the invention of a particular drug. Instead, after the original drug's patent expires, the generic manufacturer can simply mass-produce the same bioequivalent drug and supply it to distributors at a cheaper price while still generating profits. Although generic drugs have a significantly low cost of production, their market prices have recently soared to a cost almost equivalent to that of brand-name drugs and this has become a growing concern among many consumers. The effects of the price surge on generic drugs have become evident in the pharmaceutical system and immediate action by the FDA is now needed to resolve this issue. One of the major growing concerns among consumers due to rising generic drug prices is insurance. Not surprisingly, this issue impacts both patients and individual pharmacies. According to the National Community Pharmacist Association, patients covered by Medicare and Medicaid “are decreasing their medications due to rising copayments” (Alexandria, NCPA). Patients who now have to pay premiums out of pocket are suddenly holding the insurance companies directly at fault instead of the ph...... middle of paper ...... and profit motivated pharmaceutical industries. As a result, Bloomberg economic data showed that the big three companies; Teva, Actais and Mylan generated increased revenues. These companies grew by 10%, from 34% in 2007 to a record 44% last year. Rising generic drug costs and malpractices have become a new norm in the pharmaceutical industry and will continue to worsen until federal regulations are strictly enforced. The bottom line is that the FDA should solve the problems associated with the rise of generic drugs by supporting new generic competitors. and sweeping away bad practices. Promoting growth and allowing greater competition in generic drug manufacturing has proven beneficial. It allows for a stable market from which consumers can afford to purchase generic drugs. Greater competition is the innovative standard for the free market economy.