A generic drug is a medication created to be the same as an already marketed brand-name drug in dosage form, safety, strength, route of administration, quality, performance characteristics, and intended use.

According to the FDA, generic drugs are just as effective as their branded counterparts.

Generic medications typically cost about 80% to 85% less than the same brand-name drug. According to 1 study, generic drugs saved the U.S. healthcare system $1.67 trillion from 2007 to 2016.

The manufacturers of brand-name medications have to conduct tests, known as clinical trials, to prove that their drug is safe and works the way it’s supposed to. These tests are expensive, and manufacturers pass on some of these costs to the consumer.

Yes. Generic drugs are heavily regulated and go through a rigorous review process before they’re approved.

The FDA tests them to make sure they offer the same benefits as brand-name medications and that any different ingredients used in the generic drug are safe. They will also test how sturdy the drug’s container is, how long an unused drug will last before it breaks down, and whether the drug’s manufacturer can consistently and correctly make the drug. The FDA will only approve the drug if it meets all these requirements for safety.

After the medication is approved, the FDA will routinely inspect the manufacturing plant where the drug is made and monitor the drug for any safety concerns. If people taking a generic have bad reactions or side effects, the FDA will investigate, and the manufacturer may have to change how it makes the drug or how it’s used.