Emergence of the generic drugs market in U.S. post hatch waxman act, 1984

The healthcare treatment involves diagnosing the disease and prescribing a brand-name medicine. This practice has changed greatly after the Hatch Waxman Act in 1984 resulting in a faster availability of generic drugs in this market. Currently, U.S is a major contributor of generic drugs in the global market. The high government support for generic drugs in U.S.has resulted in an increase in number of prescriptions for generic drugs and a consequent decline in the sales ofthe expensive branded medicines. The use of generic drugs over the years has resulted in huge cumulative savings for U.S. crossing the 2 trillion $ value by 2016. The savings occur directly to patients who are the actual users and to insurance companies like Medicare and Medicaid where the patients are enrolled for the health protection. The savings thus accrued can then be utilized for the other welfare schemes of the U.S. citizens. The high success rate of generics usage in U.S is a major reason to understand this market and replicate this model in India, where generics usage by doctors is at a very initial stage.