A generic drug is a drug which is identical or equivalent to a brand name drug in dosage, safety, strength, route of administration, quality, performance characteristics and intended use but is usually cheaper than the branded version.

Generic drug can be legally produced for drugs where the patent has expired, or for drugs which have never held patents. The expiration of a patent removes the monopoly of the patent holder on drug sales licensing. Some countries are considering amending legislation to allow the manufacture of generic versions of AIDS drugs only for export to developing countries. This compromise protects the rights of patent holders in the home country while meeting the needs of developing countries for inexpensive medications.

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