The landmark Drug Price Competition and Patent Term Restoration Act of 1984, commonly known as the Hatch-Waxman Act, created the framework for the remarkable success of the generic drug industry. As President Ronald Reagan said at the time, Hatch-Waxman provided “regulatory relief, increased competition, economy on government, and best of all, the American people will save money, and yet receive the best medicine that pharmaceutical science can provide.”
The generic industry has grown dramatically since those days. Generic drugs saved the U.S. health care system approximately $1.46 trillion over the past decade (2006-2015) with $227 billion in savings achieve in 2015 alone. That's more than a billion dollars in savings every other day. Generics today are 89% of prescriptions in the U.S. but only 27% of pharmaceutical expenditures. Generics are a proven long term health cost savings solution. Generic competition can increase access for millions of people while significantly lowering health costs.