Originally generic drug  houses were comparatively small firms with low maintenance expenses. Early generic drug companies frequently specialized in certain drugs and claimed to limit their clientele to particular customer groups that were given special member cards. In the 1930s, although the position of drug stores in the retail community had become firmly fixed, the serious economic depression throughout the U.S. acted as a strong impetus to all sorts of discount stores as declining sales forced many manufacturers and wholesalers to dispose of their inventories. Subsequently, state and federal fair trade laws were passed, prohibiting the sale of merchandise below a specific price contracted by manufacturer and retailer; this was called the fixed price. The early fair trade laws, with their many loopholes, were not strenuously enforced.

After World War II, discount drug stores continued to operate, meeting the demand for products that had been scarce during the war as well as satisfying the market created by expanded consumer income. Although various manufacturers filed suits to prevent discounting of their fixed prices, discount stores offered selections of goods, with and without brand-name labels, which had not been price-fixed by the manufacturer. They usually offered limited service or self-service, operated on low profit margins, and were located in less expensive areas. Because of the population shift to the suburbs beginning in the 1950s, established urban retail outlets faced loss of patronage. The public, having become accustomed to self-service as supermarkets and big drug stores grew in popularity, flocked to discount stores, which adopted similar methods of streamlining, convenience, and buying and selling in mass volume.

In the 1960s, chain discount store firms began to dominate the field. As expansion accelerated, discount drug stores became the leading outlet among general merchandise retailers. Traditional retailers, particularly chain operations (drugstores, department stores, and supermarkets), came into the discount business by building or acquiring discount stores of their own.

By the late 1960s many states had revoked their fair trade laws. Selling at discount prices has now become an accepted practice, and discount stores are a financially stable element in the retail structure. Discount stores are also successful in Canada and Western Europe.

Cipla is born

In 1935, Khwaja Abdul Hamied, the founder of Cipla,set up The Chemical, Industrial & Pharmaceutical Laboratories, which came to be popularly known as Cipla. He gave the company all his patent and proprietary formulas for several drugs and medicines, without charging any royalty. On August 17, 1935, Cipla was registered as a public limited company.

The search for suitable premises ended at 289, Bellasis Road (the present corporate office) where a small bungalow with a few rooms was taken on lease for 20 years.

Cipla was officially opened on September 22, 1937 when the first products were ready for the market. The Sunday Standard wrote: "The birth of Cipla which was launched into the world by Dr K A Hamied will be a red letter day in the annals of Bombay Industries. The first city in India can now boast of a concern, which will supersede all existing firms in the magnitude of its operations. India has lagged behind in the march of science but she is now awakening from her lethargy. The new company has mapped out an ambitious program and with it began the manufacturing and sales of generic Drugs.

It all started in India, not in the USA.  In India they needed drugs they could afford and they were not about to find them in the greedy US industry where PROFIT is all that matters.

In December 2008 I purchased a drug my wife needs called Lansoprazole 30mg (or Prevacid) for $0.44 each Per Pill, from an Indian Drug Store called www.aclepsa.com  .I called my favorite store, WalMart and they quoted me a price of $5.56 per Pill.

I think you can see why I am a big advocate of Indian drugs and reliable Indian drug stores. (Too compare the pill costs of 3 of the more reliable Indian drug Stores, Click here.)  Most likely the drug that WalMart sells came from India and in truth the ingredients probably cost around $0.11 per pill.  Keep in mind that WalMart is a discount store.  You can imagine what the other drug stores would have charged.