What is the difference between generic and brand drugs? A generic drug is a copy of a “brand drug” that has the same chemical equivalent as the original brand drug. A pharmaceutical (“drug”) company will do many years of research and spend lots of money to create a new drug. This new drug is called a “brand” drug or “brand name” drug, and the pharmaceutical (“drug”) company that created it received a patent which protects the pharmaceutical (“drug”) company and keeps other pharmaceutical “drug” companies from manufacturing that new prescription drug.
When the brand name drug’s patent expires, this means other competing pharmaceutical “drug” companies can now produce the same active chemical content of the drug and produce it as a generic drug under a new name. Basically meaning they can copy the drug and produce it under their name now. The Food and Drug Administration (FDA), requires all drugs, both brand name and generic drugs to meet strict standards of safety, strength, effectiveness and purity. This provides protection to consumers when purchasing generic drugs. Also, the FDA requires that any generic drug has the same “therapeutic equivalency” as the original brand name drug.
Why are Generic Drugs Cheaper?
The pharmaceutical company producing the generic drug has to do very little marketing and advertising, so their costs are significantly less. Why is this? This is because the original pharmaceutical manufacturer spent a significant amount of money, typically in the millions marketing the original drug and creating “awareness” of it to everyone across the United States. Because of this the generic company has little costs, because the patient will just ask for the Generic equivalent of the brand drug at their doctor’s office or the pharmacy. Generic Drugs typically can cost from 30% less to as high as 80% less than the original brand name drug. The FDA has reported that almost 80% of approved brand name drugs have a Generic equivalent.
The generic version of the drug typically will be different in the areas of color, shape, test, inactive ingredients, preservatives and packaging, so it clearly looks different and even tastes different than the original brand name drug!
Utilizing generic drugs can save you a lot of money.
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