Employees
Money Saving Tips
Generic Drugs vs. Brand-Name Drugs
What is a generic drug? A generic drug is an identical copy that is the same as a brand-name drug in dosage, safety, strength, how it is taken, quality, performance and intended use. Although generic drugs are chemically identical to their branded counterparts, they are typically sold at substantial discounts from the branded price. Generic drugs cost less because they do not require the same costly research, development and sales expenses associated with brand-name drugs.Â
Are generic drugs safe? The FDA requires that all drugs must be safe and effective. Since generics use the same active ingredients and are shown to work the same way in the body, they have the same risks and benefits as their brand-name counterparts. The FDA requires generic drugs to have the same quality, strength, purity and stability as brand-name drugs, therefore generic drugs work the same way in the body and in the same amount of time as brand-name drugs. Trademark laws of the United States do not allow a generic drug to look exactly like the brand-name drug even though the active ingredients are identical. Only colors, flavors and certain other inactive ingredients may be different.
Both brand-name and generic drug facilities must meet the same standards of good manufacturing practices. The FDA won’t permit drugs to be produced in substandard facilities. Inspections are performed each year to ensure standards are met. Generic firms have facilities comparable to brand-name firms. In fact, many brand-name firms make copies of their own or other brand-name drugs but sell them without the brand-name.
Do all generic drugs have a brand-name counterpart? Not every brand-name drug has a generic counterpart. This is because brand-name drugs are generally given patent protection for 20 years to the date of submission of the patent. This provides protection for the innovator who laid out the initial costs when developing the drug including research, development and marketing expenses. But, when the patent expires, other drug companies may introduce competitive generic versions, only after they have been thoroughly tested by the manufacturer and approved by the FDA.
Ask your physician or pharmacist if any of the prescription medications you are currently taking can be filled with a generic alternative. By using generic drugs, you can reduce your prescription drug costs while maintaining the same strength, dosage and quality as as the brand-name drug.Â
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