Branded Drugs Vs Generic Drugs

 Before we tread upon the topic of branded drugs and generic drugs, let us first understand what they are and how they are different from each other.

A branded drug is a trade name and manufactured by a well known medical or pharmaceutical company which is protected by a patent. The medicines of this branded company cannot be produced or sold by other companies. A brand name for this medicine will be simpler than the generic name.

A generic drug or generic name of the drug is usually kept with the chemical ingredient or the medicinal composition present within the drug. They can be defined as a substitute of a branded drug satisfying the pharmacodynamic standards.

An active formula or ingredient of ‘Generic’ medication is identical to the active formula of the corresponding medicine. According to FDA, a generic drug is the same or equivalent to a branded drug in safety, strength, route of administration, quality, performance and use. Even if they are so similar to their branded counterparts, they are still sold cheaper from the branded price. Generic drugs are said to save costs of about 8-10 billion USD per year at retail pharmacies. More money is saved when hospitals use generic drugs instead of branded medicines since generic drugs are much more inexpensive than branded products.

Due to the marginally high price difference between branded and generic drugs people choose generics whether they buy their drugs online, or through the traditional retail way and many insurance companies actually support this route. Buying generic drugs in preference to branded drugs is not a bad idea at all, in fact most of the time it is a great way to save money and have medicines with the same values.
Why are branded drugs more expensive than generic drugs?

When we compare the price of both the generic and branded drugs, generic drugs are much cheaper. The prime reason for this is the enormous investment made by the brand manufacturing company from research and development till the drug reaches the consumer.

To understand how resources are spent on various processes, read the following:

  • Generic drug manufacturers do not invest like their branded counterparts
  • New medicines are made under exclusive rights, while generic are not.
  • Generic drug manufacturers do not have developmental expenses.
  • Half of all prescriptions are recommended with generic drugs
  • Since generic drug manufacturers do not have high expenses on various research or investmental costs, they give huge discounts.
  • Generic drug manufacturers don’t spend money to put their medicine on clinical trials.
  • Generic drug manufacturers don’t spend money on research since they have ample information from the research done by the brand   manufacturing company.
  • Brand companies invest hugely towards research of any new medicine so cost goes up.
  • Once government approves of a branded medicine, a lot of marketing expense is incurred towards print media, internet, television etc.

A brand name is chosen by the manufacturer based on the fact that it will be recognized, pronounced and remembered by health professionals as well as the consumer. The best example for this is the VIAGRA a popular brand name given by Pfizer to the generic medicine Sildenafil but people rarely use it, this is more popular as Viagra.

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Filed under: Medication by admin on Tue, July 6th, 2010
July 6, 2010

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