Brand vs. Generic Drugs: What’s the Difference?
One common question patients ask pharmacists is to explain the difference between brand and generic medications. Many brand-name drugs often have generic versions. In most cases, generics cost less. This makes some patients wonder how generics are different. Many want to know if they work the same way as brand-name drugs. It can be helpful to know how generics are made and priced.
Producing generics
A company will make a brand-name drug using a patented formula for a number of years. Once the patent expires, other companies may make a generic version. This can only happen after thorough review by the U.S. Food and Drug Administration (FDA).
FDA-approved generics must have the same active ingredient(s) as the brand-name versions. This means a generic drug has the same clinical benefits as a brand-name drug. A generic must be the same as the brand-name version in other ways:
• Approved use
• Dose and strength
• Dosage form (e.g., pill, shot, cream)
• Labeling
• Route of administration (e.g., oral, injection, topical)
• Safety and effectiveness
• Stability and quality
Some FDA-approved generics might use different inactive ingredients. They might not look like the brand-name versions. These differences are allowed, as long as they do not affect how the drugs work.
Lower costs
Generics can cost up to 85% less than brand-name drugs. This does not mean they are less effective. It just means they cost less to manufacture.
Companies making new, brand-name drugs must complete several steps that incur up-front costs. They must test and prove a drug is safe. They have to show a drug is effective. Also, they need to market each new drug.
Once patented, a drug does not need the same tests and marketing. This means a company can make a generic version with fewer costs. Sometimes, more than one company makes the same generic. The competition can drive prices down for patients.
Switching to save
FDA-approved generics have the same risks and benefits as the brand-name versions. This means using a generic should not affect your treatment. In some cases, you might automatically get a generic if your prescription does not require the brand-name drug. In other cases, it is possible to switch if you ask. If you are concerned about the price of a drug, ask your healthcare provider or pharmacist about other options. They might suggest a generic or another similar drug. These could help you stay on track with treatment at a lower cost.
Sources
Generic drug facts. U.S. Food and Drug Administration website. Updated November 1, 2021. Accessed December 9, 2022. https://www.fda.gov/drugs/generic-drugs/generic-drug-facts
Generic drugs: questions and answers. U.S. Food and Drug Administration website. Updated March 16, 2021. Accessed December 9, 2022.
https://www.fda.gov/drugs/questions-answers/generic-drugs-questions-answers
Meadows M. Saving money on prescription drugs. FDA Consumer. Published September/October 2005. Updated May 4, 2016. Accessed December 9, 2022. https://www.fda.gov/drugs/resources-you-drugs/saving-money-prescription-drugs
Song Y, Barthold D. The effects of state-level pharmacist regulations on generic substitution of prescription drugs. Health Econ. 2018;27(11):1717-1737. doi:10.1002/hec.3796
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