What are generic drugs?
The cheaper version of the brand name pharmaceuticals
A brief overview of the difference between brand name and generic pharmaceuticals.
Generic drugs are drugs which have an equivalent brand name counterpart, but are generally less expensive. Generic drugs have the same effectiveness and the same mode of action as their brand name equivalents, and they are equally safe to use. However, the appearance of generic drugs may differ from that of brand name drugs because of trademark regulations.
When a pharmaceutical company develops a drug, they can apply for a patent, which expires on average after twenty years. During the life of the patent, that pharmaceutical company holds the sole rights to manufacture the drug. However, once the patent expires, other manufacturers can apply to produce the drug.
Generic drugs are cheaper than brand name drugs, because generic pharmaceutical companies do not have to make the initial investment into research, testing, and applying for approval. As well, the brand name pharmaceutical company bears the brunt of marketing costs. However, perhaps the most important factor for the lower prices is that once a patent expires, multiple companies can begin to produce the drug, which drives down prices.
In addition to the expiration of a patent, generic drugs can also be produced in countries which do not recognize patents or in situations where the patent is invalid or where it is deemed that the production of the generic drug falls outside the boundaries of the patent. As well, not all pharmaceuticals are covered by patents.
Generic drugs play an important role in making health care more accessible, especially in developing countries. Because generic drugs bring down the costs of treatment, countries with limited health care budgets are able to treat a greater number of people. Adequate health treatment and the ability to provide medicines can have far-reaching consequences for a developing country’s stability, economy, infrastructure, and social structures among other things.
