What is the Difference Between Generic and Name-Brand Drugs?

We hear the term almost every time we go to the pharmacy. The pharmacy tech will ask if we are okay with a generic drug. A lot of people have no idea what this means. They just know that their doctor gave them a prescription and they’re trying to fill it. However, there are some important differences between generic and name-brand drugs. At the same time, there are some reasons why generics are just as good for you as the real thing.

The reason a lot of pharmacies ask if you want a generic version of your medication is because it’s cheaper – a lot cheaper. If you have insurance, your provider is going to prefer that you get the generic version because it’s cheaper for them. The price difference between a generic drug and a name-brand can be just a few dollars. But in most cases, the price difference is a lot greater than you may think.

What Makes a Drug a Generic Drug?

Basically, generic drugs are almost the exact same thing as a name-brand drug. They have the same dosage, intended use, effects, and side effects as name-brand drugs. They are taken the exact same way as a name-brand drug. The main difference is that they are just a copy of the name brand drug – they have a different name.

Have you ever gone to the grocery store and wondered why they offer the same product in both the name-brand and a store brand? Generic drugs work the same way. They’re the cheaper variety of the real thing. They have the same safety warnings and the FDA has approved them the same way they approved the name-brand drug.

One common reason it’s called a generic drug is because patent on the name-brand drug hasn’t expired. For example. Several years ago, a very powerful and effective antibiotic called Zithromax came out. It’s a 5-day antibiotic that was found to work much better than most other antibiotics. When it first came out, it was very expensive. Doctors would only prescribe it if they knew your insurance covered it and if they knew you could afford it.

Zithromax was approved in 1988. A pharmaceutical company called Pfizer marketed the drug. In 2005 alone, the company made over $2-billion! Their patent on the drug was good until 2006. Until that time, no other company could make the drug. As soon as 2006 came, other companies started marketing cheaper versions of the drug under its generic name – azithromyacin. As soon as this happened, sales of Zithromax declined dramatically. Very few people actually prescribe the name-brand version of the drug today because it’s too expensive. Plus, they know the generic drug works just as well.

Should You Choose the Generic or Name-Brand Version?

If the only real difference between a generic and name-brand drug is the price, why would anyone choose the name-brand? You’ve gotta be asking yourself this question, right? Only a fool would pay more money for the same product. However, there are a few big differences between the two types of drugs.

• The generic drug may have up to a 20% difference in the active ingredient. The FDA allows them to provide only 80% as much of the active ingredient as the name-brand drug.
• The generic drug uses cheaper “fillers” than the name-brand drug. This can cause potency issues when it comes to the drug’s effectiveness.
• Some people have a negative reaction to the generic. This is very rare though.
• Believe it or not, many generic drugs are made by the exact same company that made the original drug! This gives the company a chance to make money on both the name-brand variety and the generic version.

So the differences between the two are few. It is really a matter of personal choice.

How Should You Make Your Decision?

Most people would say it makes sense to buy the cheaper drug. In some instances, your insurance company may only cover the generic version. If you ever ask the pharmacist if you can get the name-brand drug, she may tell you that it’ll cost you out-of-pocket.

You can also ask your doctor if he thinks you need the name-brand drug. Usually, he’ll put a note right on the prescription saying it’s okay for the pharmacist to replace the name-brand version of the drug with the generic. Or, he’ll write the script specifically for the generic version. It’s then up to your insurance company to decide which drug they’ll cover.