Let’s start with an example everyone can relate too. One of the biggest brand names in the world is Coke.
generic colas
Coke is a Brand Name
OK, so forget what you think of Coke, generic drugs are in general equivalent to the brand name product and they have to pass the same testing procedures.
When Are Generic Drugs Not the Same?
Some drugs are much more likely to cause side effects or not work at all when you get the wrong amount in the body. Some drugs are very fussy about the design of the tablet and will not absorb from the stomach well it it isn’t perfect. For those drugs, the brand name is sometimes preferred. At the bottom of this page there is a table of the drugs where brand vs generic may be more important.
Why Is the Cost Different
When a drug is first marketed, the drug company gets exclusive rights, so the brand name product (Example: Tylenol) is the only thing available. There is no competition, so the price is high. When the patent expires, other companies can make it under the generic name (example: acetaminophen) and as soon as the competition heats up, the price comes down. If you have prescription coverage, many times you will pay a much smaller copay for a generic version of a drug than for a brand name. In our discussion on Controlling Your Medication Costs we explain that you can often find an older drug with a generic version that works every bit a well as the new drug with the brand name for a fraction of the price or with a generic copay.
One trick of the drug companies is to introduce a new version of an old drug, such as a sustained release capsule. This is a new patent and if they can convince doctors it is better, then they keep making brand name profits. Many of these products are discussed under New Drugs/No Advantage or under the individual drug reviews.
Drugs Where Brand May Be Important
This table is being produced as we type.