GENERIC DRUGS VS BRANDED ONES: A SIMPLE GUIDE

IS THIS A NEW INTERVENTION?

Not exactly. After seeking approval from the Centre, MCI had on September 21, 2016, notified that every physician should prescribe drugs with generic names legibly and preferably in capital letters

WHAT IS DIFFERENCE BETWEEN GENERIC & BRANDED DRUG?

When a company develops a new drug, it applies for a patent, which prohibits anyone else from making the drug for a fixed period. To recover the cost of research & development, firms price their drugs on the higher side. Once the patent expires, other manufacturers market their own versions of the drug. Since the manufacture of these generic drugs do not involve a repeat of the clinical trials, it costs less

WHAT’S THE PRICE DIFFERENCE?

Generic drugs are less expensive than their brand equivalents. Big companies also make generic name products at very competitive prices. In the US, the Food and Drug Administration says that the cost of a generic drug is 80% to 85% lower than a branded one

WHAT’S THE MARKET SIZE?

The total domestic branded drugs market is about Rs 1 lakh crore. The market for generic medicines is worth about Rs 10,000 crore. At least 90% of the domestic Indian pharmaceutical market consists of sale of branded products.

WHAT’S IS THE FLIP SIDE?

If the government institutes a rule that doctors must prescribe only generic names, a patient will, in most cases, still end up buying a branded drug because generic medicines have low margins and therefore unlikely to be stocked by the retail pharmacist

GENERIC: BENGAL SHOWED THE WAY

In 2013, Bengal became the first state to promote generic drugs. The government introduced generic medicines in state-run hospitals by opening fair price shops through public-private partnership If all prescriptions are generated in generic names, patients can opt for a cheaper version