The main difference between generic and brand-name drugs is cost. On average, generic drugs are priced 45% lower than their brand-name equivalents.
GENERIC DRUGS ARE:
- Quality medicine
- Much lower in price than brand name drugs
- Used to fill over 40% of all prescriptions in Canada
- Saving Canadians almost $1 billion annually and that figure is growing every year
Health Canada approves both brand-name and generic drugs.
PRODUCTION
Generics and brands are subjected to the same rigorous production standards by the federal government.
INGREDIENTS
The active ingredients in generic and brand drugs must meet the same scientific norms and standards. The drugs are bioequivalent.
EFFECTIVENESS
Generic drugs work exactly the same as their brand counterparts.
SAFETY
The active ingredients in generic drugs are as pure, dissolve at the same rate and are absorbed in the same manner as their brand equivalents.
JOBS, INVESTMENT AND HEALTH CARE SAVINGS
The Canadian generic pharmaceutical industry employs more than 10,000 people, invests approximately $250 million annually in research and development, and saves Canadians about $1.5 billion annually in prescription drug costs.
FACTS ON GENERIC DRUGS
THE DIFFERENCE BETWEEN A BRAND NAME AND A GENERIC DRUG
What is a Brand-name drug?
What is a Generic drug?
Understanding Brand-name and Generic Drugs
As far as quality, purity, effectiveness and safety are concerned, there is no difference between generic drugs and their higher-priced brand name counterparts. In Canada , all drugs that are dispensed in Canadian pharmacies must be approved by the Federal Therapeutics Products Programme. In addition all medications, whether it is a brand-name drug or a generic drug, must comply with the same rigorous standards established by the Food and Drug Act.
The active ingredients in a branded drug and a generic drug must both adhere to the same scientific standards and norms as set by the Therapeutics Products Programme. Then you must ask what exactly is the difference between the two? It is in the price you will see a big difference. Generic drugs, on average, cost much less then their brand-name counterparts.
THE EFFECTIVENESS OF GENERIC DRUGS
You may find that the generic drug has a different name and looks a little different, but it works the same as the brand name drug you have been using. When applying to sell a generic equivalent of a brand name drug, the manufacturer must prove that the product is as safe and effective as the branded version. The manufacturer must also prove to the Provincial Ministries of Health that the active ingredients in the medicine are as pure, dissolve at the same rate, and are absorbed in the same manner as the original product.
THE QUALITY OF GENERIC DRUGS
In Canada , there is only one standard of drug quality. This means that generic products are the same quality and efficacy as branded drugs. Generic companies have sophisticated laboratories and state-of-the-art manufacturing facilities.
GETTING INFORMATION ON LOW COST GENERIC DRUGS
If you would like to save more money and are interested in substituting your drugs with generic drugs, you can ask any health professional for advice, primarily your doctor and your pharmacist. You may already be receiving a generic drug, in which case ordering from Canada will still save you money. If you would just like more information on the availability and pricing of generic drugs, you may call our customer service center toll free at 1-866-299-DRUG (3784). Please bear in mind that a generic drug your medication may be available in Canada even though it is not yet available in the U.S.
THE MANUFACTURER'S OF CANADA 'S GENERIC DRUGS
The generic manufacturing companies are independent Canadian companies who research, develop and manufacture drugs in Canada . They employ sophisticated scientific and advanced manufacturing technology to develop products, which include generic pharmaceuticals, fine chemicals, innovative medicines, non-prescription and private label medications.
AVAILABILITY AND AFFORDABILITY
Generic drugs are carried in retail pharmacies in Canada . Canadian hospitals and all provincial drug plans use them to help control skyrocketing drug costs. More than 40 percent of all prescriptions in Canada are filled with generic drugs, but a generic equivalent is not available for every brand name drug. Under the Canadian Patent Act, brand name companies have a lengthy period of patent protection to sell their products without generic competition.
UNDERSTANDING BRAND-NAME AND GENERIC DRUGS THINGS YOU SHOULD KNOW IF YOU ARE A PRESCRIPTION MEDICATION USER
WHAT IS A BRAND-NAME DRUG?
When a pharmaceutical company develops a new drug, it acquires a patent for that drug from a government patent office. This patent is critical for the pharmaceutical company as it will give the company the right to market and sell the newly developed drug for a specified amount of time without competition. The goal of a patent is to allow a pharmaceutical company to recover the costs of research and development and to make a profit. Generally, most countries permit the life of a patent to last 20 years from the time of registration.
The pharmaceutical company will also apply to “brand-name” or “trademark” the newly developed drug from a national trademark office on a country by country basis. After a careful process of evaluation to ensure that no other such trademarks exist, the trademark is registered to the pharmaceutical company. This means that the trademark is then the property of the pharmaceutical company. To identify a brand-name drug, you will usually see a “TM” or “®” beside the name of the drug when it is used in print.
WHAT IS A GENERIC DRUG?
After the patent period of usually 20 years, other pharmaceutical companies may then manufacture, market and sell the brand-name drug as a generic equivalent. The generic drug manufacturer must ensure that the generic drug is therapeutically equivalent to the brand-name drug by ensuring that it contains the same medicinal ingredient(s) as the brand-name drug. Both brand-name and generic drugs have to meet the same government standards before they are deemed safe to be marketed and sold to the public.
THE RELATIONSHIP BETWEEN GENERIC AND BRAND-NAME DRUGS
To view it simply, think of generic drugs as copies of brand-name drugs whose patents have expired. Also keep in mind that generic drugs will usually cost far less than it's brand-name counterpart as less time and effort are spent by the generic manufacturer in the initial research and development.
THE DIFFERNCE BETWEEN A GENERIC AND BRAND-NAME DRUG
The only difference to observe between a generic and brand-name drug is the price. Generic drugs, on average, will cost between 40%-50% less than it's brand-name counterpart.
THE DIFFERENCE BETWEEN A PATENT AND A TRADEMARK?
The life of a patent usually lasts only 20 years from the time of registration. Also, a patent only applies to a new discovery or invention.
A trademark, however, applies to the “name” given to any product and may last forever from the time of registration. Some good examples of a trademark are: Tylenol ®, Lipitor®, Premarin®, Vioxx®, Celebrex®, Kleenex®, etc. Bear in mind that the terms brand-name, trade name and trademark can all be used interchangeably. Also, a drug may have a different trademark depending on which country it is being marketed in.
It is possible for a company to loose their trade name if it is not registered. Take for example the case of Aspirin. This name is not a trademark in the US , and has become a common name for ASA. This means that any company may manufacture ASA and market it under the name of Aspirin without legal implications.
WHAT IS A GENERIC NAME?
In general, every pharmaceutical product will have three names: a chemical name, a generic name, and a brand-name. The chemical name describes the chemical compounds present in the product and is, in reality, only used by chemists. Since chemical names are usually long and complicated, the drug is given a standard, shorter generic name The chemical and generic names of the product are used internationally to specifically describe a drug. Manufacturers will usually give the drug a brand -name to identify that manufacturer's version of the product. In print, you may see only the generic name, the brand-name, or both.
Generic names for new compounds are assigned by an international organization to ensure not two products have the same generic name.
THE AVAILABLITY OF GENERIC DRUGS AS SUBSTITUTES
Keeping in mind patent laws, generic drugs are only available for those drugs whose patents have expired. Consider, for example, the following fact: out of the top 100 most-widely-prescribed prescription medications in Canada , only 25 of them have generic versions available. However, also keep in mind, that when a generic is available, the patient has the option of using the generic and saving between 40%-50% on the cost of the medication.
DO GENERIC DRUGS LOOK EXACTLY LIKE THEIR BRAND-NAME COUNTERPART?
On rare occasions, generic drugs will not look exactly like their brand-name equivalents. They may differ on the basis of size, shape and color, however, they will be equally effective and will deliver the same therapeutic effects.
COMPARABLE INGREDIENTS
The Heath Protection Branch of the Federal Government sets the high standards for the active ingredient(s) in both generic and brand-name drugs. Minor differences may occur in the non-medicinal, or aesthetic, ingredients which are responsible for the shape, color and texture of the product. Bear in mind that both brand-name and generic drug manufacturers have to select their non-medicinal ingredients from an approved list by the government, which is very limited in range anyway.
NON-PRESCRIPTION DRUGS (OTC) AND GENERIC EQUIVALENTS
The patents on most over-the-counter medications (drugs that do not require a prescription) have already expired, and therefore most of them have generic versions available. This category of pharmaceutical products includes vitamins, minerals, anti-diarrheals, laxatives, etc. You may note that generics of these types of products are usually marketed by large pharmacy chain stores as their “house” brands.
CAN GENERIC DRUGS BE COMPARED TO NO-NAME VERSIONS OF SODA POP?
Not at all. The reason for this difference can be attributed to issues pertaining to government requirements concerning no-name versions of soda pop, and those surrounding generic versions of brand-name drugs. In the pharmaceutical industry, all drugs, whether they are brand-name or generic, have to meet the same rigorous standards concerning ingredients, manufacturing processes and facilities, and must be approved by the government. When you compare this with a generic version of a soda pop, the government regulations are not as strict in terms of product similarity. The only thing a generic soda pop manufacturer must worry about is that their product tastes good, or better than the original. This is not the case in the pharmaceutical industry.
THE WIDE -SPREAD USAGE OF GENERIC DRUGS IN CANADA
In Canada , usage of generic drugs is widespread. Approximately 40% of all prescriptions that are dispensed are filled with generic drugs.
CAN A DRUG BE A GENERIC DRUG AND A BRAND-NAME DRUG AT THE SAME TIME?
Although it is very rare, it can happen. If a particular brand-name manufacturer wants to sell the same product at a reduced price, while maintaining the market share of the higher-priced brand-name, it will sell the identical drug under a different company's name, at the generic price. This scenario is only possible after the drug patent has expired, however.
THE EFFECT OF PURCHASING BRAND-NAME VS. GENERIC DRUGS ON EMPLOYEES COVERED BY A DRUG PLAN
Considering both generic and brand-name drugs deliver the same results, it should not matter which is filled under a drug plan. Using generic equivalents is an economical way to save money even if a person has prescription coverage as his/her portion of the payment will still be reduced. Generic drugs make economic sense and everyone benefits from their usage.
LOWEST COST ALTERNATIVE (LCA)
The Lowest Cost Alternative is the least expensive equivalent product available when a pharmacist fills a prescription using a generic product. Usually, after a drug's patent runs out, many generic drug manufacturers begin to sell the same drug, resulting in many options available for a generic equivalent.
