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Facts about generic medicines Facts about generic medicines

Image of a man called Gonzalo saying 'They meet the same standards.' Also has the message that ‘Generic medicines are an equal choice. They contain the same active ingredient.’

 

You may have heard the term ‘generic medicine’, but what is a generic medicine, what do they have in common with original brand medicines, and what else do you need to know? Here are the facts about generic medicines. 

What is a generic medicine?

The pharmaceutical company that first develops a medicine takes out a patent to ensure its exclusive right to produce and market it. After the patent for the original medicine expires, other manufacturers, or the company who made the original brand, can produce the medicine with the same active ingredient. These are called generic medicines. For certain medicines, there can be multiple brands of generic medicines.

Are they the same as the original brand of medicine?

Generic medicines have the same active ingredient as the original brand of medicine. The active ingredient is the chemical in the medicine that makes the medicine work — so medicines with the same active ingredient are expected to work in the same way (to produce the same benefits and the same potential side effects).

That doesn’t always mean they will look the same — generic medicines may be a different colour, a different shape, or come in tablet or capsule form. This is because the binders, colours and fillers in the medicine may be different, although the active ingredient is the same.

Are generic brands of prescription drugs as effective?

Generic medicines are manufactured to the same high quality Australian standard as the original brand medicine. The Australian regulatory authority, called the Therapeutic Goods Administration (TGA), applies the same standards to generic medicines as applied to original brand medicines. This ensures the effectiveness, safety and quality of all prescription medicines (also known as prescription drugs). So, you can trust that generic brands of prescription drugs meet the same high standards as the original brand of the drug.

Why can a generic brand of medicine be cheaper than the original brand?

In Australia, many medicines are subsidised by the government. The Australian Government pays the same amount for medicines that provide the same health outcomes. Most prescription drugs (in brand and generic version) will cost the same to the consumer. However, a pharmaceutical company may set a higher price for their brand than the subsidy provided by the government. In such cases, the difference between the subsidy and the price set by the company is passed on to the consumer — this means it is the patient who pays the gap. This additional cost, known as the brand premium, can range from $0.08 to $76.86 per script — most brand premiums range from $1.00 to $4.00. Depending on the medicine and the brand you are using, you may be able to save, on average, about $3.00 per prescription.

So, a generic medicine may be less expensive than the original brand if the original brand has a brand premium and the generic medicine does not (or it has a lower brand premium).

As generic medicines are as safe and effective as the original brand medicine, the use of generic medicines can benefit the community by improving the value for money spent in health care. Speak to your doctor or pharmacist about whether there is a suitable generic medicine for you.

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