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Generic medicines explained Generic medicines explained
When a pharmaceutical company first develops a new medicine, it takes out a patent to ensure that no other company may make and sell the medicine. It is only after the patent has expired that other companies may make copies of it. These copies are known as generic medicines.
Generic medicines are now more widely available than previously, because the patents of many medicines have expired recently.
Same active ingredient, different brand names
Prescription medicines have two names. The first is the name of the active ingredient. The second is the brand name. The active ingredient is the chemical that makes the medicine work as intended.
When a company produces a new medicine, it gives the active ingredient a name. It also gives the medicine a brand name, which is the name the company uses when promoting and selling the medicine.
When a company produces a generic version of a medicine, it gives the generic version a different brand name. However, the medicine always contains the same active ingredient as the original medicine.
For example, simvastatin is the active ingredient of a commonly used cholesterol-lowering medicine that was first sold under the brand name of Zocor, and is now available under many other brand names, including Lipex, Simvar 10, Simvastatin-DP, Terry White Simvastatin and Zimstat.
Different inactive ingredients
Medicines also contain inactive ingredients. For example, these ingredients hold tablets together, and give capsules a smooth coating so they are easier to swallow. In many cases, generic versions have different inactive ingredients from the original brand.
The different inactive ingredients have no effect on how the medicine works, so most people do not need to worry about them. They are only significant for people with extreme sensitivities or allergies to particular substances, such as gluten, lactose or preservatives, and people who avoid certain substances, such as pork, for personal, cultural or religious reasons. These people should check the inactive ingredients as they would any other medicine.
If your current medicines has a brand premium, using a
generic version will save you money.
Different inactive ingredients mean that the different brands often look different. For example, they may be a different colour, size and shape.
Same health benefits, safety and effectiveness
Before being approved, the manufacturer of a generic medicine must show that the medicine has the same amount of active ingredient as the original medicine. The company must also show that the medicine is manufactured using the same stringent quality and safety standards that apply to all medicines made in Australia. These requirements ensure that generic medicines always have the same health benefits, effectiveness and safety as the original medicine.
Generics may be cheaper
In Australia, most prescription medicines are subsidised and made available to consumers through the Pharmaceutical Benefits Scheme (PBS). The Government sets a standard price for each medicine on the PBS. For patients with a concession card, the standard price is $4.90. For other patients, the standard price varies up to a maximum of $30.70, depending on the medicine.
For most medicines, the original brand and the generic versions are the same price. However, sometimes, a company will charge a higher price than the standard price for its brand. If so, the consumer pays the difference between the standard price and the company price, and the difference is known as the brand premium. The average brand premium is about $3, but it may range from less than $1 to almost $80.
If your current medicine has a brand premium, using a generic version will save you money. There will always be at least one generic version of the medicine available at the standard price. The savings are most noticeable if you pay the concession rate for prescription medicines. For example, a brand premium of $4.00 nearly doubles the price paid by concession card holders from $4.90 to $8.90.
Knowing if your current medicine has a brand premium is easy if you have a concession card, because you will be charged more than the standard $4.90. If you do not have a concession card, it may be harder. The easiest way to find out if the price of your medicine includes a brand premium is to ask your pharmacist.
Changing brands
If you want to take advantage of cheaper generics, talk to your doctor or pharmacist about using a cheaper brand.
It is best to avoid changing brands too often because it can be confusing and can cause medicine mishaps. A typical mishap is taking two brands of the same medicine at the same time and hence taking a double dose. Once you have decided which brand you want to use, ask your pharmacist to give you that brand each time.
Getting to know your medicines will help avoid medicine mishaps. Learn to identify each of your medicines by its active ingredient. If your medicines are changed, look for the name of the active ingredient on each label to make sure that you are not taking two medicines with the same active ingredient.
Also, make sure you understand what each of your medicines is for, and which medicine the generic version replaces. If you have any questions, don't hesitate to ask your doctor or pharmacist.
Finding the name of the active ingredient
On the container
The most obvious name on the medicine's container and packaging will usually be the brand name. It will usually be in a larger and bolder print than any other writing on the packaging. The active ingredient will usually appear below the brand name in a smaller and lighter print.
On the pharmacy label
On the pharmacy label, the brand name usually appears first with the active ingredient below, as in the examples above. However, it is becoming increasingly common for the active ingredient to appear first and the brand name below. The order depends on your pharmacy.
The information in MedicinesTalk is not medical advice, so seek professional help before making any decisions based on this information.
This article was accurate and up-to-date when it was published. The evidence or context for this article might have changed since then.
MedicinesTalk is a free quarterly newsletter for consumers written by consumers about using medicines wisely. Subscribe to the hard copy version using our online ordering system, or write to MedicinesTalk, National Prescribing Service Limited, PO Box 1147, Strawberry Hills, NSW 2012.
