Generic Medicines vs. Branded Medicines: A Conflict

The pharmaceutical industry plays an important role in the healthcare system of any country. India’s pharmaceutical industry is the third-largest in the world with an estimated value of $41 billion. Pharma companies manufacture generic medicines as well as branded medicines. We know and have consumed branded medicines, most of us do not even know what generic medicines are and how these medicines differ from branded medicines. Consumers in the United States are mostly prescribed generic medicines. According to a report, 90% of the medicines prescribed by doctors in the US are generic. A surprising fact is that more than one-third of these drugs are likely manufactured in India. The country’s ability to produce affordable generic drugs has led to its market reputation of being the “pharmacy of the world” as they say.

Generic medicines are up to 90% cheaper than branded or patented medicines. But, is the price the only factor of difference between generic and the latter variant of medicines. Do they really differ? Generic medicines are cheaper because the pharmaceutical companies who are into manufacturing it does not spend heavy expenses on their research and development, unlike branded medicine companies.

Generic medicines do not differ from the branded medicines except in their prices. Generic drugs are as good as branded as far as the quality and efficacy are concerned. The reason why our doctors do not prescribe and chemists do not consider dispensing generic medicines is that they are lower in price, so the revenue earned by everyone in the supply chain is low. But this model is not building our healthcare system better, moreover, it is preying upon people’s savings.

Indian pharmaceutical sector which is currently valued at the US $41 billion is expected to grow to a $65 billion industry by 2024. We can’t boast about such developments unless the poorest of the poor in our country are able to afford medicines.

Surprisingly the Indian pharmaceuticals market is dominated hugely by generic drugs which constitute nearly 70 percent of the market, whereas over-the-counter (OTC) medicines and patented drugs make up to 21 percent and 9 percent, respectively. The fact that we are exporting most of our generic medicines to other countries but promoting branded drugs in our own country is unfathomable.

Generic medicines are easily available online as well as over the counter, one such initiative we have come across is Zeelab Pharmacy (www.zeelabpharmacy.com) which is the largest pharmacy chain in India. It is selling generic medicines that are up to 90% cheaper than the market price of branded medicines.

We don’t see 70% of generic medicines most often, but most of the branded medicines are promoted in the market by our doctors and every involved in the supply chain. The medicines that doctors prescribe to people suffering from various mild, as well as chronic ailments, are all branded. There are real-life stories where people suffering from various diseases are left in trauma and a feeling that they were being exploited after they exhaust their money on expensive branded medicines.

Keeping in mind our current economic and healthcare scenario, this is high time to ponder upon the betterment of our healthcare system. Switching to generic medicines can bring a revolution in our country’s medicine market. The bottom line is, all the stakeholders of our health industry if work together, can bring transformation to our healthcare system.

The Key Differences Between Generic and Branded Medicines

While generic medicines and branded medicines may look different on the shelf, the most significant difference lies in their pricing. Here’s a breakdown of the key differences:

• Cost: Generic medicines are usually 50% to 90% cheaper than branded medicines due to the absence of research and development costs.
• Ingredients: Generic medicines contain the same active ingredients in the same dosages as branded medicines.
• Appearance: Generic medicines may differ in color, shape, or packaging, but the active ingredient and dosage remain the same.
• Quality and Efficacy: Both generic and branded medicines are held to the same safety and quality standards set by regulatory bodies such as the FDA or India's CDSCO.

Why Are Generic Medicines More Affordable?

Generic medicines are less expensive because they don't require the extensive research, development, and marketing expenses that branded medicines do. When a pharmaceutical company develops a new drug, it invests heavily in clinical trials, patents, and advertising. Once the patent expires, other companies can produce and sell the drug without these costs, allowing them to sell the medication at a lower price. This makes generic medicines a cost-effective option for both consumers and healthcare systems.

Are Generic Medicines as Effective as Branded Medicines?

Yes, generic medicines are just as effective as their branded counterparts. The key difference between generic and branded medicines lies in their pricing and branding, not their quality or effectiveness. Generic medicines must meet the same regulatory standards for safety, efficacy, and quality as branded medicines. As a result, you can expect the same therapeutic benefits from generic medicines as you would from branded medicines.

The Benefits of Switching to Generic Medicines

There are several benefits to choosing generic medicines over branded alternatives:

• Cost Savings: The most obvious advantage is the significant cost savings. Generic medicines can save patients and healthcare systems a substantial amount of money.
• Equal Effectiveness: Since generic medicines contain the same active ingredients and are held to the same standards, they are just as effective as branded drugs.
• Increased Access: Because they are more affordable, generic medicines make healthcare more accessible, especially for low-income patients.
• Encouraging Innovation: By using generic medicines, patients help reduce healthcare costs, allowing more resources to be allocated to new treatments and innovations.

How Generic Medicines Are Benefiting India’s Healthcare System

India has earned the title of the “pharmacy of the world” due to its massive generic drug industry. With more than 70% of the country's pharmaceutical market made up of generics, India is leading the way in providing affordable medicines to millions. This helps not only the local population but also millions of people across the globe who depend on Indian-made generic medicines. By promoting the use of generics, India is playing a crucial role in making healthcare more affordable worldwide.