What is a generic drug?
A “generic” drug is manufactured with the exact same active ingredient and specifications as the “name brand” product but made by a manufacturer that does not have as high a profit markup on their price. Canada has some of the world’s strictest standards and guidelines for manufacturing “generic” drugs, this way, when a person takes a “generic” version of a “brand name” drug, that drug will offer the same treatment at a much lower price than the “brand name” equivalent.
A generic drug has only a chemical name, as opposed to a brand name. Every drug is given a generic name to describe its chemical makeup. A generic equivalent drug is a chemical copy of the original brand-name drug. There are also generic alternative drugs, which are not chemically identical but which treat the same disease or condition.
Generic drugs, which are also referred as generics, are a category of drugs which is manufactures and sold without the protection of patent. They are bioequivalent to drugs sold under brand names. As such they are identical in efficacy, safety, method of administration and dosage. Generic drugs are also identical in chemical composition to their branded counterparts. However, use of generic drugs results in a big saving for a consumer or hospital as they are substantially cheaper than the branded drugs. Even as generics approved by FDA match brands in terms of efficacy and other characteristics, they cost on an average 70% lower. By an estimate of the Congressional Budget Office, annual saving at retail pharmacies on account of the use of generic drugs ranges from $8 b to $10 b. Brands enjoy the protection of patent to recognize the innovator which has developed the formulation. Patents serve to allow the innovating manufacturer or company to earn back its expenditure on research and d
