What Are Generic Meds?

Generic medications utilize the same active ingredients and deliver the same medicinal properties as their brand name counterparts. And the generic versions are just as effective as the name brand medications. So the main difference between generic medications and brand name medications is price!

Name brand companies must pay for research, development, and branding. Typically, the FDA gives the new drug a patent for up to 17 years after the developing company invents it. During this time, the company makes back the initial cost of developing the drug. After the patent expires, then other companies are allowed to make the same drug. The other companies must also be approved by the FDA, and the drug must meet the same stringent requirements for quality as the name brand drug. Differences are only allowed in shape, color, packaging, and other superficial qualities. However, the drug is exactly the same and must contain the exact amount of the active component.

For example, there is a drug that was developed to treat type 2 diabetes called Glucophage. The company Bristol-Myers Squibb obtained the first FDA approval for the drug in 1994. The generic form of the drug, called metformin, is now being developed by several generic companies. Metformin is believed to be the most prescribed drug for treating type 2 diabetes and can be offered at a lesser cost.

Once generic companies are allowed to produce the medication, the price is much less because all the research and development has already been invested. The drug is already proven. So, ultimately, you save a good portion of the cost by choosing to buy from the generic company instead of the name brand company.