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Generic vs Branded Medicine and Substitution of Medicine

Generic vs Branded Medicine and Substitution of Medicine


A patient’s guide by
Dr. Anil Prasad Bhatt, MD, DM (Nephrology, AIIMS)
Director – Nephrology and Kindey Transplant
Max Super Speciality Hospital, Noida.
Holy Family Hospital, New Delhi
And Renacare Center for Kindey Disease and Research.
 

The debate between generic and branded medicines is a critical topic for patients worldwide, including in India, where healthcare accessibility and affordability are significant concerns. Generic medicines are cost-effective alternatives to branded drugs, containing the same active ingredients, while branded medicines are marketed under a specific trademark by pharmaceutical companies. This guide explores the differences, benefits, challenges, and practices related to generic and branded medicines, with a focus on the Indian context and international standards. It aims to empower patients with knowledge to make informed decisions in consultation with healthcare providers.

Keywords

  • Generic Medicine
  • Branded Medicine
  • Drug Substitution
  • Bioequivalence
  • Indian Pharmaceutical Market
  • Affordable Healthcare
  • Regulatory Guidelines
  • World Health Organization (WHO)
  • Food and Drug Administration (FDA)
  • Jan Aushadhi Scheme

Generic vs Branded Medicine: Understanding the Basics

  1. Definition
    • Generic Medicine: These are drugs produced and marketed after the patent expiry of a branded drug. They are bioequivalent to the original drug, meaning they have the same active ingredient, dosage form, strength, and intended use (WHO, 2023).
    • Branded Medicine: These are patented drugs marketed by a pharmaceutical company under a specific brand name, often with higher pricing due to research, development, and marketing costs.
  2. Cost Difference
    • In India, generic medicines can be 30-80% cheaper than their branded counterparts due to the absence of marketing expenses and patent restrictions (National Pharmaceutical Pricing Authority, 2022).
    • Internationally, generics in the USA save patients and insurers approximately $1.5 trillion over the past decade (FDA, 2023).
  3. Quality and Safety
    • Both generic and branded medicines must meet stringent regulatory standards. In India, the Central Drugs Standard Control Organization (CDSCO) ensures quality, while globally, agencies like the FDA and WHO set benchmarks for bioequivalence and safety.

Indian Perspective

  1. Affordability and Accessibility
    • India, known as the “pharmacy of the world,” has a robust generic drug industry. The government promotes generic medicines through initiatives like the Pradhan Mantri BhartiyaJanaushadhiPariyojana (PMBJP), offering drugs at subsidized rates (e.g., paracetamol at ₹1 per tablet) (Department of Pharmaceuticals, 2024).
    • However, awareness among patients and even some doctors about generics remains low, leading to a preference for branded drugs.
  2. Regulatory Framework
    • The Drugs and Cosmetics Act, 1940, and its amendments regulate generic drug approval in India. Since 2017, the CDSCO mandates that generics meet bioequivalence standards, addressing earlier concerns about quality (CDSCO, 2017).
    • The Schedule H1 classification ensures that certain critical drugs are dispensed only with a prescription, reducing misuse.
  3. Challenges
    • Variability in quality among manufacturers, especially in the unorganized sector, has raised concerns.
    • Cultural trust in branded medicines persists, often driven by aggressive marketing by pharmaceutical companies.
  4. Substitution Practices
    • In India, pharmacists can substitute a branded drug with a generic only if authorized by the prescribing doctor or if the prescription specifies “substitutable.” However, this practice varies across states due to differing local regulations.

International Practices

  1. United States
    • The FDA allows generic substitution if the drug is deemed bioequivalent, and pharmacists can substitute unless the prescription is marked “dispense as written” (FDA, 2023).
    • Generic drugs account for 90% of prescriptions filled in the USA, highlighting widespread acceptance.
  2. European Union
    • The European Medicines Agency (EMA) ensures generics meet strict quality standards. Substitution policies vary by country, with some nations (e.g., Germany) encouraging generics through financial incentives (EMA, 2022).
  3. World Health Organization (WHO)
    • WHO advocates for generic medicines to improve global healthcare access, especially in low- and middle-income countries. It provides guidelines for prequalification of generics to ensure quality (WHO, 2023).
  4. Canada and Australia
    • Both countries have mandatory generic substitution policies unless contraindicated, with pharmacists informing patients about the switch (Health Canada, 2023; Therapeutic Goods Administration, 2022).

Benefits and Risks of Substitution

  1. Benefits
    • Cost Savings: Patients can save significantly, especially in chronic conditions like hypertension or diabetes.
    • Increased Access: Generic availability ensures medicines reach remote areas.
    • Encourages Competition: Lowers overall drug prices in the market.
  2. Risks
    • Quality Concerns: Poorly regulated generics may lack efficacy or cause side effects.
    • Patient Perception: Some patients report differences in effectiveness, often due to the “nocebo effect” rather than actual quality issues.
    • Allergic Reactions: Inactive ingredients (e.g., fillers) may differ, posing risks to sensitive individuals.

Patient Guidance

  1. Consult Your Doctor
    • Always discuss with your healthcare provider before switching to a generic. Ask about bioequivalence and suitability for your condition.
  2. Check Certifications
    • In India, look for drugs approved by CDSCO or available through PMBJP stores. Internationally, verify FDA or WHO prequalification.
  3. Monitor Effects
    • Report any unusual side effects to your doctor after switching medicines.
  4. Understand Prescriptions
    • Clarify if the prescription allows substitution. In India, terms like “generic substitutable” can guide pharmacists.

Conclusion

The choice between generic and branded medicines depends on individual needs, affordability, and trust in regulatory systems. In India, government initiatives like Jan Aushadhi are revolutionizing access to affordable healthcare, aligning with global trends toward generic use. However, patients must remain vigilant about quality and consult professionals to ensure safety. By understanding these dynamics, patients can navigate the healthcare system more effectively.

References

  1. Central Drugs Standard Control Organization (CDSCO). (2017). Guidelines on Approval of Generic Drugs. Ministry of Health and Family Welfare, Government of India.
  2. Department of Pharmaceuticals. (2024). Pradhan Mantri Bhartiya Janaushadhi Pariyojana: Annual Report 2023-24. Government of India.
  3. European Medicines Agency (EMA). (2022). Generic and Biosimilar Medicines: Questions and Answers. Retrieved from https://www.ema.europa.eu.
  4. Food and Drug Administration (FDA). (2023). Generic Drugs: Questions and Answers. Retrieved from https://www.fda.gov.
  5. Health Canada. (2023). Policy on Generic Drugs. Retrieved from https://www.canada.ca.
  6. National Pharmaceutical Pricing Authority (NPPA). (2022). Price Monitoring and Regulation of Drugs. Government of India.
  7. Therapeutic Goods Administration (TGA). (2022). Australian Guidelines on Generic Medicines. Retrieved from https://www.tga.gov.au.
  8. World Health Organization (WHO). (2023). WHO Prequalification of Medicines Programme. Retrieved from https://www.who.int.

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