An observational comparative study of cost between branded medicines and generic medicines

Abstract

Background: Same drug can be sold for different prices under different brand names due to various reasons. Branded medicine is the original product that has been developed by a pharmaceutical company and generic medicine is a copy of the original branded product, marketed after the expiry date of the patent and hence supposed to be of low cost as compared to their branded versions. The objective was to compare the costs of various branded and generic medicine and to ascertain the rationality of emphasizing generic versus branded prescription. Methods: Prices of 50 commonly used branded and generic medicines available as both branded and generic forms and in same concentration, dosage form and combination were selected and the percentage difference in the mean cost of generic and branded medicines was calculated. Results: The mean cost of 26 generic medicines out of the selected 50 medicines was higher than their branded versions. Mean cost of 20 branded medicines was higher than generic ones, and cost of 4 medicines was approximately same. Percentage difference in the mean costs of branded and generic medicines varied from <10% to >70%. Conclusions: Most of the drugs available in the market have brand names whether they are branded or generic medicines. Hence, doctor should write a cheapest known brand with the name of the generic salt in bracket so that the patient can buy another if that brand is not available. Furthermore, the Drug Controller of India should release a website where every doctor should be able to fi nd the cheapest and approved drugs in the market.

Economic analysis of oral cephalosporins in the Indian market

“…[7][8][9][10][11][12][13] Prior to 2005, branded medicines were manufactured by multinational and large Indian pharmaceutical companies. 3 As a result, the drugs were usually expensive. The Amendment of Indian Patent Act in 2005 resulted in growth of generic pharmaceutical industries thus making drugs available at low cost.…”

“…It contains the same drug in the same quantity as the brand medicine and are manufactured confirming to international standards. 3 Emphasis should thus be on practising penetration pricing strategy with greater substitution for the branded medicines.…”

“…To avoid this, generic medicines offer an affordable substitution to the branded medicines. 3 Generic medicine is a copy of the original branded product, marketed after the expiry date of the patent or other exclusive rights. 3 Hence, they are supposed to be of low cost.…”

“…3 Generic medicine is a copy of the original branded product, marketed after the expiry date of the patent or other exclusive rights. 3 Hence, they are supposed to be of low cost. It contains the same drug in the same quantity as the brand medicine and are manufactured confirming to international standards.…”

“…3 This exuberant pricing is a major concern to both physician and patient. It also forms an important determinant factor influencing the compliance to treatment.…”