Generic medicines: Questions to ask your pharmacist (Part 1)

Is the generic any cheaper than the branded original medicine?

Many people believe that you pay more for the branded original of a particular medicine than for a copy, called a generic. In fact, market research shows that many people equate the term ‘generic’ with ‘a cheaper alternative’.¹

In many cases a generic is cheaper, but not always.

MYTH: Generic medicines are always cheaper for you

Generic medicines are NOT always cheaper than the branded original you know and trust.

93% of pharmacists say they always offer a generic alternative to a branded prescription.² So, unless you check, you could find yourself agreeing to substitute the tried and trusted brand prescribed by your doctor with a generic copy at no cost saving at all.

The consumer comfort zone

Many people are more comfortable sticking with the original brand of medicine than switching to a generic version, particularly for certain conditions and when the medicine is for children.³

"I believe in sticking to what I’ve been prescribed before. I know the doctor and I feel safe with his choice of medication." [consumer]⁴

If you are one of these people, it is particularly important that you know how much (if anything) you stand to save if you accept a generic alternative. If there’s no price benefit, there may be no reason to substitute the brand you know and trust.

So why the confusion when it comes to prices?

Some pharmaceutical companies apply a premium to the price of their original branded medicine when its patent expires and generic versions become available [see box]. Brand premiums applied to a typical medicine can be up to $5.00.⁵

However, in some cases, pharmaceutical companies decide not to apply a brand premium. Instead they choose to offer patients the branded medicine they are used to at no extra cost.⁶ If this is the case, then not only does the branded version not cost you any more than the generic, it is also reimbursed by the government (PBS) at the same price, so there’s no increased cost to the taxpayer.

The moral is always to ask about the true cost difference between the branded medicine your doctor has prescribed and the generic alternative – don’t just assume the generic is going to be cheaper.

What is …?

… an original branded medicine?

A branded medicine is the original version of that medicine, which has been through rigorous clinical testing over a number of years to prove its effectiveness and safety for a particular medical condition. A new medicine can have a ‘patent’ taken out on it.⁷

… a patent?

If a company that develops a particular medicine takes out a patent on it, only they have the right to produce and distribute that medicine for a period of time. In Australia, a patent usually lasts for 10+ years from when a medicine is first marketed.⁸

… a generic?

Once the patent on a medicine expires, other manufacturers can make and sell copies of that medicine. The active ingredient in these generic copies is the same as in the original branded version, but the medicine may look different and have a different name. To add to the complication, there may be many different generic versions of a particular medicine available.⁸

Always speak to your doctor about which medicines are suitable for you.

References

Research with patients to investigate preference for brand vs. an originator or non-originator generic. Market research prepared for Nycomed by Taverner Research, November 2009.
Identification of pricing/discounting strategies. Market research prepared for Nycomed by Taverner Research, July 2009.
National Prescribing Service Limited. Consumer reluctance to use generic medicines unwarranted [online]. 8 November 2007 [cited 4 January 2010]. Available from URL: http://www.nps.org.au/ news_and_media/ media_releases/ repository/ archive/ consumer_reluctance_to_use_generic_medicines_unwarranted
Hassali MA, Kong DCM, Stewart K. Generic medicines: Perceptions of consumers in Melbourne, Australia. Int J Pharm Pract. 2005; 13: 257-64.
National Prescribing Service Limited. What is a brand premium? [online]. 2009 [cited 4 January 2010]. Available from URL: http://www.nps.org.au/ consumers/ campaigns/ generic_medicines/ publications
NPS News 55: Generic Medicines: dealing with multiple brands [online]. 1 December 2007 [cited 4 January 2010]. Available from URL: http://www.nps.org.au/ health_professionals/ publications/ nps_news/ current/ generic_medicines_dealing_with_multiple_brands
Virtual Medical Centre. Generic Drugs and Brand Drugs (Generic Medicine and Branded Medicine) [online]. 28 April 2009 [cited 4 January 2010]. Available from URL: / treatments.asp?sid=147
NPS News 44: Generic medicines: same difference? [online]. February 2006 [cited 4 January 2010]. Available from URL: http://www.nps.org.au/ __data/ assets/ pdf_file/ 0020/ 15842/ news44.pdf