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What are generic drugs?
Why is there a difference in cost between branded and generic drugs?
Are generic drugs as safe and effective as branded drugs?
Do generics differ at all from brands?
Is the quality level the same?

What are generic drugs?

A generic drug is the brand equivalent, or bio-equivalent to a brand name drug in all of the following: dosage form, safety, strength, route of administration, quality, performance characteristics and intended use. Although generic drugs must be pharmacologically equivalent to their branded counterparts, they are typically sold at a lower price than the branded formulation.

Why is there a difference in cost between branded and generic drugs?

New drugs, like other new products, are typically developed under patent protection. The patent protects the original investment made in developing the drug by giving that company exclusive rights to sell and/or market the drug during the lifetime of the patent. When patents or other periods of exclusivity expire, manufacturers can make and sell the Health Canada approved generic versions. The Abbreviated New Drug Submission (ANDS) process does not require the drug sponsor to repeat costly animal and clinical research on ingredients or dosage forms already approved for safety and effectiveness.

Generic manufacturers have plenty of competition, but with lower R&D costs and considerably lower expenses in advertising and marketing, generic drugs are priced significantly lower than the branded drug, in most cases.

Are generic drugs as safe and effective as branded drugs?

Health Canada regulates all generic products under strict safety and efficacy guidelines, requiring the same testing as the branded product to ensure that the generic version is interchangeable with its branded counterpart.

For both brand name and generic drugs, Health Canada works with pharmaceutical companies to assure that all drugs marketed in Canada meet specifications for identity, strength, quality, purity and potency. In approving a generic drug product, Health Canada requires the same tests and procedures to assure that the generic is interchangeable with the brand name drug under all approved indications and conditions of use.

Do generics differ at all from brands?

Generics may differ slightly from brands as far as inactive ingredients are concerned. As long as bioequivalence is attained, Health Canada allows generics to use different inactive ingredients, such as fillers and dyes, than those used in the brand. These inactive ingredients however, do not affect the safety or performance of the generic formulation.

Is the quality level the same?

Health Canada continuously ensures that pharmaceutical companies test the quality of products currently on the market, and periodically inspects the manufacturing facilities of generic pharmaceutical companies for quality control. Health professionals and consumers have the assurance that Health Canada approved generic drugs have met the same rigid standards as the innovator or branded formulation. To gain Health Canada approval, a generic drug must meet all of the following criteria:

Contain "the same" active ingredients as the innovator drug, (inactive ingredients may vary);
Be the same in strength, dosage form, and route of administration;
Have the same use indications;
Be therapeutically equivalent;
Meet the requirements for identity, strength, purity, and quality and be manufactured under the same strict standards of Health Canada’s Good Manufacturing Practice regulations required for innovator drugs.