Generic Vs. National Brand

One true difference exists between generic and brand name drugs in the United States: price. Brand name drugs do not offer any benefits over a generic version. Not all drugs, however are available in generic form.

Generic Drugs

• According to the United States Federal Drug Administration (FDA), generic drugs are "copies of brand name drugs and are the same as those brand name drugs in dosage form, safety, strength, route of administration, quality, performance characteristics and intended use." They must pass the same quality standards as their brand name equivalent. Due to trademark laws, generic drugs cannot look identical to the brand name competitor and may also have different inactive ingredients and flavors.

Brand Name Drugs

• Brand name drugs, such as Tylenol or Advil, are commercial names for different medications, such as acetaminophen and ibuprofen in this example. The drug name is in lower case and the brand-name is capitalized. Companies that produce brand name drugs invest heavily in research and marketing to bring a drug to the marketplace, so their costs are often significant compared to generic brand drug makers.

Misconceptions

• People often assume that generics must not work as effectively as a brand name drug, because they cost less. Expensive advertising, research and development and marketing play a key role in the higher cost of brand name drugs. Studies have shown that generic drugs work just as well as name brands.