Generic drugs are usually cheaper than brand-name drugs. Here’s how much you could save

Any Australian who has filled a prescription at the pharmacy will have been asked if they want a branded product or the generic version.

And with consumers looking to cut costs wherever they can, ordering the generic version could save you money.

Saving money by switching to “off” brands has allowed Queenslander Jace McGee, 23, to “afford better quality or more food for the week”.

And they are not the only ones.

So here’s the science behind generic drugs, how they compare, and how much you could save by making the switch.

What is a generic drug?

According to the Australian Therapeutic Goods Administration (TGA), a generic medicine is an additional brand of an existing medicine.

Laidley community pharmacist Emma Conway says contains the same active ingredient like the existing drug.

“That basically means they have the same milligrams of medicine,” Ms Conway tells the ABC.

This is what the TGA says:

“If you take the same dose of a generic drug as an existing drug, your body absorbs the same amount of the active ingredient over the same amount of time.”

This is known as bioequivalence.

Below are also some of the common misconceptions about generic medicines, according to the Pharmacy Guild of Australia.

What is the difference between generic and brand name medicine?

Mrs. Conway says it may be the “excipients or inactive ingredients of the medication that can vary”.

This includes things like: lactose, gluten, preservatives, sweeteners or colourings.

Inactive ingredients have a number of different functions, including providing color and flavor.

They may also change the size or shape of the medicine from the original.

For example, you may notice the difference in texture between generic paracetamol (rough) and Panadol (smooth and shiny).

If you are allergic to any of the above, check with your pharmacist or doctor before switching to the generic.

Are generic drugs safe?

yes.

The TGA says generic drugs can only be sold in Australia if they do find the same strict standards of quality, safety and effectiveness like the original brand.

“The generic medicine has to be tested by the TGA to have the same effectiveness, so it goes through quite strict scrutiny,” says Ms Conway.

Typically, after a pharmaceutical company researches, develops and commercializes a drug, it grants a patent that can last anywhere from five to 25 years.

Once it expires, another company can come in and produce the molecule.

Why do generic drugs cost less?

Generic drugs can cost less because the company no need to invest the money in research or development.

“All this research has been done by the start-up company,” says Ms Conway.

“The generic company knows the drug works and knows the exact dose needed, so they can go in and manufacture it without investing in discovery and commercialization.”

These costs are then reflected in the price consumers pay for the drug.

High prices push loyal brand-name buyers to generic drugs

The cost of living crisis has left Deenita Morton, 55, no choice but to switch to generic medicine.

“I will take Cymbalta, Lyrica, Nizac, Amitriptyline and Panadol Osteo,” Ms Morton said.

“I’m on a disability pension and rent prices have skyrocketed so I can’t afford to buy the others (brand name drugs).”

Deenita told ABC that when her Cymbalta prescription was filled recently, the generic cost $7 compared to $25 for the brand.

For a year, brand name Cymbalta costs $2,162 compared to $729.20 for the generic.

This is equivalent to aa total annual savings of $1,432.80.

For Jace, the medication they use the most off brand for is Zoloft.

“I usually buy Sertraline as it is around 50% cheaper and my GP who I see regularly has told me there is no difference in quality,” they said.

“I also tend to buy most over-the-counter medications like paracetamol and ibuprofen as a home brand at whatever grocery store I’m in at the time.”

Jace provided us with the price differences between the brand name and generic anxiety medication they take.

• The generic (Sertraline 50mg) costs $6.70
• The brand name (Zoloft 50mg) costs $13.99

Jace buys a box (30 tablets) about once or twice a month.

They would spend $80.40 per year on Sertraline compared to $167.88 on Zoloft if they bought the box once a month.

If they bought the box twice a month, it would cost $160.80 for generics compared to $335.76 for the brand.

Ms Conway says she is also starting to see a shift in consumer behaviour.

“Many patients who have been staunch buyers of brand-name drugs are now starting to switch to generics.

She provides a usage example blood pressure medication, perindopril.

For concession cardholder, perindopril (generic) is $7.70

For the Coversyl brand (10 mg), is one Additional $19.84 which is passed to the company in addition to the favorable price for a 60-day script.

“That fee comes from the drug company. It doesn’t go to the government.”

A spokesman for Nurofen told the ABC that while branded and non-branded medicines may have the same amount of active ingredient, the source of it may be different.

“In addition, the other ingredients that make up the tablet, capsule or suspension may also be different,” they said.

“These other ingredients play an important role and can affect the overall performance of the product.

“We are proud to offer innovative, high-quality, safe and effective pain relief to consumers.”

An overwhelming number of comments

The ABC asked Facebook and Instagram users if they had switched to generic drugs to save money.

Deenita and Jace weren’t the only people to share their story. Here’s what other respondents said:

“I have switched to generic drugs as they cost so much more. With the cost of living today, I have to be careful how I spend my money.

“My Yasmin birth control pill is about $70 or more. So I switched to the generic Isabelle version and it’s only $39.95 on some Pricelines. However, I’ve found that prices depend on where you go, so that I always check first and go where it’s cheapest.”

— Amber Curtis, 35, NSW

“I buy generic drugs for pretty much everything.

“The main drug I make a conscious effort to buy generic for is naproxen for the pain associated with my adenomyosis. I’m buying a new box about every six days.

“A brand-name box of Naproxen (Naprogesic) is $15.99 for 24 tablets, versus $7.95 to $10.95 for generics.”

The brand costs Lucy approximately $830 per year. While the generic costs between $413 and $569, depending on the price.

— Lucy, 25, NSW

It’s worth noting that many other respondents also said they’ve been buying generic drugs for cost-saving strategies since they first became available years ago.

Why do people choose brands?

Australian Psychological Association director Carly Dober says it comes down to familiarity.

“Even if someone has never used a brand before, being aware of it can be enough to create that positive association,” Ms Dober says.

“Pharmaceutical and medical brands spend millions of dollars to create these positive links and build brand loyalty.

“These marketing strategies are based on the idea that people want to pay a premium for their health, even in our ongoing cost-of-living crisis.”

Do pharmacies need to stock the generic counterpart?

According to the TGA, not all prescription medicines are available as generics.

“The original drug may be the only version available because the drug is relatively new to the market.”

Ms Conway also says pharmacies don’t need to stock any drugs, but the the patient must be given a choice.

“Part of our role in pharmacy is to make sure people have safe, effective and easy access to medicines,” he says.

“One of the caveats to this is that we can always order these drugs and we usually get them the next day.”

Are pharmacies legally required to offer you a choice between the two over the counter?

“Yes, definitely,” says Mrs. Conway.

But you don’t have to go generic if you don’t want to.

Here are some things to consider before buying the generic version of a drug:

• You may not want to switch brands because of the confusion, especially if you take several different medications
• Many medications contain fillers, binders, and other ingredients that can trigger an allergic reaction, including lactose, gluten, sugar, and preservatives.
• If you have been on the same prescribed brands for a long period of time, you may be advised to stay on.

Can I switch from a brand-name drug to a generic version?

In most cases, yes you can.

But it’s always better to do it talk to your pharmacist or doctor if you are thinking of switching.

They can take a look at any allergies, intolerances, dietary or religious requirements you may have and suggest an option that will work for you.

There are also some cases where you will not be offered an alternative brand, such as the drug warfarin.