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Is a Generic Good
Enough?
Brand-name drugs are expensive because
many are still under patent, and thus only one company can make
each medication. Healthy competition re-enters the marketplace
when the patent expires and generic versions are produced. In the
last two years many major drugs became available as generics, including
the cholesterol drug simvastatin (brand name Zocor), the antidepressant
sertraline (Zoloft), and the sleeping pill zolpidem (Ambien). More
blockbuster brands will soon join the list. About two-thirds of
prescriptions in the U.S. are now for generic drugs. The shift
to generics has trimmed billions of dollars from the nation’s
rising health-care costs.
Insurers and government health plans
very strongly encourage or require the use of generics. Even if
your prescription form says a brand name, your pharmacist is likely
to give you the generic version if one is available—some
states even mandate this—unless your doctor specifies "brand
only," "do not substitute," or "dispense
as written." But most states also allow patients to request
that the pharmacist not substitute the generic.
Some people fear that switching to a
generic is risky. Here’s the lowdown.
How close is a generic to the original?
Generics are required by the FDA (as
well as Health Canada) to measure up to the original in every respect—dose,
safety, strength, efficacy, quality control, and purity. They must
act just as fast and meet the same rigorous standards. Indeed,
about half of all generics come from the same companies that make
the name brands. Generics can differ from the originals in shape,
color, and inactive ingredients, such as preservatives and fillers.
The FDA tests the bio-equivalence of
each generic in small groups of people to make sure that blood
levels of the active ingredient are within 20% of the brand-name
drug. FDA reviews of generic drugs have found they differed by
only about 3 or 4%, on average, from the brand names—about
the same difference seen among batches of brand-name drugs.
But do generics really work
as well as brand-name drugs?
Many studies have shown that generic
drugs are equivalent biologically and therapeutically to the brand
names. Some researchers, however, suggest there are small differences
for certain drugs—for instance, a few anti-seizure medications—which
may cause problems in some people. Furthermore, though the active
ingredients are exactly the same, the composition of the products
may differ. A generic tablet may be harder or softer, which could
affect how quickly it dissolves and is absorbed. This is rarely
of consequence. But the FDA has received reports of problems, for
instance, when some people switched from certain formulations of
the antidepressant Wellbutrin to the generic, buproprion, and a
2007 analysis by ConsumerLab.com suggested that at least one company’s
extended-release generic (buproprion XL 300) released the active
ingredient much faster than the original drug.
Can switching to a generic cause
new side effects?
It’s possible, but unlikely. Sometimes
switching from a brand name to a generic increases side effects,
perhaps because of different inactive ingredients. But that can
also happen if you switch from one brand-name drug to another,
or from one generic to another made by a different company.
Why are some generics still expensive?
During the first six months after their
release, the price may drop only 20 or 30%, since initially one
generic maker is granted exclusive marketing rights. As other generic
makers step in, the price can eventually drop 70 or 80% or even
more. If you’re paying out of pocket, shop around, since
prices can vary a lot among drugstores. But if you have insurance
that covers drugs, your generic co-pay will be low from the start.
One problem: generics may not save you money if the medication
becomes both generic and nonprescription, since insurance won’t
pay for over-the-counter drugs.
Why does it take so long for a generic
to come on the market?
The patent life is usually 20 years
from the time a drug company submits its request to the government.
Plus, companies have many ways to delay the expiration in order
to prevent generics from being marketed.
Aren’t newer prescription versions
better than the generics?
Not necessarily. As patents run out,
many pharmaceutical companies simply market a slightly different
version of the brand-name drug (sometimes called a "me-too
drug") and then aggressively advertise it as being better
than the old drug, now a generic. This is what happened, for instance,
when Claritin went generic as loratadine—its maker started
aggressively marketing a new version, Clarinex. Another example
is the ulcer drug omeprazole, a generic of Prilosec. The original
maker now pushes Nexium—an almost identical drug, but available
only by prescription, and much more costly. Usually the therapeutic
differences are minimal.
A few years ago a study by the National
Institute for Health Care Management Foundation found that two-thirds
of newly approved drugs were modified versions of existing drugs—not
new at all. This helps delay the threat of competition from generics.
It also stymies innovation, since instead of looking for new drugs,
companies look for new ways to market old ones.
Bottom line: There
are thousands of generic drugs on the market that are safe, effective,
and well tolerated. If you take a brand-name prescription medication,
ask your doctor or pharmacist if there is a generic (they should
tell you, in any case). If you take an over-the-counter drug, choose
the generic or store brand, if there is one. If your brand is not
available as a generic, talk to your doctor or pharmacist about
switching to a similar drug that is generic. If you do experience
problems or side effects with any drug, tell your doctor and/or
pharmacist. They should file a MedWatch report to the FDA, but
in case they do not, you should. To file your report by mail or
fax, call MedWatch at 800-332-1088 for the form. Or download it here.
The psychology of price
It’s human nature: most
people assume that something that costs more is better,
whether it’s a cosmetic, breakfast cereal, or medicine.
Thus, the low price of generic drugs can make people expect
less of them, and lower expectations can actually lead
to poorer results. The effect of price was seen in a recent
study in the Journal of the American Medical Association, which
compared an expensive placebo (dummy) pill to a cheap one.
Volunteers were given an electric shock and then what was
called a new kind of painkiller. Half were told the pill
cost $2.50, and half were told it was discounted to 10¢.
While 85% of the $2.50 group said the pill reduced the
pain, only 61% of the 10¢ group said so, for the exact
same pill. Other studies have also found that charging
more for something makes people value it more.
When it comes to drugs,
in particular, don’t let the price fool you. Some
of the best drugs we have—aspirin or penicillin,
for instance—are cheap and generic.
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UC Berkeley Wellness Letter, July 2008

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