When getting a prescription filled at the chemist the pharmacist may ask you if you want to purchase a cheaper generic brand.

It can be confusing. What exactly is the difference? Is it as effective? Is it inferior to the more expensive brands?

There is nothing to fear. Generic brands contain just the same active ingredients and the same dosage as the more expensive brands – they are simply manufactured by a different company at a lower price.

But why is there a difference in price between brand and generic medications? It comes down to the manufacturing patent.

It costs millions of dollars to research, test and conduct clinical trials to establish the efficacy and safety of a new drug. It’s hardly surprising that the inventor will put a patent on it, to maximise their return on investment.

But when the patent expires, other companies can make and distribute their own version of the active ingredient. This generic version of the drug is available in pharmacies under labels such as “Chemist’s Own.” While the manufacturers have to prove to the Therapeutic Goods Administration that the drugs match the patented version in terms of dosage, strength and quality, they don’t have to perform clinical trials, so their costs are substantially reduced.

If your doctor recommends that the brand drug be used, he/she will specify it on your prescription. If they don’t, feel free to ask your pharmacist if there is a cheaper generic drug available.

Talk to your doctor or pharmacist if you have any questions. Need to find the closest pharmacist? Click here.