GMiA

This section contains questions commonly asked about generic medicines and the industry.

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Frequently asked questions

Are there any differences in the quality of the ingredients?
All ingredients – active or inactive – in any medicine, be it expensive brand or generic, must be evaluated for quality, safety and efficacy, and approved for sale by the TGA before introduction into the market, and regularly thereafter. All ingredients in a medicine are listed at the end of the Consumer Medicine Information (CMI) document that is available for every medicine. All medicine manufacturers must comply with the same globally recognised standards of Good Manufacturing Practice (GMP) for their medicines to be sold on the Australian market. The TGA won't permit medicines made in substandard facilities, and conducts both routine and unannounced inspections to ensure standards are met.
How much can I save?
As of December 2007, brand premiums ranged from $0.06 to $79.48, the average being around $2 per medicine. If you consider a few dollars difference on several medicines over the course of a year, the savings can be quite substantial . In fact, Australians pay approximately $100 million per annum in brand premiums (Source: PBPA Annual Report 2007) For example, if you are taking multiple medications, you may be able to save hundreds of dollars a year if you choose generic brands of your medicines.
How will my doctor feel if I take a generic medicine instead of the expensive brand?
Most doctors are happy for you to choose which brand of your medicine you wish to take. If, for some reason, the doctor wants you to take a specific brand, they will make this known to the pharmacist by filling in a particular section of the prescription.
If they are the same, why do they sometimes look or taste different?
Sometimes trademark laws do not allow the generic medicine to look or taste exactly like the originator brand, so there is a difference in colour, shape, size or flavour. Excipients that can make a medicine look or taste different are chosen because they do not affect the way the medicine works. Irrespective of any differences in excipients, the active ingredient must be the same.
What is a generic medicine?
A generic medicine is an equivalent of a brand medicine. The generic medicine is considered to be interchangeable with the brand, as it MUST contain the same active ingredient, in the same dose and strength with the same onset of action and must stay in the body for the same amount of time and work in the same way. The government, through the Therapeutic Goods Administration (TGA), applies the same strict regulatory standards to the generic medicine as are applied to the more expensive brand, guaranteeing its safety, efficacy and quality. As a rule, a generic medicine can only enter the market when the originator brand's patent has expired.
What is the best source of information about generic medicines?
Contact your doctor or pharmacist for information on generic medicines, or go to the links page on this website.
Why are branded medicines more expensive than generic medicines?
When a medicine is discovered, the company that develops it may apply for a patent. The patent provides the company with a competition-free period of up to 25 years, to allow it to recover research and development costs and profit from the discovery. Generic medicines are less expensive because the manufacturers don't have the initial investment costs of the developing company. As patents near expiration, generic manufacturers can apply to the Therapeutic Goods Administration (TGA) to market generic versions. Once generic medicines are approved for marketing, there is greater competition, which keeps the price down.
Why would I want to use a generic medicine?
First, because it may cost you less, which provides you better value for money. And second, it also provides value for money for our health system because of the way medicines are subsided by the Government.

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