With the rise in cost of almost everything, medicines have not remained untouched either. But while we see a wide range of prices for most things, from the cheapest to the most expensive, that is not quite the case with medicines. Or at least, it does not seem that way.

Yes, there is a price range in medicines too if one becomes aware and chooses not to blindly follow the doctor’s prescription. There are cheaper alternatives available. But unlike in most markets where “cheap” implies low quality, this is not true for medicines. The cheaper ones have a name: generics.

And if you think generics are cheap because they don’t work then you are wrong. In fact, generics are what the medicine actually costs, without the added branding, marketing, or markups. They are the true price of the drug. So, if you are wondering why generics are the smarter and more affordable choice and how you can avoid paying more for the same treatment, read this blog till the end.

What are Branded and Generic Medicine and What is the Difference?

To understand the difference between branded and generic medicines, you first need to understand what a patent is. When a pharmaceutical company discovers a new medicine, it typically comes after nearly 20 years of intense research and development. To monetise that effort, the company files a patent. This patent gives it exclusive rights to manufacture and sell the drug, and no other manufacturer is allowed to do so. This exclusivity is meant to help the company recover its investment and turn a profit. But patents do not last forever. Once the 20-year patent period ends, the formula becomes public. At this point, any pharmaceutical company can manufacture and sell the same medicine. That’s when it becomes a generic medicine and the price drops, drastically.

Here is where things get interesting.

Even after the patent expires, some companies continue to sell the same drug under a brand name. Why? Because they invest heavily in advertising celebrity endorsements, commissioned doctors, and a fleet of medical representatives who actively promote the medicine. The branding adds perceived value, and the medicine becomes known as a branded drug, even though it is chemically identical to its generic counterpart.

So what is the difference?

Not much at least not where it counts. The real differences lie in superficial features like the colour, shape, taste, or packaging of the medicine. What is not different is the active ingredient, the dosage, or the therapeutic effect.

But the pricing? That’s where the gap widens.

Generic medicines can cost up to 80% less than branded ones. Yes, eighty. For the same treatment.

Think of it like this, it’s the difference between a man and a woman, different in physical traits, but equal in cognitive function. Generic and branded medicines may look different, but they work the same.

Why Are My Medicines So Expensive?

No, it is not just the marketing that makes your medicines expensive. To understand this, think about ordering food online. You are not just paying for the dish, you are also paying for app fees, delivery charges, platform commissions, and GST. All neatly bundled into one inflated total. Same is the case with medicines. When you buy a medicine, the price you pay includes a long, invisible chain of commissions. There is the manufacturer’s margin, followed by the marketing company’s cut, then the wholesaler’s commission, and finally the retail pharmacist’s markup. Each layer quietly adds cost and none of which has anything to do with the actual value or effectiveness of the medicine.

And yes, you are paying for all of it.

The medicine itself may be reasonably priced. But by the time it reaches your hands, it is gone through a value chain designed to extract profit at every stage. The result? A steep bill for something that could have cost you significantly less.

Why Generics Are the Smarter and Cheaper Choice

If branded and generic medicines have already been shown to differ mostly in name, price, and appearance, it is time to look at why generics are not just cheaper but smarter.

Let’s break it down by their similarities:

  1. Similar Bioavailability: Generic medicines are absorbed into the bloodstream at the same rate and to the same extent as their branded counterparts. That means they reach your system just as effectively.
  2. Similar Bioequivalence: When the bioavailability of a generic medicine matches that of a branded one, the two are considered bioequivalent. This means they deliver the same therapeutic impact measurably and reliably.
  3. Same Therapeutic Effect: Because both bioavailability and bioequivalence are aligned, the actual effect of the medicine on your body is the same, whether you take a branded pill or a generic one.
  4. Labeling and Approved Use: Generic and branded medicines with the same composition and strength are approved for the same indications. They often even have similar labeling and packaging, as required by drug regulators.
  5. Same Testing Protocol: Both branded and generic drugs must comply with WHO’s GMP (Good Manufacturing Practices). No drug branded or generic can enter the market without this certification. That means both are held to the same standards of purity, safety, and quality.
  6. Identical Dosage, Form, and Administration Route: From dosage strength and format (tablet, syrup, injection) to the route of administration, generics are a carbon copy of branded medicines. They are even legally and medically interchangeable.

So, with all of these aligned form, function, effect, and approval why pay more?

Why pick a heavily marketed, inflated branded medicine when a generic offers the same therapeutic value often at 80% less cost?

If you were offered hallmark-certified gold at a fraction of the price, would you still pay a premium for the same metal just with glossier packaging?

That is exactly what you’re doing when you skip the generic.

Conclusion

When generic medicines are equivalent, therapeutically identical, regulatorily approved, and manufactured under the same global standards then what exactly are we paying extra for?

Branding. Perception. A chain of commissions invisible to most consumers. In a country like India, where healthcare expenses often come directly out of pocket, this is not just a matter of financial literacy it is a matter of survival and access. A family spending ₹500 on a branded drug when a ₹100 generic could do the same job is not making a better health decision. It is making a costlier one. The smarter consumer knows this. And now, so do you.