Generic medicines tend to be cheaper than brand names. Here's how much you could save

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

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

Saving money by switching to "off" brands has allowed 23-year-old Queenslander Jace McGee to "afford better quality or more food for the week".

And they aren't the only one.

So, here's the science behind generic medication, how it compares, and how much you could save by making the switch.

What is a generic medicine?

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 it contains the same active ingredient as the existing medicine.

"This essentially means they have the same milligrams of medicine in them," Ms Conway tells the ABC.

Here's how the TGA puts it:

This is known as bioequivalence.

Here's also some of the common misconceptions about generic medicines, according to the Pharmacy Guild of Australia.

Facts

• Generic medicines contain the same active ingredient as the original brand
• Generic medicines always contain the same amount and type of active ingredient as the original brand
• All medicines sold in Australia, whether a generic or original brand, must meet the same quality standards set by the TGA
• Generic medicines, and their sites of manufacturer, are evaluated and approved by the government before they can be sold

Fiction

• A generic medicine is less expensive because it contains less active ingredient or meets lower standards
• The government has different rules or regulations for generic medicines
• Generic medicines may not work as well because they aren't required to undergo as much testing or human trials before sold

What's the difference between generic and brand-name medicine?

Ms Conway says it can be the "excipients or the inactive ingredients of the medication that can vary".

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

Inactive ingredients have a number of different functions, including providing colour and taste.

They can also change the size or shape of the medication from the original.

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

If you're allergic to any of the above, check with your pharmacist or doctor before making the switch to generic.

Are generic drugs safe?

Yes.

The TGA says generic medicines can only be sold in Australia if they meet the same strict standards of quality, safety and effectiveness as the original brand.

"The generic medicine has to be tested by the TGA to have the same effectiveness so it goes through quite stringent examination," Ms Conway says.

Typically, after a drug company researches, develops and markets a medication, they grant a patent which can be anywhere between five to 25 years.

After that expires, another company can come in and produce the molecule.

Why do generic medicines cost less?

Generic medicines can cost less because the company doesn't have to put the money into research or development.

"All that research has been done by the initial company," Ms Conway says.

"The generic company knows that the drug works and knows the exact dose needed, so they're able to come in and manufacture without investing into discovery and marketing."

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

Steep prices push loyal brand-name buyers towards generic medicine

The cost of living crisis has given 55-year-old Deenita Morton no choice but to switch to generic medicine.

"I take Cymbalta, Lyrica, Nizac, Amitriptyline and Panadol Osteo," Ms Morton said.

"I'm on a disability pension and rental prices have skyrocketed, so I can't afford to buy the other ones [brand-name medicines]".

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

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

This equates to a total yearly saving of $1,432.80.

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

"I usually buy Sertraline as it's around 50 per cent cheaper and my GP I see regularly has explained there's not a difference in quality at all," they said.

"I also usually buy most over the counter drugs such as paracetamol and ibuprofen as home brand from whatever grocery store I happen to be in at the time."

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

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

Jace buys one box (30 tablets) approximately once or twice per month.

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

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

Ms Conway says she's also starting to see a change in consumer behaviour.

"A lot of patients who have been hardcore brand-name medicine buyers are starting to change to generic now.

"That's mainly because the brand price premium that's been added onto the cost of their medicines is starting to get quite significant."

She provides an example using blood pressure medication, perindopril.

For a concession card holder, perindopril (generic) is $7.70.

For the brand-name Coversyl (10mg), it's an additional $19.84 that's passed through to the company on top of the concessional price for a 60-day script.

"That fee comes from the drug company. It doesn't go to the government."

A spokesperson from Nurofen told the ABC while branded and non-branded medicinal products may have the same amount of an active ingredient, the source of this 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 may affect the product's overall performance.

"We pride ourselves in delivering innovative, high quality, safe and effective pain relief to consumers."

Overwhelming number of comments

The ABC asked Facebook and Instagram users whether they had switched to generic medicine to save money.

Deenita and Jace weren't the only people to share their story. Here's what some other respondents had to say:

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

Why do people opt for brand names? 

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

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

"Pharmaceutical and medical brands spend millions of dollars to engineer those positive links and build brand loyalty.

"These marketing strategies rely on the insight that people want to pay a premium for their health, even in our sustained cost of living crisis."

Do pharmacies need to stock the generic counterpart?

According to the TGA, not every prescription medicine is available as a generic.

Ms Conway also says pharmacies don't need to stock either medicine, but the option needs to be given to the patient.

"Part of our role in the pharmacy is to make sure people have safe, effective, and easy access to medication," she says.

"One of the caveats to that is that we're always able to order in those medications and usually receive them the next day."

Are pharmacies legally required to give you a choice between the two at the counter?

"Yes, definitely," Ms Conway says.

But you don't have to opt for generic if you don't want to.

Here are a few things to consider before buying the generic version of a medication:

• You may not want to change brands due to confusion, especially if you take several different medications
• Many medicines contain fillers, binding agents and other ingredients that may trigger an allergic reaction e.g. lactose, gluten, sugar and preservatives
• If you've been on the same prescribed brands for a long period of time, you may be advised to stick with it

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

In most cases, yes you can.

But it's always best to speak with your pharmacist or doctor if you're considering changing.

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

There are also a few cases where you won't be offered an alternative brand, such as for the medication warfarin.