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"Generic drugs" is a term that has been bandied about by the media quite a bit in recent years. You have probably heard the term used but may not understand what it actually means. The most common misperception about generics is that, because they are cheaper, they are somehow less safe or effective than their branded counterparts, but this is not the case. Generics are not "second class" drugs. In fact, aside from the brand name, there is usually no difference at all in how generics are processed and manufactured. Branded products, however, often have an advantage in that they have much more spent on advertising than generics do.

When we talk about generics we are referring to a medication that is identical, or the bioequivalent, to a brand name medication. The technical definition of a bioequivalent generic is that it delivers the same amount of the active ingredient to the site of action within a variable parameter of 20% more or less. That is to say that it is just as safe as the branded product, has the same strength and shares the same quality and performance characteristics as a branded product. The facilities that produce generics are just as modern as those that produce brand-name medications. They often need to be in order to meet the same required standards of manufacture. Despite being chemically identical to branded medications, the therapeutically equivalent generics are usually sold at substantial discounts and represent better value for money for the customer.

When a new drug is developed, it is protected by a patent and, sometimes, by other exclusivity agreements. While this patent is in effect, that company is the only one that can sell that medication, giving them a change to recoup the money spent on researching and advertising the product. The patent also protects the development, promotion and marketing of that drug. Any new drug has certain development cost that must be met by its developer. When the patent or any other exclusivity agreement expires, other manufacturers can apply for the rights to make generics of that particular drug. Because all of the efficiency and safety testing has already taken place, there is no need for the new manufacturer to have to pay for this research to be repeated. For this reason, the cost of developing and manufacturing a generic is reduced which translates into the product costing less for the consumer. Also, because generics result in greater competition, the price of these medications naturally falls. In fact, the same firms that produce the brand-name drugs are estimated to produce about 50% of the generics produced. It is a case of "if you can't beat them, join them". Because of the popularity of generics, pharmaceutical companies may now sell two version of the same drug - one that uses the expensive brand name and a generic that does not. These companies frequently make copies of their own brand-name products in the same facilities but market them without the brand name as cheaper generics.

The generic drug contains the same active ingredient as the original, or innovator, drug. It is identical in strength, dosage form and means of being administered, has the same intended use, is the bioequivalent of the innovator drug and is produced to the same manufacturing standard. It is often referred to by its chemical, or "generic", name. Many prescriptions are fulfilled using generics these days.

You may notice that a generic drug looks different to the branded product. The reason for this is that, in countries like the United States, the trademark laws prevent the generic from having exactly the same physical appearance as the brand-name drug. So while the active ingredients must be the same, there is no requirement for the generic to look the same. In fact, it may be legally required to look different. There is also plenty of scope for different flavours, shapes, sizes, colours, preservatives and inactive ingredients to be used. Even these inactive ingredients are subjected to specified requirements and testing.

Not every medication has a generic equivalent available. The patent protection for a brand-name drug may last 20 years from the date that the patent is submitted. So if the patent is still active, then no one can produce a generic version of this branded medication.