branded-generic-scalesIndia’s the global  leader in the generic market with Indian drugs popular in Africa and other emerging markets. Some Indian pharmaceuticals have even made headway in the USA market.

So what are generic drugs?

They are drugs which have the same chemical composition as branded drugs are and sold under their chemical name. For example Paracetamol , a painkiller, is the generic name for branded drugs like  Crocin and Calpol. The drug market situation is a little different in India than the USA or other developed nations.  In the USA, when a new drug is launched only the company that holds the FDA patent are legally allowed to sell the drug , thus giving them market monopoly.  In India however there were no patent laws till 2005 which meant that anyone could replicate any drug in India without legal ramifications. This led to the trend of branded generic drugs which has 99.5% of the country’s generic drug share

Where are they available?

Generic drugs are sold everywhere including your local chemist. To buy them one simply has to ask for generic version of a branded drug though they don’t have them for all medicines. The department of pharmaceuticals of the government is responsible for promoting generic drugs but they haven’t done a very good job. To promote cheap drugs in 2008, the government had set up a scheme called Jan Ausadhi whose purpose was to set up generic drugstores around the country. Their initial plan was to set up 3000 stores but four years later only 300 of them exist. Here’s a list of all Jan Aushadhi stores in the country.

 

What is the price difference between generic drugs and popular branded drugs?

Note: All prices are taken from the 2010 comparative price list

We can clearly see that in some drugs the price difference is significant.

Used as

Generic drug

Price

Branded Drug

Price

Painkiller

Paracetamol    

Rs 2.45

Crocin

 

Rs 11

 

 

 

Calpol

Rs 10.70

 

Paracetamol syrup

Rs 9.00

Crocin  (syrup)

 

Rs 15

 

 

 

Febrex

Rs 20.50

 

Diclofenac sodium + paracetamol

 

Rs 4.4

Diclogesic 

Rs 19.40

Antibiotic

Amoxycilin

Rs 13.2

LMX

Rs 40

 

 

 

Remox

Rs 38.7

 

Azithromycin

Rs 41.8

Azee

Rs 107

 

 

 

Azithral

Rs 128.55

Anti-TB

Ethambutol           

Rs 14.8

Myambutol

Rs 15.3

Vitamins

Folic acid

Rs 2.8

Folivite

Rs 11.8

 

B-complex

Rs 1.8

Becosul

Rs 11.0

Cardiovascular (Blood Pressure) drug

Atenolol

Rs 7.0

Aten

Rs 23.8 

 

For the full list click here.

Note: The list compares prices of generic vs braded drugs from 2010. As we can see except for the anti-TB drug there’s a huge price difference.

Is there a difference in quality between generic drugs and branded ones?

This is a question which is hard to answer and polarises the entire medical fraternity – doctors, chemists, pharmaceutical reps, etc. Some of them say that they are as good as branded ones while others feel that they are of poorer quality. Doctors and chemists have the impression that they are less effective. In fact some doctors avoid prescribing generic drugs as far as possible and even go to the extent of handing out free samples of branded drugs to patients who can’t afford branded medicines. Doctors also aren’t aware about their availability due to lack of advertising and marketing. On the other hand a pharma rep we talked to was of the opinion that there is no difference in quality and a generic drug was as good as a branded one.

Why aren’t generic drugs more popular?

There are various reasons for their unpopularity. There is a distinct lack of awareness about them. Before the Satyamev Jayate episode only a handful of people knew them. Also since they are cheap, people who can afford branded drugs don’t buy them believing them to be of inferior quality. Chemists have to hand out exactly what’s written on the prescription and most doctors except in government hospitals don’t hand out generic drugs.

 An insider felt that private doctors would never hand out generic drugs because there are no kickbacks or incentives involved from pharma companies. According to a highly placed source in the MCI, the body has very little say in the doctor-pharma relationship. Most guidelines are blatantly ignored. The government or specifically the government’s Department of Pharmaceuticals is also to blame for the lack of awareness. The DoP has failed to do a good enough job of promoting generic drugs and the aforementioned failure to implement the Jan Ausadhi scheme reinforces that.

How to promote generic drugs

Generic drugs are the answer to better healthcare for all. India has one the highest out-of-pocket healthcare expenditure in the world and despite providing very cheap services (compared to rates of the countries like USA and UK) it’s still inaccessible to many due to poor purchasing power. The only way to promote generic drugs is to curb illicit medical practices. Though the MCI guidelines dictate that doctors should prescribe generic medicines as far as possible, very few private practitioners actually do it.  There’s a need to strengthen the Jan Ausadhi scheme and break down the doctor-big pharma nexus.  Moreover the MCI needs to provide more practical guidelines rather than an archaic set of rules which simply can’t be followed in the real world. 

How to open a generic drug store

Editor’s note: We received lots of queries in the comments section about opening a generic drug store. We talked to Bureau of Pharmaceutical PSUs of India (BPPI) advisor, PK Khanna, on how to open one and here’s what we found out.

The Jan Ausadhi stores are currently run on the premises of public hospitals (state and central) and the stores are either run by the hospital’s administration or some NGO. Currently, there is no way for any private company or individual to open a generic drug store. However, the BPPI does look to involve the private sector soon and could allow individuals to open them up and when they do decide to do so it’ll be put up on the Jan Ausadhi website. 

First Published: Sep 26, 2012 at 5:30 PM

Post Comment

    Taranath Amin July 1, 2012 at 10:39 am

    We had impress of Satyamev Jayate episode , we raised voice to use Generic Medicine in all medical stores in Mumbai.
    Jaago garhak Jaago

    Reply
    DB pathi June 25, 2012 at 5:06 pm

    I am a retired employee. I together with Dr.Chandra Bhushan an Orthopedic consultant in a reputed corporate Hospital maintaining a FREE MEDICAL consultancy services for the last one decade once in a week. About 50 to 60 patients are utilizing the services. The samples provided by company representatives are also distributed freely. Not even a single passe is charged. All other maintenance charges like Electricity charges, Dispensary cleaning area also borne by me and Dr. Now, I am interested to run a Generic Medical Shop in Secunderabad near the Free Clinic. Please let me know the details.
    Best regards to Mr. Ameer Jee

    Reply
    chandra kant sharma June 24, 2012 at 7:10 pm

    Dear sir,

    I am a dentist practising for twenty years.Though generic medicines are cheaper,I personally feel that they are inferior in quality compared to branded ones.However,if the MCI guidelines encourage generic medicines,then why it has not been successful till date.I suggest some steps:

    1. Periodic chemical analysis of generic medicines available ibn the market should be done by the government.

    2 The leading government empanelled hospitals/nursing homes should be directed to open generic medicine stores .The government/PSUs reimburse the medical bills of government /PSU employees referred to these hospitals.This will cut government/PSU expenses on costly branded medicines.Hospital chains like Fortis,Max Healthcare,Apollo and all other leading health care centres should be asked to strictly follow the guidelines.

    3. Generic medicines are not normally available in the chemist shops.The government will have to do make it available through chemists or through doctors themselves.

    4.The NGOs/recognised charitable institutions should be strictly asked to make available generic medicines only.

    Reply
    Sandeep June 24, 2012 at 1:01 am

    Why Amir Khan Promotes only Branded Drink which Substitutes Nimbu Pani,

    Branded Apparels, Television Stuff,

    He Can Promote Local Stuff?

    Think……

    Reply
    vishwanath R.Salian June 23, 2012 at 2:25 pm

    Namasthe Amirjee, Now I am a retired Accountant who worked in Pvt.Company’s for 35 yrs. without P.F.ESI or any other benefit. But I would like to thank u for the program of satyamev Jayate specially the knowledge on generic medicine You have given through your program will help the poor & middle class people fly. like us. Generic medicine facility should available not only in Rajasthan but throughout India. Then only all poor & middle class people will survive. thank u dear sir, I wish I want you to be the Prime Minister of India who will not afraid to take good decision for the people of India. This I want to see at that place before my death. May God Bless You. Go on doing the good work for the Nation I am proud to say at least one person is there who knows the problem of India’s poor people.No one is there out of 527 M.P’s. like You. Again I wish u good luck, good health and long life to save IndianPeople. Bye take care, GOD BLESS YOU.

    Reply
    Bhagavan P S June 22, 2012 at 8:40 pm

    Generic Vs Brands Vs competitive brands

    This is an issue taught and discussed under pharmaco-economics in pharmacy schools.

    Every pharmacist knows how to make the prescription affordable.

    There are always competitive brands and much competitive generic formulations in the market well known to the pharmacist.

    But the pharmacists hands are tied and he cannot exercise his option to dispense / suggest a competively priced identical formulation as it offends the ego of the doctor even though the same doctor buys for himself and prescribes to other patients the same alternate brand / generic.

    As per the Drugs & Cosmetics Act 1940 and the Rules made there on, dispensing a drug with a different name amounts to substitution and is not permitted.

    Here, the Doctor and even the enforcement officer adopt the view that dispensing a brand other than the one prescribed is asubstitution even though both are generically same. That means both these people protect the pharma industry than the common man!

    Our doctors dont accept the pharmacist’s service in its true sense that includes economizing patients prescription with his consent and wants the patient to bring back the dispensed drugs to ensure that the patient got what he had prescribed (ensure that his return if any is assured.)

    I have experienced, seen and observed on several innumerable ocassions during my service that Doctors condemn the generic drugs and praise the brands before the patients.

    The enforcement officers should change their view and should not object when a pharmacist dispenses a competitively priced brand / generic for an expensive brand prescribed,(with the consent of the patient) when the content is identical.

    Here again a question arises how trust worthy are our pharmacist?

    well, unlike the medical practice, the pharmacy practice is always under the surveilance of the enforcement authority and drugs movement is under documented and any complaint can be traced up to the manufacturing chemist from the local chemist.

    When such is the case, the suspicion on the pharmacist though is natural is unfounded.

    Reply
      Bhagavan p s June 23, 2012 at 3:22 pm

      In continuation to my own comment I wish to insert a small correction to the last sentence of mine:

      When such is the case, the suspicion on the pharmacist though is natural is unfounded. Please read this as “When such is the case, the suspicion on the pharmacist though is natural is unwarranted”. Thank you.

      Next, As regards the quality of the Generic Vs Brands Vs competitive brands the basic quality of the drug is the same and the added glamour in the form of shape, colour, packing doesnt make the product in any way better or superior.

      In India drugs manufacturing licenses are not given unless they comply with minimum standard prescribed in the Drugs & Cosmetics Act. Manufacturing standards and testing standards and procedures are same with all the manufacturers with respect the minimum standards. Hence it is only a myth to believe expensive ones are the best.

      Hence I appeal to all through this media, please ask the chemist for a generic or a competitive brand to the prescribed brand and use quietly .

      Remember, your doctor too does the same when he has to buy the drugs for his personal use or he requests the company representatives for free samples.

      As regards the Free samples from doctors, make sure he has properly preserved the drug, it is not date expired and the label is not faded or smudged.

      ” DRUGS WITH THE CHEMIST ARE REGULARLY SAMPLED AND TESTED’ where as”THE DOCTORS CLINIC HAS IMMUNITY AGAINST THE VISIT OF THE DRUGS INSPECTOR AND SAMPLING OF DRUGS FOR TESTING”

      Reply
    Harjot Singh June 21, 2012 at 4:59 pm

    i’m B-pharma. Wanna open a generic shop at Amritsar Punjab. So please tell me what i have to do for this.

    Reply
    SHARAD D DHAKRAS June 20, 2012 at 5:49 pm

    My wife is under medication with reputed hospital and prescribed EMBETA XR-25 tablets for last one year. Her stress test was having problem, hence this medication was given. What is the Generic Drug for this?

    Reply
    Affan khan June 15, 2012 at 5:19 pm

    I want to open this genric medical shop in my city sangamner I want help Indian people.
    P/z get me Information on this no.9764888889

    Reply
    Affan khan June 15, 2012 at 5:19 pm

    I want to open this genric medical shop in my city sangamner I want help Indian people.
    P/z get me Information on this no.9765888889

    Reply