Review · Volume 7, Issue 3 · pp. 23–28
A Global Comparison Between Brand-Name and Generic Drugs
Karan Chawla1, Taraneh Tofighi2, Arnav Agarwal2, Jason Thomas3, Tapas Mondal4
- 1Honours Biology (Physiology Specialization), Faculty of Science, McMaster University, 1280 Main Street West, Hamilton, ON, Canada, L8S 4L8.
- 2Honours Bachelor of Health Sciences, Faculty of Health Sciences, McMaster University, 1280 Main Street West, Hamilton, ON, Canada, L8S 4L8.
- 3Pharmacy Services, Juravinski Cancer Center , 699 Concession Street, Hamilton, ON, Canada, L8V 5C2.
- 4Department of Pediatrics, McMaster Children’s Hospital, 1200 Main Street West, Hamilton, ON, Canada, L8N 3Z5.
Abstract
While the use of cheaper bioequivalent generic drugs over brand-name drugs has been widely discussed in literature, their market pricing and subsequent use is largely shaped by government policy-making as well as consumer and corporate decision-making. Analysis of literature shows that drug development and testing costs, degree of health care privatization, and pharmaceutical reimbursement all impact the profitability of brand-name drugs within and beyond their patent period. Furthermore, jurisdiction-specific government controls and policies influence the affordability and accessibility of both drug variants. This literature review focuses on: a) analyzing the policies and expenses associated with gaining approval for brand-name and generic drugs, and their subsequent influence on drug pricing; and b) comparing and contrasting government controls and policies between Canada, the United States, European nations, and developing countries.
Keywords: brand-name drugs; generic drugs; health policy; drug pricing; global comparison
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