Generic drugs are versions of brand-name medications that share active ingredients, strength, quality, safety, and intended use as their name-brand counterparts, but which are up to 85% cheaper.

Once a company develops a new drug, they are granted a patent under the Food and Drug Administration (FDA) to be the sole producer and seller of that medication. This is intended to help that company recover its losses from research and testing. After the patent expires, however, other drug companies are allowed to create generic versions of the newly developed medication. Generic drug manufacturers are not required to test the medication’s effects on animals or humans, which decreases the cost of production.
They also do not need to spend millions on research or marketing, since the original developer has already done the work. This cost reduction is reflected in the prices of the generic drugs, which are usually 80-85% cheaper than their name-brand counterparts. Even though generic brands are not required to do animal or clinical testing, they are still subject to strict guidelines, which means they’re just as safe as name-brand medications. Generic drug manufacturers must prove to the FDA that their version of the medication is identical to the name-brand in several ways, including:
- Active ingredients: The active ingredient refers to the ingredient that makes the drug “pharmaceutically active” — in other words, the ingredient that makes the drug work against the disease or condition it’s targeting.
- Strength
- Dosage form (tablet, capsule, or injection)
- Usage
- How the medication is taken/applied
- How the medication is absorbed by the body
- Shelf life
Drug manufacturers are subject to the FDA Generic Drugs Program standards for drug approval. This means that the manufacturer must submit evidence to the FDA that proves the generic medication’s active ingredient matches the name-brand version. The manufacturers must further pass plant inspections to show that their product is produced in similar quality to the name-brand. The FDA also monitors plants to ensure drug safety.
The main difference between generic and name-brand medications (besides the price tag) is the inactive ingredients. Inactive ingredients are fillers, coatings, or preservatives that help your body absorb the medication. While these ingredients are referred to as “inactive,” they, like any other ingredient in medication, can cause adverse reactions. But other than personal allergies, there is no significant difference between generic or name-brand medications. Generic medications may absorb into the body slightly faster or slower than name-brand versions, but the difference is small enough to be clinically acceptable by the FDA.

Due to trademark laws, generic drugs cannot look identical to the name-brand versions, even though their ingredients match. As a result, generic and name-brand medications may have different shapes, colors, or flavors. These changes do not affect the efficacy of generic medication.
There are a few ways to check whether an FDA-approved name-brand drug has a generic version:
- Drugs@FDA: Search for a name-brand medication and check the section called “Therapeutic Equivalents for [name-brand].” Medications labeled with ANDA are generic drugs.
- Orange Book: Search for a brand-name medication and find the active ingredient. Next, do another search for the active ingredient. Medications labeled with an “Appl No.” or “TE code” that begins with an A are FDA-approved generic drugs.

Generic drugs are a great way to save money on the medications you need. Most states allow pharmacists to substitute name-brand medications for cheaper generic alternatives, unless your doctor has specified to “dispense [the medication] as written,” or if the drug has a “narrow therapeutic window.” The narrow therapeutic window refers to the slight difference in absorption rates between generic and name-brand medications, which could result in side effects or loss in efficacy. If you have any questions or concerns about choosing generic medications over name-brand versions, speak with your doctor for more information.
In 2024, generic drugs saved patients and the U.S. healthcare system $467 billion.

























