Generic Branding is used for generic drugs while Ethical branding is used for Ethical drugs, better say brand name drugs. Before we know the difference between Generic branding and Ethical Branding, let us understand the difference between Generic drugs and Ethical or brand name drugs.

Ethical Or Brand Name Drugs

Pharma companies to develop a new drug or medication, go through series of research, developments, experiments, clinical tests, to find a medication that will be effective and safe for use. During the development of a new medication, it is usually patent protected and, in that case, only the sponsors who have invested in the development of the drug has the sole right to sell the medicine in the market.

After its development, drug is tested and approved by FDA, with both a brand name and a generic name. The brand name of a new drug is given by the company that makes the drug while the generic name, on the other hand, is the name of the active ingredient of that drug.

The company that develops the drug receives an exclusivity period which is patent protected, during this period they have the sole right to sell the medicine in the market. During this period the company is the only seller of the new developed drug. Thus, company sets the price to a point where it can recover research and development costs along with other cost, like marketing while trying to make a profit. And hence brand name drugs are costly.

Generic Drugs

As soon as the patent-protected period provided to the developing company of eth new drug expires, other pharma companies can apply to the FDA to sell generic versions under the generic name of that medication. Because the generic manufacturer doesn’t have the research and development, marketing, promotion, and other costs of the brand manufacturer, they are able to sell the medication at lower cost.  

For the FDA to approve the manufacture and sell of generic medicines in the market, it requires that the generic medicines must have the same dosage form, safety, strength, route of administration, quality, and performance characteristics. Not only this, after the generic drugs are manufactured, they must pass the same quality standards as those of brand name drugs.

Brand Name Drugs vs Generic Drugs

Well, the most important difference between a brand name drug and a generic drug is in their costing. Generic drugs are generally low in cost or price than the brand name drugs because of a possible reason. Manufacture of generic drugs doesn’t require a series of development and research costing as like brand name drugs, and thus they are cheaper.

Many people have perceptions that generic drugs are cheap and so they are not as effective as Brand name drugs while this is not true. The FDA (U.S. Food and Drug Administration) approve the generic drugs only when they are found as safe and effective as brand-name drugs. So there's no truth in the myths that generic drugs are manufactured in poorer-quality facilities or are inferior in quality to brand-name drugs.

Generic drugs also differ the brand name drugs, in colors, flavors, or composition of inactive ingredients. Trademark laws in the United States do not allow the generic drugs to look exactly like the brand-name preparation, but the active ingredients must be the same in both preparations, ensuring that both have the same medicinal effects.

Ethical Branding 

Ethical pharma sectors use a network of medical representatives to promote their product in the market. They promote the products and convince retailers, physicians, and other medical professionals.

The medical representatives they choose are the brand ambassadors with excellent communication skills and convincing power. This kind of branding is purely based on the merits and usefulness of the product. No unethical practices are allowed or encouraged.

Generic Branding

In this kind of branding, the pharma companies directly sell their generic medicines to the retailers via their distribution channel. Sales representatives facilitate the process. However, there is no difference between the quality of products sold by generic branding or ethical branding. There is no difference in the route of administration as well.

As discussed above the generic medicines are low in cost compared to brand name drugs, thus they have better penetration in economically weaker sectors.

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