Marketing strategy of pharma companies : Branded Vs Generic

Admin | 02 Mar 2021
Marketing strategy of pharma companies : Branded Vs Generic

How the marketing strategy of branded and generic pharmaceutical companies impact on selling price of medicines to the final user?

If the brand name medication is the only available version on the marketplace, then the cost of it is very high. The reason behind it is that the pharmaceutical company requires covering the cost associated with their research, development, as well as clinical trials of the medication and, in return, also make a profit. Often brand name medications are marketed as being better than alternative medications for treating disease and look attractive to patients as well as healthcare providers.

Generic versions of the medication also require approval from the FDA. But the pharmaceutical companies that will create generic medications will be allowed to sell them at a much less price than its branded counterpart because there were no costs associated with any research or clinical trials. There is also no limitation imposed on the production number of the generic versions of the medication. Thus often, many pharmaceutical companies are seen to produce generic medications of its branded counterpart. It will be creating competition in the marketplace and will also be driving prices lower.

How in India, medicines are divided into brand and generics?

When any pharmaceutical company either discovers or designs a potent new medicine, it will incur a notable cost for researching along with development as well as clinical trials. During this process, the pharmaceutical company will be obtaining a patent for the medicine, and once FDA approves it, the medicine is marketed to the public. Thus the medicine receives a brand name. They give an easily pronounceable as well as memorable name to their medicine for helping to sell it. Branded medications are promoted actively via doctors and chemists that add up to their retail prices.

Generic medication is comparable to its branded version in dosage form, strength administration, performance, quality as well as intended use. If any medication is manufactured as well as sold by its original name, then it is known to pure generics. Generic and brand medications are identical in their formulations but will differ in some other characteristics like shape, packaging, expiration date and time, storage conditions, and so on.

In the current scenario, generic medication is the best choice for India, but massive changes must take place in Indian peoples mentality for adopting this truth.