Branded vs Generic

(Pic Courtesy: cp-frijolita.blogspot.com) 

After the episode on 'Healthcare in India' in 'Satyameva Jayate', I noticed that a lot of people have been showing interest towards opening a generic medicine store. If the initial zealousness does not fade away and some of these people actually open a store, it would be great.

However, with my limited understanding of the healthcare sector, I feel that branded drugs should not be totally 'penalized'. Branded drugs are the 'original' drugs. When I say original, I do not mean to suggest that others are fake. I mean branded drugs are the ones that were 'discovered'. 

Any new drug goes through a lengthy life cycle before it is considered a success/failure. Companies spend millions on drug discovery. Most experiments fail and some manage to pass through all the phases, including clinical trials and are then launched in the market. These drugs initially enjoy a patent, which essentially mean that no one is allowed to 'copy the formula' and launch the product. Companies try to get as much return as possible during this phase of 'monopoly'.

Then the patent expires and the dream run ends. As soon as the patent expires, several companies launch their own version and these are the 'generic' drugs. Now, these new drugs do not involve any expenditure on research and development, clinical trials, possible law suits etc. In fact, they do not have to do a lot of advertising and promotion as well since people already know about the molecule. Hence, their costs are low and they are able to quote a lower price. Something that a branded drug cannot do as they need to get the returns for their investment.

Generic or the low cost drugs are definitely good, especially in a country like mine where affordability becomes a huge concern. However, branded drugs should not be totally discouraged as it would hamper the chances of new drug discovery. I feel what needs to be done is to ensure that companies do not charge insane money for their drugs. Generics should be promoted but it should also be ensured that the drug discoverer is able to get adequate returns on investment. After all, that is the reward.