Might sound like a loaded question, but hear me out.
In the Good ol’ USA, generic drugs are required by the FDA to have the exact same make up as the name brand drug (ie. Benadryl vs generic Diphenhydramine). I’d imagine this is also a requirement in other countries.
So how exactly do those companies turn a profit when a generic version of their drug can swoop in and undercut them?
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The same way that any other brand makes money: brand identity.
We’ve taught ourselves that the more expensive something is, the better it is. That’s the reason people pay a fortune for a pair of shoes with a red sole on them, or will favour one car over another when they’re made in the same factory with the same parts and the only real difference is the badge.
When someone invents a drug, they have a few years to sell it exclusively. They use this time to build up a brand identity before other companies can make it. After that, anyone can sell it, but they need to use the name of the drug rather than the brand name. So, by pushing the brand name when you have exclusive rights, you can shift people’s minds away from the actual content and on to the label.
There’s probably also a bit of a placebo effect here. If you give someone a drug (real or fake), the presentation can make a difference. They’ll feel a bigger impact if a nurse or doctor gives them the tablet than if they take it themselves, and a bigger impact still if they get an injection, say, even if the dosages are the exact same. We’re just more likely to respond to something if we believe in it more. So branded drugs actually can be better if people expect them to be better.
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