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Generic vs branded medicine

Same active molecule, different name and usually a very different price.

A branded medicine is sold under a company's trade name; a generic contains the same active molecule at the same strength, sold under the molecule name or a different brand. Both must meet the same regulatory standard for the molecule they contain.

The commercial difference at the counter is margin and price. Generic versions frequently carry a much lower MRP, and the gap between a branded pack and its generic equivalent can be several multiples. Patients increasingly ask for the cheaper option by name.

Substitution is a clinical decision, not a retail one. A pharmacist may only substitute where permitted, and the prescriber's intent governs. What the shop can do is know which alternatives exist and what they cost, so the conversation is informed rather than guessed.

Salt composition is the key that links them: two packs with different names and the same composition and strength are the ones worth comparing.

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Related terms

Salt compositionThe active molecule or molecules in a pack, with strengths. MRP (Maximum Retail Price)The maximum price at which a pack may be sold to a patient, inclusive of all taxes. PTR (Price to Retailer)The price a stockist charges a retail pharmacy for a pack, quoted exclusive of GST. DPCO (Drugs Prices Control Order)The order under which the government fixes ceiling prices for scheduled medicines.

All terms

Batch numberBreakage and damageCDSCOCGST, SGST and IGSTCold chainCredit noteDPCO (Drugs Prices Control Order)Drug licence (Form 20 / Form 21)Expiry returnFEFO (First Expiry First Out)Generic vs branded medicineGSTR-1GSTR-3BHSN codeInput tax credit (ITC)Loose sale (cut strip)MRP (Maximum Retail Price)Narcotic registerNear-expiry stockNPPAPack factor (units per pack)Pharmacist registrationPTR (Price to Retailer)PTS (Price to Stockist)Purchase invoiceRed-border warning labelReorder levelRetail vs wholesale drug licenceReturn to vendor (RTV)Rule 65Rx symbolSalt compositionSchedule HSchedule H1Schedule XScheme goods (free goods)Shortbook (short book)Stock rotationStockist

This glossary is a practical reference for Indian retail pharmacy, not legal, tax or clinical advice. Requirements under the Drugs & Cosmetics Rules are enforced by state drug control authorities and vary; GST treatment should be confirmed with your CA. Verify anything you intend to rely on against the current notified position. As of August 2026.