What is the difference between brand-name and generic drugs?

Brand-name drugs are marketed under a proprietary name that is created and owned by the company that develops the drug. This name is often used in advertising and is designed to stand out in the marketplace. In contrast, generic drugs are usually sold under their chemical name, which reflects their active ingredient rather than a brand identifier. This allows generic manufacturers to offer their products at a lower price once the patent on the brand-name drug expires.

This distinction is crucial because it helps consumers and healthcare providers identify the same medication based on its chemical name when comparing it to its brand-name counterpart. While the formulation and effectiveness of brand-name and generic drugs must be equivalent according to regulatory standards, the way they are marketed and identified remains a key difference. The other choices either misstate the relationship between brand-name and generic drugs or present inaccuracies that do not reflect proper industry standards.