Generic drugs have the same active ingredient (the chemical that makes the drug work) to work the same way in the body as the brand-name drug. Generic drugs must also have the same amount of active ingredient in the prescription.

Health Canada reviews and approves all drugs before they can be sold in Canada. For generic drugs, studies must show that the generic drug is designed to work the same way in the body as the original brand name drug.

Health Canada also has rules about how all drugs are manufactured. All companies selling drugs in Canada must follow the same rules for the manufacturing process and for ensuring the quality of their ingredients.

A company must spend many years studying a new brand name drug before it can be approved for sale in Canada. The company then holds a patent on the drug, so no other company is allowed to sell it. This allows the first company to earn back the money it spent on research.

When the patent expires, other companies are allowed to make copies of the drug. These generic drug companies don’t have to spend as much money studying the medication. That lowers the price.

There is usually competition between the generic drug companies. That also makes the price lower.

Rarely, someone might be allergic to an inactive ingredient in a drug. If you are allergic to ingredients such as lactose, gluten, sulfites, or tartrazine, check with your pharmacist before you take any drug (both brand name and generic) for the first time.

Health Canada’s web page on The Safety and Effectiveness of Generic Drugs is available at: http://www.hc-sc.gc.ca/hl-vs/iyh-vsv/med/med-gen-eng.php