Generic Drug

Definition

A pharmaceutical product that contains the same active ingredient, dosage form, strength, and route of administration as an originator (branded) drug and is demonstrated to be bioequivalent. Generic drugs can be manufactured and marketed after the expiry of the originator's patent protection and regulatory exclusivity periods. They typically enter the market at 70-90% discounts to the branded price, and their introduction materially impacts the valuation of pharmaceutical patent intangible assets in purchase price allocations.