Multisource Drugs
What are multisource drugs?
Multisource drugs are those that are available as the original brand and as a generic equivalent from other manufacturers.
When compared to the brand-name drug, the generic must:
- Contain the same active ingredients
- Have the same use indications
- Be identical in dosage form, strength, and administration route
- Be bioequivalent
These requirements ensure that the generic version is just as effective as the name brand.
How do multisource drugs improve healthcare?
Since multisource drugs have a generic equivalent, patients can receive the same level of treatment at a lower price. This makes it easier for patients to access medications and supports health equity.
However, once a brand-name drug becomes a multisource drug, biopharma companies often lose revenue to the generic versions. In response, some biopharma companies may use strategies such as RX-to-OTC switching or flanking.
Additionally, because generic equivalents are available, branded medications for multisource drugs may be excluded from insurance coverage. This can adversely impact the branded company as patients will likely opt for the medication covered by their insurance.