CDMA Slams "Pseudogenerics"

The Canadian Drug Manufacturers Association, which represents the generic drug industry, has attacked "pseudogenerics," identical versions of brand-name drugs, made on the same production line but sold under different company names at generic prices 25%-40% cheaper than the brand-name drug.

The pseudogeneric is sold through a subsidiary or licensee of the brand-name company "to discreetly disguise that many buyers are in effect being overcharged for the identical item," says the CDMA's Drug News & Views publication. A pseudogeneric appears on the market before the first independent generic, and pharmacists buy it, meaning that inventories may be fully stocked by the time the first independent generic appears. "The strategy is then to maintain the exclusivity of the brand as long as possible, to ensure that the independent generic cannot profitably enter the market," says the CDMA.

The brand-name companies are also bringing more "size, shape and color" lawsuits against generics, aimed at ensuring that only the pseudogeneric looks like the brand-name drug, which is sending very confusing signals, says the CDMA. "At the same time that they are launching expensive compliance campaigns aimed at educating the consumer.....they are involved in costly litigation cases which have the potential to increase patient confusion about the medications they are taking, the results of which could put consumers' health and safety in jeopardy."