A generic drug can be defined as an identical, or bioequivalent to a brand name drug in its dosage form, safety, strength, route of administration, quality, performance characteristics and intended use. Although generic drugs are chemically identical to their branded counterparts, they are typically sold at substantial discounts from the branded price. The difference between a branded and a generic one is only in its name and price. A generic drug is called by its chemical name whereas a manufacturer assigns a brand name.

According to standard practice and most state laws, a generic drug has to be generically equivalent to its brand-name counterpart. That is, it must have the same active ingredients, strength, and dosage form