How to Identify Authorized Generic Products

August 7, 2023

Authorized Generic Products

At the pharmacy, how often have patients heard the term generic/bioequivalent? What about the term authorized generic (AG)? From a patient’s perspective, an authorized generic is synonymous with bioequivalent generic.


However, from a pharmacist’s perspective, an authorized generic has its own set of hurdles that must be reviewed before the drug can be dispensed at the pharmacy counter. In this article, the aim is to provide pharmacists the needed tools to identify authorized generics and feel confident to dispense them to patients. A great example that will be discussed is the AG Budesonide/ Formoterol (Symbicort®).


Is it an Authorized Generic or a Generic?

An AG and a generic share many similarities, including the same: active ingredient, formulation, route of administration, and many more. Nevertheless, what makes an AG different from a generic? There are two (2) main differences:



  • An AG will have the same inactive ingredients, whereas a generic may have different excipients.
  • An AG will have the same new drug application (NDA) as the branded product, whereas a generic will have an abbreviated new drug application (ANDA)


When looking at Symbicort®, both the AG and the generic will say Budesonide/Formoterol at the pharmacy. However, behind the scenes, the AG will keep the Symbicort NDA, whereas the generic will be submitted under an ANDA.


What Reference Tools Help Determine if a Product is an Authorized Generic or a Generic?

In the pharmacy world, there are so many different services and reference tools provided by commercial and/or governmental vendors; so which reference tool is the best to help determine if a product is an AG? Since the Food and Drug Administration (FDA) reviews and approves drug applications, they serve as a great resource to provide comprehensive information surrounding any product. For example, the FDA provides three (3) great online resources:

  1. The Orange Book, identifies approved drug products based on safety, effectiveness, related patent, and exclusivity information, while also identifying which products are bioequivalent.
  2. The FDA List of Authorized Generic Drugs, updated quarterly and provides an ongoing list of AG products based on confirmation of distribution data in the NDA applicant’s most recent annual report.
  3. The National Drug Code Directory, updated daily and provides a list of all drugs manufactured, prepared, propagated, compounded or processed for sale in the U.S.A.


How to tell if there is an Authorized Generic at the Pharmacy Counter?

At the pharmacy, the pharmacist is reviewing drug-drug interactions, processing insurance, handling patient questions, reviewing medications for accuracy, and so much more. So, among their other functions, how should pharmacists identify an AG? Overall, there is a general structure (see Figure 1):

Remembering that bioequivalent generics are found in the Orange Book with a code that starts with an "A" (AA, AB, among others), while products with codes beginning with any other letter are not bioequivalent (BC, EE, ZZ, among others). When evaluating Budesonide/Formoterol in the Orange Book, an AB generic for Symbicort® is found, but it does not correspond to the product in the pharmacy; therefore, the pharmacist should be considering that Budesonide/Formoterol might be an AG. The pharmacist then reviews the FDA List of Authorized Generic Drugs & The National Drug Code Directory, which shows that an AG is available. After confirmation, the pharmacist can be confident that the Budesonide/Formoterol product is an AG of Symbicort®.


In conclusion, there are tools available to determine if a product is an AG or a generic. The pharmacist can utilize the Orange Book or the FDA Listing of AG/NDC Directory to confirm their findings about a new product. Because the authorized generic is identical to the brand name drug, and shares the same NDA, it is not specifically listed in the Orange Book; however, MC-Rx considers it clinically equivalent to its brand name drug. Each pharmacist should consult applicable State Laws on interchange of a prescription written for a brand name drug that has authorized generic versions. In Puerto Rico, authorized generics are not contemplated in the Pharmacy Law; therefore, since they are not specifically identified in the Orange Book, AGs are not interchangeable at the point of sale.


*Note: This is a clinical summary prepared by MC-Rx and is not intended to replace or add to the regulatory reference. It is the responsibility of all pharmacy professionals to keep up to date with applicable regulations and updates to each State's Pharmacy Law.

A stethoscope is laying on a piece of paper next to a pen
December 12, 2024
URAC accreditation reflects ProCare Rx’s commitment to achieving and maintaining the highest quality, member engagement and experience, and operational standards for PBMs in the industry
By Mc-Rx Team November 15, 2024
Mental health parity and medication adherence
By MC-Rx Clinical Team August 7, 2024
Understanding GLP-1 Medications The landscape of obesity management is evolving, with GLP-1 receptor agonist (RA) medications emerging as a significant player. These FDA-approved drugs have proven effective in helping individuals lose weight, prompting a shift in how they are viewed and covered by health plans. However, the cost implications and strategic decisions surrounding these medications require careful consideration by employer groups and their members. The Case for GLP-1 Medications GLP-1 RAs, originally developed for diabetes management, have shown remarkable efficacy in weight loss. With the growing prevalence of obesity and its associated healthcare costs, there's increasing pressure on health plans to cover these medications. Despite their high cost—annual retail pharmacy expenses can exceed $10,000 per patient—GLP-1 RAs offer potential downstream savings by reducing obesity-related comorbidities such as diabetes, hypertension, and cardiovascular disease​​. Balancing Coverage and Cost Historically, weight loss medications were deemed "lifestyle" drugs and excluded from coverage. However, the rising popularity of GLP-1 RAs and their demonstrated benefits are challenging this perspective. For plan sponsors, the decision to cover these medications involves balancing the high upfront costs with the potential for long-term savings on medical expenses related to obesity. Cost-Containment Strategies For payers choosing to cover GLP-1 medications, several cost-containment strategies can be employed: Formulary Management : Deciding on the placement of these medications within the formulary is crucial. Options range from not covering the drugs to placing them on a high-cost tier with patient cost-sharing. Prior Authorization and Step Therapy : Implementing these measures ensures that only patients with a proper diagnosis (e.g., ICD-10 code for obesity) access these medications, preventing misuse and overutilization. Prerequisite Programs : Requiring participation in wellness or nutrition programs before approving weight loss medications can encourage lifestyle modifications that complement pharmacological treatment. Specialist Restrictions : Limiting prescriptions to weight loss specialists, such as bariatric doctors or endocrinologists, ensures appropriate therapy and monitoring. Duration Limits : Establishing treatment guidelines, such as discontinuing medications if a target weight loss is not achieved within six months, helps manage long-term costs​​. The Role of Brokers and Employer Groups Brokers play a pivotal role in guiding employer groups through the complexities of covering GLP-1 medications. Understanding the cost-benefit dynamics and available cost-containment strategies enables brokers to provide informed recommendations that align with their clients' financial and health objectives. Employer groups, in turn, must weigh the potential benefits of covering these medications against their budgetary constraints and the overall well-being of their workforce. Member Education and Engagement Effective communication with members is essential to ensure they understand the coverage options and adhere to prescribed treatments. Educational initiatives can include: Patient Communication Programs : Providing information on medication adherence, compliance, and lifestyle modifications. Continuing Education : Ongoing programs to keep members informed about the benefits and proper use of weight loss medications. Monitoring and Support : Utilizing pharmacy and medical data to track outcomes and adjust strategies as needed​​. Balance the Scale with Expert Guidance from MC-Rx The adoption of GLP-1 medications for weight loss represents a significant advancement in obesity management. However, the high costs associated with these drugs necessitate careful planning and strategic implementation by brokers, employer groups, and members. By employing robust cost-containment strategies and prioritizing member education, health plans can navigate the financial challenges while delivering meaningful health benefits to their populations. MC-Rx, as a full-service pharmacy benefits manager, offers the expertise and tools to help clients optimize their coverage decisions and manage the complexities of incorporating GLP-1 medications into their health plans. Here are just a few of the GLP-1 strategies we use to shield our clients from excessive costs: Implementation of Drug Management Tools, which is critical to ensure proper utilization for GLP-1s. Strategic Benefit Design, which also protects clients from improper GLP-1 utilization. Clear Member Communication, which is crucial for proper adherence and compliance. When implemented with an existing client, the above-listed strategies helped them achieve $382,000 in cost avoidance for GLP-1s. With the right approach, the benefits of these medications can be realized, contributing to better health outcomes and potentially lowering overall healthcare costs in the long run. For more information on managing GLP-1 medications and other pharmacy benefits, reach out to an MC-Rx expert today .
By MC-Rx Clinical Team August 2, 2024
Mental Health Parity and Medication Adherence
March 21, 2024
MC-Rx, powered by ProCare Rx, has been notified by the Academy of Managed Care Pharmacy (AMCP) of the acceptance of their abstract, “Improving Adherence to HIV PREP via a PBM-Driven Educational Intervention” , for presentation at AMCP 2024 Conference in April.
February 23, 2024
Exploring the rising costs and demands of weight-loss medication and how to combat those costs, significantly lowering drug costs for payors and increasing access for patients who need them.
January 16, 2024
A message from Marileny Lugo, President, MC-Rx
January 16, 2024
A message from Marileny Lugo, President, MC-Rx
January 10, 2024
To decrease the burden on healthcare costs, at MC-Rx we strive to create awareness by educating our community regarding the importance of prevention.
September 28, 2023
Increased medication adherence has been linked to better clinical and financial outcomes.
More Posts
Share by: