The generic name is sometimes referred to as the chemical name or non-proprietary name. There are many major pharmaceutical manufacturers. A tradename, brandname, or proprietary name is the specific name of a product made by a given manufacturer. Each manufacturing company has its own brandname for the medication. Other companies use the generic name, amoxicillin and do not have a brandname for the product.
Generic drugs are usually less expensive than their brandname counterparts.
The active ingredient or ingredients are identical but some of the other ingredients which make up the product, such as binders, fillers and dyes, may differ. These other ingredients have no effect on the action of the drug. When a company first develops a new drug, it must conduct extensive testing to make certain that the drug is safe and effective before it can be approved for use. Once approved, the company will usually heavily advertise its new product. The initial research, testing, and advertising are very expensive.