Therapeutic Equivalence Codes: How the FDA Determines If Generic Drugs Can Be Swapped

Therapeutic Equivalence Codes: How the FDA Determines If Generic Drugs Can Be Swapped

When your pharmacist hands you a generic pill instead of the brand-name drug your doctor prescribed, you might not think twice. But behind that simple swap is a complex, science-backed system run by the FDA to make sure it’s safe. That system? Therapeutic equivalence codes. These two-letter codes-like AB, BC, or BX-are the FDA’s way of telling pharmacists: Yes, you can substitute this generic. No, you can’t. It’s not guesswork. It’s not opinion. It’s data.

What Therapeutic Equivalence Really Means

Therapeutic equivalence isn’t just about having the same active ingredient. Two drugs can have identical chemicals and still behave differently in your body. Maybe one dissolves too slowly. Maybe the other releases its dose too fast. That’s why the FDA doesn’t just check the label. It checks how the drug works inside you.

To be rated therapeutically equivalent, a generic drug must pass three tests:

  • Pharmaceutical equivalence: Same active ingredient, strength, dosage form, and route of administration.
  • Bioequivalence: The generic delivers the same amount of drug into your bloodstream at the same rate as the brand-name version.
  • Clinical equivalence: No difference in safety or effectiveness when used as directed.
Only products that clear all three get an ‘A’ code. That’s the green light for substitution. If any part fails-even slightly-you get a ‘B’ code, and the pharmacist can’t swap it without checking with your doctor.

The Orange Book: The FDA’s Secret Weapon

You won’t find therapeutic equivalence codes on drug packaging. You won’t see them in your prescription. They live in one place only: the Approved Drug Products with Therapeutic Equivalence Evaluations, better known as the Orange Book. First published in 1980, this is the FDA’s official database of every approved drug and its substitution status.

Every month, the FDA updates it. New generics get added. Existing codes change if new studies come out. In 2023, the Orange Book listed over 14,000 approved drug products. Of those, about 12,600-90%-had an ‘A’ rating. That means for most prescriptions, substitution is automatic and legally allowed in 49 states.

Pharmacists rely on this book daily. A 2022 survey found that 73% of community pharmacists check the Orange Book at least once a week. For them, it’s not optional-it’s the law.

Decoding the Letters: A, B, and Everything In Between

The first letter tells you the big picture. The second (and sometimes third) letter adds detail.

  • A-rated: Safe to substitute. These are the most common.
  • B-rated: Not automatically substitutable. More scrutiny needed.
But here’s where it gets messy. Not all ‘A’ codes are the same. If a drug has multiple brand-name versions (called Reference Listed Drugs), the FDA adds numbers to keep things straight:

  • AB1, AB2, AB3, AB4: These mean the generic matches a specific brand-name version. You can’t swap between AB1 and AB2 unless your doctor says it’s okay.
And then there are the ‘B’ codes with extra letters:

  • BC: Extended-release products with bioequivalence questions.
  • BD: Known bioequivalence problems.
  • BT: Topical creams or ointments where absorption is hard to measure.
  • BN: Inhalers or nebulizers.
  • BR: Suppositories or enemas.
  • BS: Issues with the drug’s standard quality.
  • BT: Topical products with unclear absorption.
  • BX: Not enough data to decide.
A ‘BX’ code doesn’t mean the drug is unsafe. It just means the FDA doesn’t have enough proof yet to say it’s equivalent. That’s why pharmacists can’t substitute it without a doctor’s okay.

The FDA's Orange Book glowing with therapeutic equivalence codes AB2, BX, and BC, surrounded by molecular data streams.

Why Some Generics Get ‘B’ Codes Even When They Work

Here’s the frustrating part: some ‘B’-rated drugs are just as effective as their brand-name counterparts. But the FDA’s testing tools weren’t built for complex products.

Think about a topical cream for eczema. How do you prove two creams absorb the same amount of medicine through skin? You can’t just measure blood levels like you can with a pill. Same with inhalers, injectables, or long-acting patches. These products need more advanced testing-but the FDA’s current methods often fall short.

Dr. Duxin Sun, a professor at the University of Michigan, put it bluntly: “Current TE codes for topical, inhaled, and complex injectable products may not adequately reflect therapeutic equivalence.” That’s why you’ll see ‘B’ codes on drugs that many doctors and pharmacists have used safely for years.

The result? Confusion. A 2022 American Medical Association survey found that 42% of physicians didn’t understand how to interpret ‘B’ codes. Some refused to let pharmacists substitute them-even when it was safe. Others didn’t realize a ‘B’ rating didn’t mean the drug was ineffective.

What Happens When You Get a ‘B’-Rated Drug

If your prescription says ‘B’, your pharmacist can’t swap it unless your doctor says it’s okay. In 38 states, pharmacists are legally required to notify your doctor if they want to substitute a ‘B’-rated drug. That means a phone call, a fax, or an electronic message. It slows things down.

But here’s the good news: you can still use the drug. ‘B’ doesn’t mean ‘bad’. It means ‘needs review’. If your doctor knows the drug works for you, they can write “Dispense as Written” on the prescription. That overrides the substitution rule.

And if you’re paying out of pocket? Many ‘B’-rated generics are still cheaper than the brand name. So even if you can’t swap automatically, you might still save money.

Doctor and patient discussing a B-rated generic drug, with a translucent brand-name version floating beside it.

How This System Saves Money-And Lives

Generic drugs make up 90% of prescriptions in the U.S. But they cost only 23% of what brand-name drugs do. That’s over $370 billion saved every year.

Therapeutic equivalence codes are the engine behind that savings. Without them, pharmacists couldn’t confidently substitute generics. Doctors would have to write new prescriptions. Insurance companies would pay more. Patients would pay more.

A 2023 study by the American Pharmacists Association found that pharmacists spend an average of 2.7 minutes per prescription checking TE codes. That adds up to billions in savings because it prevents costly brand-name prescriptions.

And here’s the kicker: since the system started in the 1980s, there’s never been a single documented case of a patient harmed because an FDA-approved generic was substituted.

What’s Changing in 2025?

The FDA knows the system isn’t perfect. Complex drugs are on the rise. Inhalers, patches, injectables-these aren’t going away. So in 2022, the FDA released a draft guidance to update how it evaluates therapeutic equivalence for these products.

The goal? Reduce ‘B’ ratings for complex generics by 30% by 2027. How? By using better tools: real-world data, advanced modeling, and more reliable in vitro tests. They’re also expanding their Product-Specific Guidelines to 1,850 documents-each one giving manufacturers clear instructions on how to prove their generic works.

The future of therapeutic equivalence won’t rely only on blood tests. It’ll include patient outcomes, real-world usage, and smarter science. But the core principle stays the same: substitution must be safe, effective, and backed by evidence.

What You Need to Know as a Patient

You don’t need to memorize AB1 vs BX. But you should know this:

  • If your generic looks different than your last refill, ask your pharmacist why. It might be a different AB code.
  • If your prescription says ‘B’, don’t assume it’s unsafe. Ask your doctor if substitution is okay.
  • If you’ve had side effects with one generic, tell your doctor. It might not be the drug-it might be the filler or coating.
  • Always check your receipt. It should list the generic name and manufacturer. If you’re unsure, call your pharmacist.
Therapeutic equivalence codes exist to protect you-not to confuse you. They’re not perfect. But they’re the best system we have. And right now, they’re saving billions while keeping millions of patients safe.

What does an AB code mean on a generic drug?

An AB code means the generic drug is therapeutically equivalent to the brand-name version. It has the same active ingredient, strength, dosage form, and has passed bioequivalence testing. Pharmacists can substitute it without asking the doctor. If you see AB1, AB2, etc., it means the generic matches a specific brand-name version, and you shouldn’t switch between AB codes without checking with your prescriber.

Can I be switched to a different generic if my prescription says ‘B’?

No, not automatically. A ‘B’ rating means the FDA hasn’t confirmed therapeutic equivalence. Your pharmacist can’t swap it unless your doctor gives written permission. In 38 states, pharmacists must notify your doctor before making the switch. But that doesn’t mean the drug is unsafe-just that more data is needed.

Are all generic drugs rated with therapeutic equivalence codes?

No. Only multisource prescription drugs are rated. Single-source brand-name drugs (505(b)(1) NDAs) are listed as Reference Listed Drugs but don’t get TE codes. Over-the-counter (OTC) drugs, dietary supplements, and biologics like insulin or vaccines are also excluded. The system only applies to generic versions of FDA-approved prescription medications.

Why do some generics have ‘B’ codes even if they work fine?

Because the FDA’s testing methods aren’t always able to measure how complex drugs behave in the body. For things like inhalers, topical creams, or long-acting injectables, traditional blood tests don’t tell the whole story. A drug might work perfectly in patients, but if the lab tests can’t prove bioequivalence, it gets a ‘B’. That’s why experts are pushing for better tools to evaluate these products.

How often does the FDA update therapeutic equivalence codes?

The FDA updates the Orange Book every month. New generics get added, existing codes change if new studies come out, and products may be downgraded or upgraded based on new data. Pharmacists and prescribers rely on these monthly updates to make accurate substitution decisions. You can check the latest version for free on the FDA’s website.

14 Comments

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    Lawver Stanton

    January 2, 2026 AT 05:00

    So let me get this straight - the FDA gives a thumbs up to generics based on blood tests, but if you’re using a cream for eczema or an inhaler for asthma, they just shrug and say ‘eh, we don’t know’? That’s not science, that’s laziness with a government seal. I’ve been on the same generic inhaler for 8 years. It works. But according to the Orange Book, it’s a ‘BC’? Why am I paying more for the brand if the generic doesn’t kill me? Someone’s getting rich off this confusion.

    And don’t even get me started on the ‘BX’ code. That’s not a rating, that’s a cop-out. It means ‘we haven’t bothered to test this properly yet.’ So we’re stuck paying brand prices because the FDA’s tools are stuck in 1992? Come on.

    I’ve got a cousin with psoriasis. She’s on a topical steroid cream that’s ‘BT’ rated. Her insurance won’t cover the brand. So she’s forced to use a different cream that makes her skin crack and bleed. Meanwhile, the ‘BT’ cream? It’s literally the only thing that works. But because the FDA can’t measure absorption through skin, they call it ‘unproven.’ That’s not protecting patients. That’s punishing them with bureaucracy.

    And don’t tell me ‘it’s safe’ - safety isn’t just about not dying. It’s about not suffering. If my doctor says it works, why does a government database override that? This isn’t medicine. It’s spreadsheet therapy.

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    Sara Stinnett

    January 3, 2026 AT 18:46

    Oh, the FDA’s ‘Orange Book’ - the sacred scripture of pharmaceutical bureaucracy. How quaint. You treat a two-letter code like divine revelation, as if ‘AB’ is written in stone by the gods of pharmacology. But let’s not pretend this is about science - it’s about liability, profit margins, and the institutional fear of innovation.

    Let me ask you: if a drug is chemically identical, bioequivalent, and clinically inert, why does it need a letter? Why not just say ‘same molecule, same effect’? Because then the brand-name monopolists would lose their grip. The ‘AB1, AB2’ distinction? That’s not science - it’s a legal loophole designed to keep generics from competing freely. You think the FDA cares about your skin cream? No. They care about avoiding lawsuits. And so they bury patients under a mountain of alphabet soup.

    And let’s not forget: the ‘BX’ code is the ultimate insult. It means ‘we don’t know, but we won’t let you try.’ That’s not evidence-based medicine - that’s intellectual cowardice dressed in a lab coat. The real tragedy? The people who need these drugs the most - the poor, the elderly, the uninsured - are the ones forced to pay the price for this charade.

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    linda permata sari

    January 5, 2026 AT 04:06

    As someone from Indonesia, I can’t believe how much you all take this for granted. Here, generics are the only option - and we don’t even have an Orange Book. We just get what’s cheap, what’s available, and hope for the best. No codes. No checks. Just pills in a bag.

    But you Americans? You have this whole system - data, regulations, monthly updates - and you’re still complaining? You’re lucky. I’ve seen people in my village die because they couldn’t get *any* version of insulin. No AB, no BX - just nothing.

    So yes, the system’s imperfect. But it’s *something*. It’s better than nothing. Please don’t throw away the tool just because it’s not perfect. Fix it. Don’t curse it.

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    Brandon Boyd

    January 5, 2026 AT 13:59

    Let me tell you something - this system is a win. Seriously. Think about it: 90% of prescriptions are generics. That’s billions saved every year. People who couldn’t afford their meds? Now they can. Kids with asthma? They’re breathing because of a $5 generic inhaler.

    Yeah, the ‘B’ codes are confusing. Yeah, the Orange Book is a wall of text. But guess what? Pharmacists use it. Doctors use it. And patients? They’re getting healthy at a fraction of the cost.

    Instead of complaining about ‘BX’ and ‘BC,’ let’s push for better testing tools. Let’s fund the FDA so they can update their methods. Let’s make this system even better - not tear it down because it’s not perfect.

    Be part of the solution. Not the noise.

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    John Chapman

    January 6, 2026 AT 17:50

    THIS IS WHY I LOVE AMERICA 🇺🇸

    They didn’t just say ‘meh, generics are fine’ - they built a whole system to make sure it’s SAFE. AB codes? Orange Book? Monthly updates? That’s next-level responsibility. I used to think generics were sketchy. Now I know they’re the reason my grandma can afford her blood pressure meds.

    And if a drug is ‘BX’? Cool. That means they’re being careful. Not lazy. Careful.

    Don’t hate the system. Help improve it. 💪💊

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    Urvi Patel

    January 8, 2026 AT 01:00

    How can you trust an American system that can't even measure skin absorption? The FDA is a joke. We in India have generics that work better than your brand names and we don't need a 14 page report to prove it. Your bureaucracy is a cancer on healthcare. Just let doctors decide. Stop hiding behind letters.

    AB1 AB2 BX BC - what is this kindergarten? You think patients care about codes? They care about feeling better. You're overengineering a simple solution.

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    anggit marga

    January 8, 2026 AT 16:07

    Look I'm Nigerian and we don't have this orange book nonsense. Our pharmacies give us generics and people live. No codes no fuss. Your system is designed to protect big pharma not patients. You call it science but it's just profit protection with a fancy name. Why do you need AB2 when AB1 works? Why not just say same drug same price? You overthink everything. Your system is broken because you're scared of change.

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    Stewart Smith

    January 9, 2026 AT 16:16

    So… the FDA’s system saves billions, prevents zero documented harm, and still gets called ‘bureaucratic nonsense’? Interesting.

    Meanwhile, I’m sitting here watching people complain about ‘BX’ codes while simultaneously demanding cheaper meds. You can’t have it both ways. Either trust the system that’s been keeping people alive for 40 years - or stop pretending you care about safety.

    Also - the Orange Book is free. You can look it up. No subscription. No login. Just click. But nope. Too much effort. Let’s just yell on Reddit instead.

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    Retha Dungga

    January 10, 2026 AT 08:25

    Therapeutic equivalence is just another way to make medicine feel like a math problem instead of a human experience

    What if the real problem isn't the code - but the fact that we've turned healing into a spreadsheet?

    People don't need AB1 or BX. They need to feel seen. To know someone cared enough to make sure the drug didn't just pass a lab test - but actually helped them live

    Maybe we're measuring the wrong things

    ...or maybe I'm just too emotional for this system

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    Aaron Bales

    January 12, 2026 AT 01:30

    Bottom line: AB = safe to swap. B = talk to your doctor. BX = wait for more data. That’s it.

    Pharmacists are trained to use this. Doctors are trained to interpret it. Patients just need to ask: ‘Is this a swap?’

    It’s not magic. It’s not conspiracy. It’s a tool. Use it.

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    Branden Temew

    January 12, 2026 AT 06:03

    If a drug can’t be measured, does it even exist?

    That’s the real question behind the ‘B’ codes. The FDA doesn’t say ‘this doesn’t work’ - they say ‘we can’t prove it works the same way.’ But in medicine, proof is always incomplete. We accept approximations all the time. Why not here?

    Is it because we treat pills like sacred objects - each molecule must be identical, or the universe collapses?

    Maybe the real problem isn’t the code. It’s our belief that medicine can be reduced to binary outcomes - yes or no, AB or BX.

    What if some things just… work? And we don’t need a letter to tell us that?

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    Frank SSS

    January 12, 2026 AT 20:35

    Okay so I’m just gonna say this - the whole system is a scam. The FDA doesn’t care about you. They care about lawsuits. The ‘B’ codes? That’s not safety. That’s insurance. The moment someone has a bad reaction to a generic, the lawsuit lands on the pharmacist. So they play it safe. And you? You’re the one paying the price in delayed care, higher costs, and confusion.

    And don’t give me that ‘it’s never harmed anyone’ line. That’s because people don’t report side effects unless they’re dying. Most just switch back to the brand and pay more. The system works because people are too tired to fight it.

    So yeah - ‘safe.’ But it’s designed to protect corporations, not patients. And I’m done pretending otherwise.

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    Paul Huppert

    January 13, 2026 AT 05:47

    My mom’s on a ‘BC’ rated inhaler. It’s cheaper than the brand. Works fine. But the pharmacist had to call her doctor. Took 20 minutes. She got annoyed. I got frustrated.

    But then I thought - if it stops a mistake, even one, it’s worth it.

    So yeah, it’s slow. Yeah, it’s confusing. But I’d rather have a system that’s cautious than one that’s fast and deadly.

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    Hanna Spittel

    January 14, 2026 AT 23:16

    AB codes? Orange Book? 🤔

    Ever heard of the Great Generic Cover-Up? 🚨

    Big Pharma owns the FDA. The ‘B’ codes? They’re fake. They’re there to make you think there’s a system - but really, they’re just delaying the inevitable: you’re gonna pay for the brand anyway.

    They don’t want you to know that generics are often made in the same factories. Same pills. Same everything. Just a different label.

    And that ‘BX’? That’s not ‘not enough data.’ That’s ‘we’re hiding the truth.’

    Check your receipt. Look at the manufacturer. You’ll see the same names as the brand.

    They’re laughing at you. 😈

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