A generic equivalent is a medication that contains the same active ingredient and works the same way as the original brand name drug. A generic alternative is a generic medication that may not have the same active ingredient, but works in the same way as another drug. An example of a generic alternative is ranitidine. It is the generic equivalent of Zantac®, but it works in the same way to relieve stomach acid as Axid® and Pepcid®.
Zantac, Axid, and Pepcid are the same “class” of medicine but contain different active ingredients. So, the generic form of Zantac, “ranitidine,” is a lower cost alternative in the same class of medicine as Axid and Pepcid.