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Technically, there is no generic drug for Nexium (generic name is esomeprazole). However, esomeprazole is the isolated isomer (S-enantiomer) of omeprazole which you may know more as the over-the-counter drug Prilosec.

Omeprazole and esomeprazole are both proton pump inhibitors, used to treat duodenal and gastric ulcers and gastro-esophageal reflux disease (GERD).

When the patent was running out for omeprazole, AstraZeneca, the manufacturing company of omeprazole, developed the isolated form as a way to counter the loss of profit it would incur after the expiration of its patent. This practice is common among drug companies foreseeing the expiration of its major drugs.

AstraZeneca marketed Nexium ("the purple pill") as a more potent and overall more effective drug than omeprazole. In actuality, although the S-enantiomer is more active than the R-enantiomer, the difference does not account for much. In general, the difference between a single active enantiomer and a mixture can be a difference in time of onset of action (sometimes 5 minutes) or it can be the strength of the dose (double the strength of the mixture). Compared to the relatively low cost of omeprazole, the more expensive cost of Nexium is not worth the differences between the two drugs. It may still be disputable however. Some people believe the active enantiomer does in fact provide better effectiveness than the racemic mixture.

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