Counterfeit Drug Infiltration of the Legitimate Supply Chain

In a recent investigation, Dan Rather examined the fake prescription medication market and attempts of counterfeiters to infiltrate the US market. Dan Rather spoke to Andre Watson, US special agent in charge of immigration and customs enforcement regarding a counterfeit medicine smuggler named Mr. Xu who had access to extensive manufacturing and distribution capabilities in China to produce fake, chemically inaccurate version of influenza vaccines, prostate cancer treatment, blood thinners, Alzheimer's medication and other vital drugs. After six years of selling fake medications wholesale inside legitimate pharmacies in Europe, he began selling them in the U.S. Finally, U.S. Agents infiltrated Mr. Xu's large-scale phony drug production line, which could produce 200,000 boxes of counterfeit drugs in a week. (Partnership for Safe Medicines, September 15, 2010; Link here)

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Growing Problem of Counterfeit Drugs is Hurting Patients, Companies

According to the Pharmaceutical Security Institute (PSI), nearly 1,700 incidents of counterfeit drugs were reported worldwide last year which is triple the number from 2004. Moreover, estimates for the size of the counterfeit drug market range from $75 billion to $200 billion a year although the market is likely much bigger because many cases are hard to detect. A weak economy along with rising drug prices can lead to consumers seeking out cheaper products online or from unauthorized providers, says Bryan Liang, a board member at the Partnership for Safe Medicines. Counterfeiters are now able to create such convincing fake drugs, even experts find it hard to distinguish the copies from the real deal. Tom Kubic, CEO of PSI points out that "You can make more money in counterfeit drugs than heroin. There's a major financial incentive for criminals because of the low risk of detection and prosecution." ("Growing Problem of Fake Drugs Hurting Patients, Companies," USA Today, September 12, 2010; Story here)

Russia: Government Adopts New Rules for Destruction of Counterfeit Drugs

Russia recently adopted new guidelines for the destruction of counterfeit drugs as well as for medications that are substandard. The new law, which was passed on September 3, will require that the destruction of all fake drugs be handled by organizations that are licensed for the collection, transportation and disposal of grade I-IV waste, according to SecuringPharma.com. The legislation also recommends that such organizations should have access to specialized facilities where the counterfeit drugs can be disposed of with the proper equipment. (Partnership for Safe Medicines, September 16, 2010; Link here)

Israel: Lifestyle Drugs are the Most Prevalent Counterfeits

Knowingly or unknowingly, It is estimated that 1 out of every 100 Israelis buys counterfeit drugs at one time. The most widely sold counterfeit drug in Israel is a counterfeit version a lifestyle drug produced by drug manufacturer Pfizer. According to the company, between 2007 and 2009, Israeli authorities reported that they had 438,410 pills identified by Pfizer as counterfeit versions of their drug and this was only based on reported cases. Recent media reports point to seizures of a wide variety of counterfeit drugs including those to treat malaria, tuberculosis, and anxiety, as well diet drugs and antibiotics. ("Fake [Lifestyle Drugs] Most Prevalent Counterfeit Drug in Israel," Globes, September 15, 2010; Story here)