Life-saving drugs like antibiotics and anti-malaria are some of the most counterfeited products in the world. This issue is not slowing down; medicines continue to be a serious problem across the globe. Pharmaceutical companies need to implement better security measures for a safer market.
What are Counterfeit Medicines?
Counterfeit medicines are the drugs that knowingly fraud the consumers in terms of their source and ingredients. From containing wrong ingredients and improper dosages to being contaminated with harmful substances, counterfeit medicines are ambiguous in their production.
Some commonly counterfeited drugs include over-the-counter medications to treat lifestyle issues like weight loss and erectile dysfunction. This is targetted as they have high demand, and often lower scrutiny. Not just that, essential drugs like antibiotics and antimalarials are also commonly counterfeited.
The counterfeiters mimic genuine medicines by replicating the packaging of legitimate products. This makes it difficult for consumers and healthcare providers to detect the fakes.
Difference between Counterfeit, Substandard, and Falsified Medicines:
| Medicine | Substandard Medicine |
| Fraudulent products made with the intention to look like legitimate medicines. | Products that fail to meet quality standards due to poor manufacturing but aren’t intentionally misleading. |
The Scale of the Problem
Counterfeit medicines are a worldwide problem, affecting both developed and developing countries. The problem is particularly severe in regions with weak regulatory enforcement and low income, such as parts of Africa, Asia, and Latin America. The WHO estimates that around 10% of medical products sold in developing countries t.
Certain industries and types of medicines are more vulnerable to counterfeiting, such as:
- High-Demand Drugs: Medicines with high demand and low production costs, like some over-the-counter drugs, are frequently targeted.
- Costly medications: Medications that are difficult to manufacture are also counterfeited, leading to a lucrative black market for counterfeits.
Where Do We Find Counterfeit Medicines?
To stay under the radar, counterfeiters exploit the complex global pharmaceutical supply chains to introduce them into the market. These fake drugs are, unfortunately, available everywhere but mainly:
- Online
- In street markets
- In pharmacies
- In some hospitals
Even though generic medicines are available at a competitive price, these products are also counterfeited. They are often still successfully sold as genuine articles.
Here are some of the risks of the fake medicines:
Health Risks
Counterfeit medicines . Toxic elements may be added with little concern for the potential harm they may cause. Profit is the aim of counterfeiters and corners may be cut to achieve this.
Counterfeit products don’t have to go through a trial period like genuine medicines. This means, in the best-case scenario, a counterfeit drug might simply be ineffective. In more unfortunate cases, they can cause life-threatening effects, from a mild allergic reaction to death.
For example, over 100 patients died in Pakistan after taking counterfeit heart medication. In fact, the drug was already distributed to almost 40,000 people by the time the case came to light. This tragic case shows the catastrophic outcomes such medicines can cause.
Another example is the spread of fake antimalarials in sub-Saharan Africa, killing almost 500,000 people every year. These counterfeit drugs often contain insufficient amounts of active ingredients, developing drug-resistant strains of malaria.
Economic Impact
Pharmaceutical companies suffer significant financial losses due to counterfeit products, with some estimates suggesting that the loss of over $200 billion annually. These losses aren’t only due to direct sales revenue but also from the cost of combating counterfeiting, increased regulatory scrutiny, and damage to brand reputation.
Plus, the entire healthcare systems have to bear the burden of counterfeit medicines, too. From the treatment of side effects to the resources spent on legal actions , all contribute to increased healthcare costs.
Legal and Regulatory Challenges
One of the biggest risks that a pharmaceutical company faces is that of legal penalty. In a scenario where multiple people face adverse effects from using a medicine, resulting in death, pharmaceutical companies can be held liable. In such a scenario, the company might have to prove that:
- The medicines taken were counterfeit
- The company took all the necessary measures to prevent counterfeiting
Apart from that, many countries have inadequate or poorly enforced laws against counterfeit medicines, making it difficult to prosecute counterfeiters effectively. Even in countries with strong regulatory frameworks, the global nature of the pharmaceutical supply chain complicates enforcement.
Counterfeiters often exploit regulatory loopholes, using complex supply chains and online platforms to distribute their products. As a result, it’s challenging to trace counterfeit medicines back to their source, making it difficult to hold those responsible accountable.
Loss of Brand Reputation
It’s not only the consumers who are affected by the counterfeit products. Reputations are put on the line when a company’s image is put in the hands of criminals. Either through scandal or word of mouth, a product may become discredited if a counterfeit product is presumed real, with consumption causing a myriad of issues. Consumers would choose rather to put their health in the hands of another company than continue to consume a presumably unsafe product.
Current Anti-Counterfeiting Technologies
Implementing a security feature on your product would require some additional cost. Yet the knowledge that your product is protected against counterfeiting is invaluable, not only for your brand but also for your customers.
Anti-counterfeiting technologies prove their worth further when looking at their paired usage with statistical data platforms. Together, companies have the chance to not only track the usage of their product but also to analyze patterns of use that may seem unusual or fraudulent.
These technologies can be made available both to your customer and for use in-house. Again, it depends on the needs of your company.
Here are the current anti-counterfeiting solutions available in the market.
Holograms and Watermarks
Holograms and watermarks are visible security features, used on packaging and labels of the products. Consumers can easily recognize them for authentication.
Limitations: Skilled counterfeiters can easily replicate these features.
RFID (Radio Frequency Identification) Tags
RFID tags are embedded in packaging or labels, allowing products to be tracked through the supply chain. These tags store unique information about the product, which can be read using RFID readers.
Limitations: The technology can be costly to implement, and counterfeiters have developed ways to clone RFID tags.
QR Codes and Barcodes
QR codes are printed on product packaging and are scanned to verify authenticity. They are often linked to databases that provide detailed information about the product.
Limitations: Counterfeiters can duplicate them, so they have to be combined with other security features.
Security Inks and Printing Techniques
Special inks that change color or become visible under specific conditions (e.g., UV light) are used in packaging. These features are hard to replicate without specialized equipment.
Limitations: They require specific tools for verification, which may not always be available to consumers or inspectors. Plus, they are expensive to implement on a large-scale production.
Tamper-Evident Packaging
These are packaging designed to show clear signs of tampering, such as seals that break when opened. They provide a clear visual indication of tampering, which can deter counterfeiters.
Limitations: Once tampered with, the packaging loses its effectiveness. And counterfeiters can easily mimic the tamper-evident features.
The Best Anti-Counterfeiting Solution
One of the biggest limitations of the above solutions is the need to change parts of your packaging, or having to spend a huge sum on protection.
But there are solutions, like that offered by AlpVision, that can protect your pharmaceutical products without having to change your packaging or product aesthetically. Here are the solutions:
AlpVision Cryptoglyph
Cryptoglyph is a technology adapted for printed products such as folding cartons, labels, and blisters. It’s invisible and can be verified easily with a smartphone app.
When it comes to pharmaceutical products, you need a solution that can be deployed to mass production, without altering the production process. Cryptoglyph can do both, without a hefty price tag when compared with other solutions. It currently protects over 30 billion items of product each year across industries worldwide
AlpVision Fingerprint
AlpVision Fingerprint is dedicated to protecting physical products such as syringes, vial flip-off-tops, or bottle caps. It can protect any mass-produced objects that include molding, stamping, rolling, or tooling.
You can combine both solutions with our Brand Monitoring System (BMS) which monitors and reports the product statistics.
How to Find the Best Security Solution for Your Brand?
Counterfeiting persists as an issue that impacts all industries around the world. Indeed, there are laws and restrictions in place to combat it. However, when counterfeiters are determined to profit in both grey and black markets, laws are often ignored or bypassed. It’s imperative to add a second layer of protection.
At AlpVision, our technologies not only protect your packaging or product but also allow you to track and trace potential instances of counterfeiting.
What’s more, finding the best protection for your product is no easy task. Many solutions are available on the market and it is imperative to find the one most adapted to your needs. Many factors should be taken into consideration. You should first have an idea of what you are looking for. For instance, if you would like a covert or an overt solution.
You can read this whitepaper that guides you through the different solutions available and how you can select one that suits your needs.
Download our Whitepaper