Securing Anti-Counterfeiting Technologies

Using automatic identification methods, such as barcodes or radio frequency identification (RFID), as part of item-level packaging, is seen as a way of protecting pharmaceutical products from counterfeiting and other threats. These technologies can also be used to automate electronic pedigrees, supply chain management, reverse logistics and inventory control. Pharmaceuticals must be protected from counterfeiting and theft because these affect public safety and drive up consumer drug prices. But barcodes and RFID tags used on pharmaceutical packaging must be secured if they are to provide any real protection.

Threats to the pharmaceutical supply chain include stolen products, unapproved generics, re-introduction of expired products, counterfeits, up-labelled products, diverted products, and parallel imports. The World Health Organization estimates that the percentage of drugs which are counterfeit range from around one per cent of sales in developed countries to over 10 per cent in developing countries, depending on the geographical area (1). The US-based Centre for Medicines in the Public Interest estimates that, globally, counterfeit pharmaceutical commerce will grow to become 16 per cent of the aggregate size of the legitimate industry, a six percentage-point increase from 2004. This illegal business will generate $75 billion in revenues for its participants in 2010, a 92 per cent increase from 2005 (2).