42 Police Raids In Argentinean Counterfeit Drug Probe

In Argentina, 42 raids were conducted as part of continuing investigations into counterfeit and illegal drug distribution by organized crime.

According to the Argentinean news organization, Momento 24, Argentinean authorities are continuing their two year investigation of counterfeit drug sellers that operate within workers' unions that involve the use of expired drugs, counterfeiting and murder.

Last week Judge Norberto Oyarbide ordered over 40 raids on suspected workers’ union sites in Capital Federal, Avellaneda, San Justo and other interior locations within Argentina.

As reported by Partnership for Safe Medicines: Among the organizations raided were employment organizations for truckers, metalworkers, air navigators, lottery, port, petrochemical, turf, post and telecommunications, teachers and automotive industries.

In Argentina, healthcare including doctor care and prescription drugs are distributed to the majority of Argentineans’ through their employment union organizations.

According to Momento 24:

• Police collected documentation on the purchase and distribution of cancer drugs, hemophilia medication and AIDS drugs.

• Police are looking for possible connections with drug companies, including San Javier of businessman Nestor Lorenzo, previously arrested and prosecuted for organized crime medicine distribution in 2009.

In earlier reports by Momento 24, Mr. Lorenzo has testified in the investigation for the murders of Sebastián Forza, Damian Ferron and Leopoldo Bina. He testified on the chain of suppliers and creditors of Forza, who, allegedly, sold a shipment of counterfeit hemophilia medications to the National Drug and Technology Agency (Anmat).

According to an earlier Momento 24 story, one of Mr. Lorenzo’s previous business partners in a small chain of drug stores, Luis Marcelo Tarzia died in jail after his arrest for allegedly being the local manager of a Mexican drug gang that set up a methamphetamine lab in Ingeniero Maschwitz.

This is a cautionary tale to industry stakeholders and consumers of pharmaceuticals within developed countries over the possible interdiction of dangerous medications within the legitimate supply chain.

Unfortunately this type of crime is becoming commonplace within the legitimate supply chain in the UK, Germany and even the United States.

Because of its high profit and low risk, counterfeiting or dealing in adulterated, fraudulent or sub-standard medications has become a lucrative trade and has drawn the attention of organized criminal elements. The real danger however is that it not only impacts those involved with the transaction but has potentially lethal implications for unsuspecting consumers who take these dangerous knock offs.

All members of the pharmaceutical supply chain must proactively take measures to protect their inventories.

To read the entire Momento 24 story, visit: http://momento24.com/en/2010/11/26/at-least-42-police-raids-on-the-case-of-counterfeit-drugs/

To read the entire story on Partnership for Safe Medicine, visit: http://www.safemedicines.org/2010/12/argentina-federales-investigate-fake-drug-crime-ring-60.html

To learn about anti-counterfeiting solutions, visit: http://www.xstreamsystems.net/

ASHP: Counterfeit Drugs Pose Growing Health Threat

Counterfeit and substandard medicines constitute a real and growing threat to public health, say federal officials and others who deal with the issue.

Kate Traynor in the American Society of Health-Systems Pharmacists Health Systems News writes an excellent report with some insightful quotes about the October symposium on counterfeit medications that was sponsored by the Partnership for Safe Medicines in Washington D.C.

Included in Ms. Traynor’s story:

• "The problem is getting worse each year. The counterfeiters are winning," said Jeffrey Gren, director of the Office of Health and Consumer Goods at the U.S. Department of Commerce.

• Nancy Kennedy, senior operations manager at FDA's Office of Criminal Investigations, said that counterfeiters previously limited their activities to bringing small amounts of fake medicines into the United States. "Now you see quantities of these drugs coming in and going directly to doctors, clinics, brick-and-mortar pharmacies and...directly to patients," Kennedy said. "I can see international cases' connections growing, and the type and amount of counterfeit drugs and unsafe drugs coming into the country is significantly growing. So I don't like what I see."

• More than 60 nonprofit organizations, including ASHP, are members of PSM, whose stated goal is to raise awareness about the risks of counterfeit medications. The symposium was sponsored by several pharmaceutical companies and other corporate stakeholders.

• FDA Commissioner Margaret Hamburg, the event's keynote speaker, said that in some parts of the world, 30–50% of drugs used to treat serious illnesses are counterfeit products.

• "Still, it's hard to really know the full extent of the problem," she said. "Estimates...vary a lot, and we do need better surveillance and data to truly define the magnitude and scope of the problem."

• FDA announced in the October 13 Federal Register that the agency will commit up to $3.5 million to the World Health Organization for the development of a rapid global surveillance and monitoring system for counterfeits, if the health agencies agree on a cooperative approach to the project.

Industry leadership and consumers in developed countries must be made aware of the danger of counterfeit and substandard medications and that this is no longer just a threat that exists within the third world.


Real solutions and technologies exist today that can eradicate the threat from this dangerous, lethal criminal activity. The global pharmaceutical supply chain must be incentivized to deploy these solutions to protect their brands and the consumer.

To read the entire ASHP article, visit: http://www.ashp.org/import/news/HealthSystemPharmacyNews/newsarticle.aspx?id=3428

To learn more about anti-counterfeiting technologies, visit: http://www.xstreamsystems.net/.

Partnership for Safe Medicines Interchange Conference Quote

By all accounts, the First Annual Interchange Partnership for Safe Medicines Interchange Conference was a huge success and a great step forward to coordinating a domestic agenda with all of the supply chain stakeholders in the fight against counterfeit drugs.

The following quote was by FDA Commissioner Dr. Margaret A. Hamburg during her keynote address at the conference:

“It is sad to realize that we live in a world in which some criminals are willing to maximize profits by placing poisons in products like infant formula, toothpaste and medically necessary drugs. But it is a reality we must face. And, more importantly, it is a reality that we must become more proactive in dealing with. “

Secure Pharma Chain is excited about the success of the conference and encourages all members of the pharmaceutical supply chain to protect their inventories and the consumer by deploying a variety of solutions and technologies.

Commissioner Hamburg’s admonition to become more proactive in the fight against this deadly crime of fraudulent, adulterated and counterfeit drugs is especially relevant with the emergence of a global pharmaceutical supply chain.

To read about the Safe Medicines Conference, visit: http://www.safemedicines.org/2010/10/partnership-for-safe-medicines-first-annual-interchange-conference-huge-.html.

To learn more about anti-counterfeiting technologies, visit: http://www.xstreamsystems.net/.

FDA Commissioner Margaret Hamburg Joins with Public and Private Sector Leaders in Call to Address Global Counterfeit Drug Crisis

"It is clear that FDA needs new regulatory tools that provide the authority we need to meet the challenges we face in today's increasing globalized marketplace, “ stated Dr. Margaret Hamburg, Commissioner of the FDA.

Dr. Hamburg made this statement at the inaugural Counterfeit Drug Interchange Conference hosted by the Partnership for Safe Medicines (PSM).

This conference brought together more than a hundred cross-industry stakeholders to discuss ways to stem the rising tide of counterfeit and unsafe medicines.

Highlights from the press release by PSM included:

• "The FDA is firmly committed to doing all that we can to further strengthen our nation's drug supply and ensure the quality and safety of all drugs and medical products on the U.S. market," said Hamburg. "It is clear that FDA needs new regulatory tools that provide the authority we need to meet the challenges we face in today's increasing globalized marketplace. And we look forward to working with Congress on legislation that will give FDA the ability to protect Americans from harmful drugs and medical products-and fulfill our fundamental public health mission."

• Today's forum underscores the severity of the problem and the interest among all segments of the pharmaceutical sector - law enforcement, patient groups, government regulators, academics and manufacturers - to come together to discuss practical solutions.

• "The U.S. has the safest drug system in the world, but that does not mean American consumers are immune. The instances of counterfeit drugs are increasing and the counterfeiters are becoming more sophisticated, which means that our drug safety is at risk," said Scott LaGanga, executive director of PSM. "PSM's goal with the Interchange is to raise awareness of the scope of this epidemic, as well as the need for global collaboration, information sharing and tools and resources that will help protect consumers across the globe."

• In addition to Dr. Hamburg, speakers included an American victim of counterfeit drugs, representatives from the Drug Enforcement Agency and the Centers for Disease Control and Prevention, law enforcement officers, and patient advocacy groups.

• At the event, PSM also announced that the Generic Pharmaceuticals Association (GPhA) has joined the organization, adding their expertise and network to PSM's efforts to keep all medicines - generic and branded - safe for consumers.

• "Given the role that generic drugs play in the global marketplace, PSM today is even more positioned to continue its battle to keep prescription medicines safe for consumers," said LaGanga. "We welcome GPhA to our membership and look forward to working together on this critical health issue."

Secure Pharma Chain endorses the need form more FDA regulatory authority especially as it pertains to dealing with adulterated, fraudulent and counterfeit medications and raw materials in the proliferating global pharmaceutical supply chain.

Secure Pharma Chain also believes that it is incumbent on all members of the pharmaceutical supply chain to proactively protect their industry, inventories and most importantly the consumer by deploying best practices, solutions and technologies to combat this deadly criminal act.

To view the entire PSM press release, visit: http://www.safemedicines.org/2010/10/fda-commissioner-margaret-hamburg-joins-with-public-and-private-sector-leaders-in-call-to-address-global-counterfeit-drug-cri.html

To learn more about anti-counterfeiting technologies for pharmaceuticals, visit: www.xstreamsystems.net.

SafeMedicines: Ukraine Shut Down 149 Illegal Pharmacies in First Half of 2010

Ukrainian officials shut down nearly 150 pharmacies in the first half of 2010 because they were suspected to be selling counterfeit drugs.

SafeMedicines.Org is blogging on a report from NRCU regarding an inspection of Ukrainian pharmacies conducted by Ukraine’s State Drugs Inspectorate. Following the inspections, 149 pharmacies within Ukraine were found not to meet requirements primarily due to substandard and counterfeit medicines and were shut down.

According to the NRCU report:

• About 20 percent of newly opened pharmacies had their licenses immediately revoked as soon as they were inspected.

• "Exactly those pharmacies are the potential and real sources of the spread of substandard and counterfeit medicines among the consumers", Inspectorate Chairman Oleksiy Soloviev said.

• The licensing procedures for new pharmacies were simplified in February of this year, causing a three-fold increase in the amount of pharmacies over the last eight months, according to the news source.

As adulterated, fraudulent and counterfeit medications continue to pour into the legitimate supply chain it becomes even more important for all members of the global pharmaceutical supply chain to deploy solutions and technologies to protect their inventories and the consumer from these deadly bogus drugs.

To read the SafeMedicines blog, visit: http://www.safemedicines.org/2010/09/ukraine-shut-down-149-illegal-pharmacies-in-first-half-of-2010.html.

To learn more about pharmaceutical anti-counterfeiting technologies, visit: http://www.xstreamsystems.net/.

USA Today: Growing Problem of Fake Drugs Hurting Patients, Companies

Counterfeit drugs made in Asia and other emerging markets are a growing problem that's endangering consumers' health and chipping away at drug companies' profits.

Kathy Chu in the Monday, September 13th issue of the USA Today writes an excellent story regarding the growing problem of counterfeit drugs globally. Ms. Chu cites some fresh industry statistics and pharmaceutical security insiders in her piece.

Here are some of the highlights from Ms. Chu’s USA Today article:

• Last year, nearly 1,700 incidents of counterfeit drugs were reported worldwide, triple the number in 2004, says the Pharmaceutical Security Institute (PSI), a group funded by drugmakers. Estimates for the size of the counterfeit drug market range from $75 billion to $200 billion a year. The market is likely much bigger because many cases are hard to detect.

• Fake drugs are a "money machine" whose sales are growing at twice the rate of legitimate pharmaceuticals, says Peter Pitts, president of the Center for Medicine in the Public Interest.

• A weak economy along with rising drug prices are likely leading consumers to seek out cheaper products online or from unauthorized providers, stoking demand for counterfeit drugs, says Bryan Liang, a board member at the Partnership for Safe Medicines. More than 50% of the medicine bought from certain illegal websites has been found to be fake, according to the World Health Organization.

• Scott Davis, a senior regional director in U.S. drug giant Pfizer’s global security division, believes it's not cheaper prices that drive consumers to counterfeit medicine, but their "lack of education and awareness of the dangers." Counterfeit medicine may include too much, too little or none of the ingredients found in the real product, causing injury and in extreme cases, death.

• Today, drug rings in Asia, particularly in China and India, are increasingly churning out fake versions of popular brands and generics, then selling them to consumers online or in the black market. PSI estimates that fake versions of about 800 pharmaceutical products were made last year.

• Counterfeiters are now able to fake drugs so well, even experts find it hard to distinguish the copies from the real deal. And they're able to replicate security devices such as holograms only a few months after pharmaceutical companies put these features on their packages.

• "You can make more money in counterfeit drugs than heroin," says Tom Kubic, CEO of PSI. "There's a major financial incentive for criminals because of the low risk of detection and prosecution."

• In many countries, penalties on fake drugmakers aren't strong enough to deter their illicit activities, says Lembit Rägo, coordinator for medicines quality and safety at the WHO. Countries including China, however, have stepped up their efforts related to detection and seizure of counterfeit drugs.

• Fake drugs also put pharmaceutical makers' profits at risk by diverting consumers away from the legitimate products, Liang says. While counterfeit drugs are more common in emerging economies, they also pose a threat to consumers in developed countries, such as the U.S., who are buying medicine online. "When the patient gets away from trusted sources, that's where I see the problem in the developed world," Davis says.

Huge profits, sophisticated criminals along with lax regulatory and legal penalties, make this the “perfect crime” that impacts the health and well being of entire populations often with deadly consequences.

This epidemic goes well beyond the unsophisticated supply chains of undeveloped nations, consumers all over the globe are unwittingly victims of this deadly act.

Pointed out in the article is the criminals ability to react to covert packaging protections, which means that they can easily fool basic Track and Trace technologies which currently comprises the majority of technologies used in defeating counterfeiters.

Secure Pharma Chain endorses authentication, as the most effective way in defeating counterfeiters and verifying that the products and inventories within the supply chain are genuine and safe for consumers to take.

To read the entire USA Today story, visit: http://www.usatoday.com/money/industries/health/2010-09-12-asia-counterfeit-drugs_N.htm.

To learn more about pharmaceutical authentication technologies, visit: http://www.xstreamsystems.net/.