New York Times Op/Ed: Are You Buying Illicit Drugs?

In a New York Times Op/Ed published on March 31st, author Katherine Eban and Aaron Graham, former DEA Agent write about the recent pharmaceutical thefts and how this trend is made possible by “our haphazardly regulated pharmaceutical supply chain and the dangerous gray market that intersects it.”

According to the Op/Ed, “As soon as medicines leave manufacturers' loading docks, they enter a market teeming with middlemen, many legitimate, but some not. The drugs may move through a dozen hands, through small secondary wholesalers and repackagers. With so many middlemen involved, thieves can easily unload stolen drugs, which may be resold to pharmacies and hospitals and dispensed."

Ms. Eban and Mr. Graham then go onto detail to describe some of the more egregious recent incidents of pharmaceutical theft, diversion and counterfeiting.

Ultimately Ms. Eban and Mr. Graham conclude that the most effective way to deal with this growing epidemic which threatens the healthcare of consumers everywhere is through technologies that Track and Trace drugs throughout the supply chain. While Track and Trace technologies are important, they are limited in their effectiveness in that they were initially designed and implemented as inventory management tools. Basically these tools tell the supply chain where the box has been.

We at Secure Pharma Chain Blog believe that while it is important to know where the drug has been, ultimately knowing what is inside the box properly protects both the supply chain and the consumer. Track and Trace technologies require a comprehensive and complex, daisy chain of data flow while Authentication Technologies like XStream Systems’ XT250 can tell you what is inside the box and if it is safe to consume without maintaining an elaborate transaction pedigree.

The best solution is a multi-layered approach of a variety of solutions that thwart the opportunity for criminal organizations to profit from their deadly activities.

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

To read the New York Times Op/Ed, visit: http://www.nytimes.com/2010/04/01/opinion/01eban.html?scp=1&sq=%2b%22Food+and+Drug+Administration%22&st=nyt.

Eli Lilly Loses $75M in Warehouse Burglary

In an update to a blog posted to Securing Pharma Chain Blog, more details are becoming public in the reported burglary of a drug warehouse in Enfield, Connecticut on early Sunday morning.

The warehouse, operated by Eli Lilly & Company, lost approximately $75 million dollars in prescription drugs after thieves scaled a wall onto the roof of the building and rappelled inside.

The thieves made off with enough drugs to fill at least one tractor trailer and apparently were loading pallets of product into waiting vehicles at the site's loading dock for over an hour.

The suspects disabled phone lines, back up security systems and access programs as they made their way into the building. Apparently they were aided in their efforts by a strong rainstorm, the leading edge of a nor’easter, which help conceal much of their activity.

The stolen drugs are described by a Lilly spokesperson as “a mixture of pharmaceutical products” including Prozac, Cymbalta and Zyprexa. No narcotics or pain medications were stored in this warehouse.

Federal authorities have been brought into the investigation to assist State and Local law enforcement.

The theft is being described as the work of a well planned, sophisticated and organized criminal group.

The issue of pharmaceutical theft energizes the need for material screening of products within the supply chain, from manufacturer to dispenser, to properly protect consumers everywhere.

To learn more about solutions to protect the pharmaceutical supply chain, visit: http://www.xstreamsystems.net/.

Pharmaceutical Warehouse Burglary

Freightwatch International reported this morning in an email message about a pharmaceutical warehouse burglary which occurred early Saturday morning (March 13th).

An unknown number of suspects entered into pharmaceutical warehouse in Enfield, Connecticut by cutting phone lines and going through the roof of the warehouse entering into the telecommunications room of the facility. The suspects then disabled the backup alarm and access control systems.

The initial loss estimate is $76 million dollars.

According to Freightwatch:

· The M.O. of this burglary is consistent with the pharmaceutical warehouse burglary that occurred last year in Richmond, Virginia.
· FreightWatch recommends that all companies with warehousing operations ensure redundant communication systems are in place, including motion detection and immediate response protocols around the communications, alarms and access control systems.

The issue of pharmaceutical theft energizes the need for material screening of products within the supply chain, from manufacturer to dispenser, to properly protect consumers everywhere.

FreightWatch International is an industry leader in providing cargo theft intelligence through data collection, analysis, and customized reporting

You can view this report and other cargo theft intelligence by visiting the FreightWatch Intelligence Portal: http://www.freightwatchintl.com/intelligence_portal.

US Cargo Theft: A 2009 Review

A comprehensive report on Cargo Theft within the United States in 2009.

FreightWatch International, an industry leader in providing cargo theft intelligence through data collection, analysis, and customized reporting, has published its 2009 review of cargo theft within the United States breaking it down by commodity type, date, locations, modus operandi and specific product.

This report, authored by Dan Burges summarizes the United States’ theft data base collected in 2009 and analyzes trends derived from database content, law enforcement information and industry personnel. It also examines observations by personnel in the field.

Here is some of the more interesting content from the report as it relates to pharmaceutical thefts, the complete report can be found at http://www.freightwatchusa.com/.

· In 2009, Freightwatch recorded an average of 72 cargo theft incidents per month, 859 theft incidents total, a 12% increase from 2008.

· By volume, pharmaceuticals represented 5% of the theft incidents in 2009 with 46 reported incidents. This was identical to the 2008 reported number.

· California, Florida and Texas topped the list of high-risk cargo theft states in 2009. Georgia, Illinois and Pennsylvania were in the second top tier of states for cargo theft.

· Even though pharmaceuticals only make up 5% of all cargo theft by volume, the average pharmaceutical theft was valued at $4 million. Even when eliminating the large $37 million theft in one incident in Pennsylvania in 2009, the average pharmaceuticals theft would value $2.5 million, easily surpassing the other commodity groups.

· According to Chuck Forsaith of the Pharma Cargo Security Coalition, his group recorded 16 cargo losses valued over $500,000 in 2008. Of those 16 losses, five were eventually recovered, representing 32% and $16 million. In 2009, his group recorded 15 losses valued at more than $500,000. Of those, there were 10 recoveries, representing 66% and $74.2 million.

To learn more about technologies that can be used by companies to authenticate and verify materials inside their unit of sale container without destruction or degradation visit http://www.xstreamsystems.net/.

November 2009 Pharmaceutical Cargo Theft Report

Freightwatch International, an industry leader in providing cargo theft intelligence through data collection, analysis, and customized reporting, released its November 2009 cargo theft report.

There have been 64 cargo theft events for the month of November. There were three documented incidents of pharmaceutical theft which included H1N1 Vaccines, OTC Medications and Infant Formula.

Two months ago FreightWatch noted that cargo theft incidents are occurring from terminal and carrier lots, as well as public access parking lots. This trend has continued through November, where almost 45% of known theft locations were in terminal or carrier lots, in lieu of truck stops (approximately 20%), which are traditionally where cargo theft is known to occur in the highest amounts volume

These trends coincides with intelligence reports and activity that show cargo thieves are becoming more organized and proactive in targeting specific loads or products, conducting surveillance and stealing the loads at their first opportunity.

Members of the pharmaceutical supply chain should be aware of the incidents of pharmaceutical cargo thefts and the overall safety and security implications. XStream Systems encourages manufacturers, distributors and dispensers to utilize a variety of tools and solutions including EDXRD screening to secure, authenticate and verify that the inventories and products within their control are authenticate and safe. Nefarious sources of supply are known to infiltrate the legitimate supply chain with fraudulent, adulterated and counterfeit medications which impact the safety, security and efficacy of supply to healthcare consumers.

To see the November 2009 report, visit Freightwatch International’s site at: www.freightwatchintl.com.

To learn more about XStream Systems supply chain security solution visit our site at: www.xstreamsystems.net.