New York Times - Millions Disappear With Fake Technology

In probably one of the more creative and egregious examples of war profiteering in a war that has hundreds of examples of waste, corruption and excess, the New York Times writes about the now infamous ADE 651 "technology".

Basically the technology known as ADE 651, which is a hand-held wand, wielded by Iraq’s security teams at hundreds of checkpoints, is supposed to detect car bombs and weapons. However this technology which is a battery-free device — supposedly powered by the static electricity of a soldier’s body — turns out to be a very expensive hoax.

After widespread doubts, including warnings by American military officials who never used ADE 651's, Britain finally banned the devices’ export and arrested the manufacturer for fraud. But not before Iraq bought more than 800 wands, which cost $250 each to make but drew up to $60,000 each from the Baghdad government.

This boondoggle cost the Iraqi government $48 million, most of which probably came directly or indirectly from the US taxpayers.

The ridiculously obvious hoax is very frustrating to many within the technology sector who are developing very real and useful technologies that can be used in security, industrial and consumer applications.

The question is, how can such a crude and obviously fraudulent tool, fool an entire process, while very useful technologies, languish for years as they slog through a bureaucratic procurement process that seemingly rewards inaction over innovation?

Apparently greed and corruption in certain situations have little to impede their progress...

To read the New York Times Editorial, visit:

http://www.nytimes.com/2010/02/01/opinion/01mon4.html?th&emc=th


To learn more about a very real and effective technology that is being deployed around the globe that will protect millions, visit: http://www.xstreamsystems.net/.

COMBATING THE SPREAD OF FAKE DRUGS

In the June 28, 2009 Online Issue Daily Policy Digest, the National Center for Policy Analysis highlights a very relevant policy document titled, "Keeping It Real: Combating the Spread of Fake Drugs in Poor Countries" by Julian Harris, Philip Stevens and Julian Morris of the International Policy Network.

XStream endorses the primary assertion that one of the most effective ways in combating this international problem is for the private sector of the pharmaceutical supply chain to take advantage of its innovative capacity to experiment with various technological solutions that enable it to protect the identity of its products. Members of the pharmaceutical supply chain need to utilize a variety of technologies, like XStream’s XT250 solution which allows the end user to verify and authenticate medications inside its sealed manufacturer’s unit of sale container without destroying or degrading the material.

The text of the Daily Policy Digest review on "Keeping It Real":

Counterfeit and substandard drugs are a serious and growing problem around the world -- especially in less developed countries. These fake drugs pose three direct threats to patients: failure to provide effective treatment; adulteration with toxic chemicals, often leading to death or injury; and if a drug contains some active ingredient but too little to kill all the disease agents, it can lead to the emergence of drug resistant strains of disease.

These problems are caused in large part by a combination of defective legal systems and government-imposed distortions of the pharmaceuticals market, say researchers at the International Policy Network:

Poor countries tend to have highly inefficient, slow and expensive legal systems, which makes it very difficult for people to be assured of the quality of the medicines they purchase.

Lack of enforceable trademarks and civil liability are instances of a wider problem; in such an environment, legal decisions tend to be arbitrary and designed to benefit the elite.

Price control measures, like tariffs, on imported medicines are very common in poor countries and drive up the price of high quality medicines creating opportunities for suppliers of fakes, who can then more easily undercut them.

Tariffs can also lead to unnecessary delays in ports, where improper storage conditions can cause drugs degrade.

However, bolstering the rule of law is a long term process in many countries. In the short-term, the private sector should take advantage of its innovative capacity to experiment with various technological solutions that enable it to protect the identity of its products. Governments, meanwhile, should reduce those interventions which undermine the supply of quality drugs, such as taxes, tariffs, price controls and other arbitrary regulations, say researchers.

Source: Julian Harris, Philip Stevens and Julian Morris, "Keeping it Real: Combating the spread of fake drugs in poor," International Policy Network, 2009.

The National Center for Policy Analysis (NCPA) is a nonprofit, nonpartisan public policy research organization, established in 1983. The NCPA's goal is to develop and promote private alternatives to government regulation and control, solving problems by relying on the strength of the competitive, entrepreneurial private sector.

To read the entire piece by Harris, Stevens and Morris, follow the link below:
http://policynetwork.net/uploaded/pdf/keeping_it_real_2009.pdf

Khaleej Times: No Country Immune to Menace of Counterfeit Medicines

The following story from the Khaleej Times Online, outlines the overall issue and fight against fake drugs in the UAE. The story in full appears below:

Khaleej Times Online
23 April 2009

DUBAI - Though counterfeit drugs are not readily available in the UAE, they still exist since dealing in fake medicines can be lucrative, say experts.

“In the UAE we don’t see too much, but counterfeit medicines are definitely available. It will always be there. There is big money to be made from dealing in counterfeit medicines and there will always be people who try to exploit this, even if it is at the expense of someone’s life,” he said.

“We are looking at different technologies in the fight against counterfeit medicine,” said Dr Mohammed Abu Elkhair, Head, Pharma/Medicine and Medical Products Regulation Section, Abu Dhabi Health Authority (HAAD).

Providing quality pharmaceutical products to the public is a priority for the health ministries across the region.

“The problem of counterfeit drugs is relevant in the Middle East without being a major cause for concern,” Minister of Health Humaid Mohammed Obaid Al Quttami said while inaugurating the Pharmaceutical and Biotechnology Middle East (PABME) congress and exhibition on Tuesday.

He said the issue is less about fake drugs and more about regulating the market. “Legislation has an important part to play,” he added.

The newly formed Saudi Food and Drug Authority (SFDA) in the Kingdom of Saudi Arabia is also aware of the need to maintain a watch over the trade in counterfeit medicines.

Ibrahim Alshowaier, Consultant, SFDA, indicated that a proactive approach should yield best results.

“Counterfeit drugs are a big problem all over the world. It’s not big in Saudi Arabia, but this doesn’t mean we’re immune from the problem. We’re working closely with pharmaceutical companies, the customs people and the police to tackle this issue and maintain vigilance,” he said.

“We’re actively taking measures to block the traffic of counterfeit drugs. For example, we advise customs and the police about what to specifically look for, and we’ll have SFDA personnel operating at border controls and working with the customs officials there. We see this as preventive, and the best way to proceed, rather than targeting the counterfeits once they’re already here,” he added.

However, the UAE Health Minister placed training in the forefront of developing life sciences, specifically the pharmaceutical industry, in
the country.

“The challenges we face in this area are the quality of the industry, and this includes the quality of our human resources available,” he said.

“The people working in this industry need high levels of training, and I think with training, we need to see international practices adopted that will allow us to see solutions developed.

“The pharmaceutical industry will add value to the health services in the country and the region. The economy will benefit also. By providing access to the right level of training, this will be achieved.”

asmaalizain@khaleejtimes.com

Will the FDA’s China Office Protect US Consumers?

The Washington Post, New York Times, Bloomberg News and a variety of other media outlets all have stories today announcing the Food and Drug Administration (FDA) deploying staff and opening its first office in Beijing, China.

This is the FDA’s reaction to China’s increasing role as a major exporter to the United States in food, drug and consumer products. Unfortunately China is also the world leader in exporting counterfeit, adulterated and contaminated products and the FDA is attempting to slow down the dangerous impact to US consumers. Recent high profile examples of counterfeit, adulterated and contaminated products include the recent heparin contamination which resulted in over 250 deaths in the US, the pet food contamination with melamine and the huge issue over lead paint on children’s toys. Most experts agree that these examples of toxic products within our consumer supply chain represent only a fraction of the dangerous products that are reaching our shores on a daily basis.

Apparently the FDA has plans this year to open up other offices throughout China and certify third-party inspectors who can approve and qualify the safety of exports to the United States.

The question is when will the FDA deploy a materials analysis technology that can look inside product packaging to inspect and protect the US consumer instead of throwing bodies at a high expense to attempt to catch the problem before it gets into our supply chain?

Stay tuned, we at XStream Systems are trying our best to introduce our revolutionary technology as a solution to catching the problem before it impacts our nations health.

Track and Trace versus Inspection and Authentication Technologies?

In a comparison of Track and Trace versus Inspection and Authentication technologies it is apparent that Track and Trace solutions such as RFID, bar coding, holograms, tracing and pedigree products are not a one-size-fits-all solution to protecting the domestic and global pharmaceutical supply chain.

Track and Trace products might be sufficient, when employed throughout the Supply Chain to protect it from Drug Diversion which is one source of counterfeit activity, but these Track and Trace technologies cannot provide full protection for the product within the package. For example, how can anyone expect a Track and Trace product to determine if, either in the manufacturing or distribution process, the wrong ingredient was purposely or accidentally added into the product? Pedigree or Serialization may help, after a threat has propagated to the general public and was detected by other means, to help backtrack to the source of the problem. But by then it may be too late and the consumer will have already suffered.…

Only through the use of Inspection and Authentication technology such as XStream Systems’ XT250 Pharmaceutical Authentication System can those within the drug supply chain immediately inspect and authenticate the product within the container. Don’t let problems reach the general public. Stop the issues in their tracks.

For more information on XStream Systems and the XT250™ Pharmaceutical Authentication System, visit their website at www.xstreamsystems.net.

Drug Verification Technology to be Presented

XStream Systems, Inc. is scheduled to present our technology and pharmaceutical industry applications at a symposium in Orlando, Florida. The Seventh Pharmaceutical Powder X-Ray Diffraction Symposium (PPXRD-7) will take place February 25-28, 2008 at the Florida Hotel and Conference Center.

The title of the oral presentation to be given is “EDXRD Probe for Pharmaceutical Verification.” While speaking, Dr. Noureddine Anibou will discuss the importance of pharmaceutical verification and give an explanation of XStream Systems’ technology and its documented accuracy rates.

Here's a link to the conference's website: http://www.icdd.com/ppxrd/
...and a link to view a .pdf of the presentation: EDXRD_Probe-Pharmaceutical_Verification.pdf