The 14th Annual Pharma Anti-Counterfeiting, Serialization, and Supply Chain Security Conference recently brought together industry experts to tackle the ever-growing threat of pharmaceutical counterfeiting. This year’s event shed light on the complexity of counterfeiting, its vast financial impact globally, and the proactive measures that can be taken to secure the pharmaceutical supply chain.

The global counterfeiting crisis

Counterfeiting is recognized as the largest criminal enterprise globally, with annual sales of counterfeit and pirated goods reaching up to $4.5 trillion, according to US Patent and Trademark Office. This staggering figure underscores the magnitude of the problem affecting the pharmaceutical industry and various sectors worldwide. Counterfeit pharmaceuticals pose significant risks to consumer safety, brand reputation, and company revenue. Adopting disciplined methodologies to counter these threats can help protect pricing margins, market share, and intellectual property rights.

Understanding the gray market

One of the critical issues discussed was the gray market, where up to 30% of products in various markets are diverted [Data source: Gray Hunter | Product | True Pedigree]. This unauthorized distribution channel allows counterfeit products to infiltrate legitimate supply chains, making it imperative for companies to adopt robust anti-counterfeiting strategies.

Challenges in brand security

The conference highlighted several common challenges in brand security:

• Complexity: Ensuring brand security is a multifaceted problem.
• Ownership: Often, there is no clear ownership of the issue within companies.
• Problem Definition: The extent of the problem is often poorly understood by stakeholders.
• Cost of Inaction: Many companies perceive the cost of taking action as an added expense rather than an investment.

Securing the supply chain: A five-step approach

The conference presented a structured five-step approach to secure the pharma supply chain:

• Risk mitigation planning: Identifying products at high risk for disruption and implementing plans to mitigate these risks.
• Cross-functional teams: Involving subject matter experts to form the right team.
• Defined Processes and Procedures: Standardized program delivery to help ensure consistency.
• Comprehensive technology stack: Leveraging advanced technology for protection.
• Continuous monitoring: Regularly addressing gaps and risks with strategic actions.

Assessing risk

A critical aspect of securing the supply chain is understanding the current state of risk. It involves:

•  Historical incident data analysis
•  Internal alignment and benchmarking
•  Assessing product characteristics, manufacturing processes, and distribution channels

Leveraging technology

The use of technology is pivotal in closing the gap in the supply chain. Solutions that leverage existing packaging can be deployed quickly, offering immediate value. Covert technologies, which are unseen by bad actors, provide a highly secure layer of protection, enabling real-time detection of suspect products and forensic intelligence to address root problems.

Monitoring and continuous improvement

Continuous monitoring is essential for maintaining real-time oversight of exposure to high-risk entities and product traceability issues. This proactive approach can help companies act swiftly when problems arise, ensuring maximum value from brand protection investments.

Conclusion

The 14th Annual Pharma Anti-Counterfeiting, Serialization, and Supply Chain Security Conference emphasized the need for a comprehensive and proactive approach to combating counterfeiting. By understanding the current state of risks, leveraging technology, and adopting a disciplined methodology, pharmaceutical companies can protect their brands, help ensure consumer safety, and secure their supply chains against the ever-evolving threat of counterfeiting.