A Growing Global Problem
The opening of markets and the creation of common economic areas, modern types of trade such as the globalisation of the pharmaceutical industry, parallel trading and the opportunity to buy all kinds of pharmaceuticals via the World Wide Web have broadened the scope for the criminal activities of counterfeiters.
Scale of counterfeit medicines
The extent of counterfeiting is difficult to quantify. According to a study by the WHO conducted for the period 1982 to 1999, it can be estimated that about 7% to 10 % of all medicines in the global distribution chain are counterfeits. In 70% of all known cases the counterfeit products appear in developing countries. In some of these countries about 50% of all medicines could be faked. In the developed countries the percentage of fake drugs is estimated to be less than 1%.
Figures in a WHO Fact sheet from 2006 indicate that 50% of medicines purchased over the internet from sites that conceal their physical address are counterfeit.
The US based Center for Medicine in the Public Interest predicts that counterfeit drug sales will reach USD 75 billion globally in 2010, an increase of more than 90% since 2005.
WHO at the 61st World Health Assembly in 2008 reported that the number of incidents detected in 2007 increased over 1.500, on average of more than four cases a day, roughly a 20% increase over 2006.
Key drivers of counterfeiting
- Monetary gain
The gain of easy money is the main driver for counterfeiters. Manufacturing costs are very low if no quality and safety standards are respected. - Minimal sanctions and inadequate enforcement
Fines and sanctions against counterfeits are very limited. There is therefore no major deterrence provided by law. - Low capacity to uncover and punish counterfeiters.
- Ineffective cooperation among stakeholders
Health authorities, customs, police, industry and trade need to establish effective co-operation and exchange of information in order to quickly detect and stop counterfeiters. - Lack of awareness
Ignorance of the risks of counterfeit medicines among health professionals and patients hinders detection and reporting, even when patients experience treatment failure or adverse reactions. - Lack of political will
In some countries, authorities are hardly prepared to recognise the existence of the problem or to pursue counterfeiters. Export interests prevail. - Transactions involving many intermediaries
Extensive pharmaceutical supply chains of 20 parties and more increase opportunities for counterfeiters to infiltrate the regulated distribution system. - Expansion and deregulation of trade
The expansion and deregulation of trade offers greater opportunities to introduce fake products into official channels.
