anti-counterfeiting pharma 2015
TRANSCRIPT
ANTI-COUNTERFEITING PHARMA 201511-12 March 2015
DANIEL BENNETTCEO – YELLOW BRAND PROTECTION
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ABOUT YELLOW BRAND PROTECTION
• Detection and eradication of online counterfeiting and brand abuse.
• Online investigation, evidence collection, online enforcement..
• Swedish company, with presence in the UK, Africa and China.
• All key online channels: webstores, social media, mobile apps, and 650+ online market places world-wide
• Global ‘hot spot’ focus – language skills: Mandarin, Russian, Arabic, Spanish and Brazilian Portuguese.
• Particular strength in China - strong local partnerships with site owners, ISP’s and others.
• Consistent enforcement rate - e.g. AliBaba, Taobao, Facebook - at least 95%. We Stop at Zero.
BACKGROUND
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STATISTICS ON PHARMA
The global pharmaceutical
market is expected to reach sales of nearly $1.1 trillion in 2015
The NA market is responsible for 41% of the global spend
40% of global growth in the industry comes
from China
China and India control about 80% of the worlds drug
manufacturing
Generic drugs share of pharmaceutical
spending will rise to 39% in 2015, up from
20% in 2005
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COUNTERFEITThe definition of “counterfeit” has, over the years, been questioned in the pharmaceutical industry.
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SSFFC DRUGS
• Counterfeit drugs may be contaminated, contain improper ingredients, incorrect ratios of the proper ingredients or contain no active ingredients at all
• Different regulations for manufacturing and sale of drugs in different countries
• China and India – 70-80% of world’s drugs, also major hotspots for counterfeiting.
substandard/spurious/falsely-labelled/falsified/counterfeit
PHARMA ONLINE
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• Pharmacies began to appear during the Middle Ages
• In the 1870s, prescription medications were being sold via mail order
• 120 years later the first internet-based pharmacy launched in UK
• By the end of 1999 – 400 websites were selling medications
PHARMA ONLINEEvolution of sales channels
Traditional pharmacy
Postal order
Internet
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• The Internet has radically changed the approach towards commerce – modifying buyers’ attitudes
• Cheap prices, anonymity, practical convenience and a wider range of products
• Estimates as high as 700,000 deaths globally each year are caused by fake drugs (see link)
PHARMA ONLINEPeople will always want a good bargain – but are they willing to pay the price?
http://www.un.org/africarenewal/magazine/may-2013/counterfeit-drugs-raise-africa%E2%80%99s-temperature#sthash.Kfsh9NXT.dpuf
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PHARMA ONLINECanada
• It is common to state that pharmacies online are Canadian due to the lower prices in Canada
• Only 1 out of 10 sites claiming to be Canadian was actually Canadian
• Canada Pharmacy Med Online - Russian registrar, IP address Czech Republic- Fast and reliable shipping- Quality medications- No prescription required- Affordable prices
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• 111 countries participating in INTERPOL’s Pangea sting operation
• 11,000 illegal online pharmacies being shut down
• The removal of 19,000 ads for fake drugs on social media sites
• The seizure of 9.4 million doses of phony medicines
• Great result, but much more work is needed.. Potentially millions of illicit online market place listings..
PHARMA ONLINEAction! Operation Pangea
ONLINE SALES CHANNELS
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Where it all startedSALES CHANNELS – WEBSTORES
• 1999 – the first UK pharmacy (webstore) on the internet launches
• Historically the most common sales channel online
• Large volume of sales – but other sales channels are potentially larger threat
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• The trend
• Infringers harder to catch
• Immature market
• Exploding with sales
SALES CHANNELS – SOCIAL MEDIAOn the rise
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• This is the source of stock for many webstore owners
• B2B and B2C
• Predicted to become one of the major beneficiaries of the amendment on prescription drugs online
• Have long been able to act undisturbed due to the great focus on webstores
SALES CHANNELS – ONLINE MARKETPLACESEver growing..
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• Online marketplaces officially state that they have a policy against prescription drugs
• A zero result is common when searching the sites.
• Other search techniques uncovered 800 results that were ‘hiding’.
SALES CHANNELS – ONLINE MARKETPLACESBanned or not banned?
PHARMA IN CHINA
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PHARMA ONLINE – THE CHINESE MARKETChina’s lifting of online drug ban – gaining online retailers
Yesterday
• Online pharmacies restricted to selling only over counter medicines. Hospitals account for 70 % of precsription drugs.
Today• China’s drug
regulator lifts a long-term ban on companies selling prescription drugs online.
Tomorrow
• No one knows for sure. Estimated to open up a whole new market worth over 1 trillion yuan ($161 billion). Online only.
http://www.reuters.com/article/2015/01/09/us-china-pharmaceuticals-idUSKBN0KI0Y220150109
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PHARMA IN CHINAChinese chemicals – on the rise in the pharmaceutical industry
• Pharmaceutical ingredients exported from China are often made by chemical companies, neither certified nor inspected by Chinese drug regulators.
• About 70 to 80 percent of all active drug ingredients originate in China and India
• Substandard formulations often end up in pharmacies in developing countries and for sale on the Internet, where western buyers are turning for cheap medicine.
http://www.nytimes.com/2007/10/31/world/asia/31chemical.html?pagewanted=1&_r=3&
EXAMPLES
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• Hundreds of ads on the leading marketplaces
• Free sample
• Supply ability; 10,000 kilograms/month
• Location; Shanghai
• Claim to be certified by the FDA
Treatment of cancer, autoimmune diseases and medical abortions etc.METHOTREXATE
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• 95 ads on Alibaba
• MOQ; 1 Kilogram
• Supply ability; 1 Metric Ton
• Location; Guangzhou
• Claim to be certified
Anorectic drug withdrawn from the market due to potentially serious side effects.
RIMONABANT
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• An ad for empty bottles. “it is a bottle especially for Viagra”
• Company name; Dongfang Pharmaceutical Co. Ltd
• Have their own website
• ”Our products include raw materials, preparations, Chinese traditional drug, Health products, chemical agents, medical appliances etc”
Empty Viagra bottles..PACKAGING FOR SALE
St. James House13 Kensington SquareLondon W8 5HDUnited Kingdom+44 (0)20 8144 [email protected]
EUROPE ASIA AFRICARM 701, No. 288ChengjiaqiaoMinhang [email protected]
Presidential FloorMövenpick AmbassadorIndependence Avenue, RidgeAccra, Ghana+233 (0)506 437 [email protected]
Norrgatan 10432 38 VarbergSweden+46 (0)340 69 56 [email protected]
DANIEL [email protected]+44(0)7450 417147