pharmaceutical anti counterfeiting technologies 2014-2024

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Pharmaceutical Anti-counterfeiting Technologies: Market Analysis

2014-2024

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Contents

1.1 Market Highlights

1.2 Overview of the Report Content

1.3 Research and Analysis Methods

1.4 Glossary of Terms Related to Pharmaceutical Anti-counterfeiting Technologies

2.1 Drug Counterfeiting: A Thorn in the Side of the Pharma Industry

2.1.1 Regional Differences Hindering Information Exchange

2.1.2 Rising Counterfeiting Incidents in Developed Regions

2.2 The Most Commonly Counterfeited Drugs

2.3 Types of Counterfeit Drugs

2.3.1 Substandard Pharmaceutical Products as Counterfeits

2.3.2 Global Outsourcing of Active Pharmaceutical Ingredients (APIs)

2.3.2.1 Heparin Contamination

2.3.2.2 Stricter Enforcement needed for API Control

2.4 Why are Drugs Counterfeited?

2.4.1 Methods of Producing Pharmaceutical Counterfeits

2.4.2 Moving Counterfeits into the Pharmaceutical Supply Chain

2.4.3 Corruption Within the Pharmaceutical Distribution System

2.5 The Internet and its Role in Pharmaceutical Counterfeiting

2.5.1 Online Pharmacies: A Cheap Distribution System for Pharma Counterfeits

2.5.2 Legal Online Pharmacies: A Convenient and Quick Way of Dispensing Medication

2.5.3 Verifying the Authenticity of Online Pharmacies

2.6 Pharmaceutical Counterfeiting: The Global Costs

2.6.1 The Impact of Pharmaceutical Counterfeiting on Consumers

2.6.2 The Impact of Counterfeiting on Healthcare Providers

2.6.3 The Impact of Counterfeiting on Pharma Manufacturers

1. Executive Summary

2. Introduction to Pharmaceutical Counterfeiting

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Contents 2.6.4 The Impact of Pharmaceutical Counterfeiting on Governments

2.6.5 The Impact of Counterfeiting on the Global Pharmaceutical Industry

2.6.5.1 Operation Pangea: Europol’s Fight Against Counterfeiting

2.6.5.2 Legislative Deficiencies Aiding Counterfeiting Operations

2.7 Factors Fuelling Pharmaceutical Counterfeiting

2.7.1 An Erratic Supply or Shortage of Drugs Promotes Counterfeiting

2.7.2 Price Differentials and High Price Medicines Drive People to Cheaper Counterfeit

Alternatives

2.7.3 Drug Misuse Creates a Market for Counterfeiting

2.7.4 Trade through Free-Trade Zones/Free Ports Is an Important Route for Counterfeiters

2.7.5 The Trade of Pharmaceuticals through Several Intermediaries Helps Hide Counterfeit

Drugs

2.7.6 Counterfeiters Target Developed Markets

2.7.7 Parallel Trade – a Counterfeiting Route in Europe

3.1 Passive Technologies

3.1.1 Security Inks as Anti-counterfeiting Technologies

3.1.2 Holograms as Anti-counterfeiting Technologies

3.1.3 Visual Inspection as the First Line of Defence Against Drug Counterfeiting

3.1.4 Overt and Hidden Imaging

3.2 Active Technologies

3.2.1 Electromagnetic Tags – Radio Frequency Identification (RFID) as Anti-counterfeiting

Technologies

3.2.2 Taggants as Anti-counterfeiting Technologies

3.2.3 Mass Encoding Technology

3.2.3.1 Digital Mass Serialisation Technology (DMS)

3.2.3.2 Digital Mass Encryption (DME)

3.2.3.3 Barcode Applications: Serialisation is Key

3. Leading Technologies and Applications

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Contents

4.1 3M: A Diversified Technology Multinational

4.2 Alien Technology: RFID Technology Specialist

4.3 AlpVision: Cryptoglyph Security Solution

4.3.1 Fingerprint: A ‘Read Only’ Technology

4.3.2 Krypsos Platform

4.3.3 Cryptoglyph

4.3.4 AlpVision: Integration of Phone Applications Important for Future Growth

4.4 Angstrom Technologies – Security Inks

4.5 Authentix: Product Authentication and Brand Protection

4.5.1 Product-specific Track-and-Trace Solutions

4.5.2 Packaging Solutions

4.6 Avery Dennison: RFID Technologies Expert

4.7 Colorcon

4.7.1 Colorcon’s Taggants: On-Dose ID

4.7.2 Colorcon’s Brand Enhancement Service

4.8 Chesapeake: Acquired by The Caryle Group

4.9 Covectra

4.9.1 Covectra’s Authenti-Track System for Product Tracing

4.9.2 Covectra’s ControlTrack System for Combating Opioid Drug Diversion

4.10 Everest Holovisions

4.11 InkSure Technologies: Leader in Cloud-based Authentication

4.12 Intermec: A Workflow Performance Company

4.12.1 Automatic Information Data Capture

4.12.2 Will Recent Acquisitions Spell an Uncertain Future?

4.13 NanoGuardian

4.13.1 NanoCodes: Data Carriers of Limitless Potential

4. Leading Companies in the Pharmaceutical Anti-counterfeiting

Technologies Market

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Contents 4.13.2 NanoGuardian’s Global Licensing Agreement with Capsugel

4.13.3 The Closed-Loop Protection System

4.13.4 Major Players Showing Interest In NanoGuardian’s Technologies

4.14 ThermoFisher Scientific

4.14.1 Acquisition of Ahura Scientific

4.14.2 Continous Growth and Expansion into Emerging Markets

4.14.3 ThermoFisher Scientific’s TruScan Technology

4.15 TruTag Technologies

4.15.1 TruTag’s Silica Microtag Technology

4.16 UPM Raflatac

4.17 Zebra Technologies

5.1 Pharmaceutical Anti-counterfeiting Technologies: Market Overview

5.1.1 Size of the Pharmaceutical Anti-counterfeiting Technologies Market in 2012 and

2013

5.1.2 Global Pharmaceutical Anti-counterfeiting Technologies Market: Growth Trends

5.1.3 Global Pharmaceutical Anti-counterfeiting Technologies Market Forecast 2012-2017

5.1.4 Global Pharmaceutical Anti-counterfeiting Technologies Market Forecast 2017-2024

5.1.5 Changing Market Shares by Sector, 2012-2024

5.2 Pharmaceutical RFID Market Forecast 2012-2024

5.3 Pharmaceutical Security Printing Market Forecast 2012-2024

5.4 Pharmaceutical Taggants Market Forecast 2012-2024

5.5 Pharmaceutical Hologram/OVD Market Forecast 2012-2024

5.6 Other Pharmaceutical Anti-counterfeiting Technologies Market Forecast 2012-2024

5. Global Pharmaceutical Anti-counterfeiting Technologies Market

2014-2024

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Contents

6.1 Pharmaceutical Counterfeiting: A Global Conundrum

6.1.1 How Will National Market Shares Change to 2024?

6.2 Regional Pharmaceutical Anti-counterfeiting Market Forecast, 2014-2024

6.2.1 The US Market

6.2.2 EU5: Europe’s Leading Anti-counterfeiting Technology Markets

6.2.3 Japan: Uptake of Key Technologies Important for Market Growth

6.2.4 China: Set to See High Growth Rates Continue Until 2017

6.2.5 India: New Mandates will Help Deter Counterfeiters

6.2.5.1 Collaboration with the WHO will Help Regain Consumer Confidence in

Pharma Products

6.2.6 Brazil: South America’s Largest Pharmaceutical Market

6.2.7 Russia: Highest Per-Capita Spending on Healthcare of All the BRIC Nations

7.1 SWOT Analysis of the Pharmaceutical Anti-counterfeiting Technologies Market, 2014-2024

7.2 Strengths

7.2.1 Growing Interest from Pharmaceutical Companies in Tackling Counterfeiting

7.2.1.1 AstraZeneca

7.2.1.2 GlaxoSmithKline

7.2.1.3 Johnson & Johnson

7.2.1.4 Novartis

7.2.1.5 Pfizer

7.2.1.6 Sanofi

7.2.2 Organisations Promoting the Awareness and Implementation of Anti-Counterfeiting

Solutions

6. Leading National Markets 2014-2024

7. Issues Affecting the Pharmaceutical Anti-counterfeiting

Technologies Market

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Contents 7.2.2.1 Anti-counterfeiting and Product Protection Programme (A-CAPPP)

7.2.2.2 Anti-counterfeiting Group (ACG)

7.2.2.3 Brazil’s National Health Surveillance Agency (ANVISA)

7.2.2.4 Canadian Anti-counterfeiting Network (CACN)

7.2.2.5 Center for Healthcare Supply Chain Research

7.2.2.6 European Alliance for Access to Safe Medicines (EAASM)

7.2.2.7 European Federation of Pharmaceutical Industries and Associations (EFPIA)

7.2.2.8 International Anti-counterfeiting Coalition (IACC)

7.2.2.9 International Authentication Association (IAA)

7.2.2.10 The Pharmaceutical Security Institute (PSI)

7.2.3 Track-and-Trace Solutions Boosting Supply Chain Efficiency

7.2.4 New Technologies Providing More Comprehesive Anti-Counterfeiting Protection

7.2.5 Litigation Proceedings over Counterfeit Products Affecting Profitability

7.3 Weaknesses

7.3.1 The Lack of Standardisation Across the Industry as a Whole Will Impede Technology

Adoption

7.3.2. Insufficient Quantitative Measurement of the Effectiveness of Anti-counterfeiting

Technologies

7.3.2.1 Complexity of Factors Influencing Drug Revenue Makes Quantifying

Commercial Impact of Anti-counterfeiting Technologies Difficult

7.3.3 Technology Reliability and the Ease of Integration into Manufacturing Processes

7.3.4 Lack of Cooperation Between Various Governmental Organisations Aids Drug

Counterfeiters

7.4 Opportunities

7.4.1 Constantly Evolving Technologies Allows for Product Innovation

7.4.2 Anti-counterfeiting Technologies for the Prevention of Online Fraud

7.5 Threats

7.5.1 The High Volume of Counterfeiting Activities Could Devalue Anti-counterfeiting

Solutions

7.5.2 Developing Countries Lack Infrastructure to Effectively Deal with Counterfeiting

7.5.3 Pace of Innovation May Not Keep up with the Counterfeiters

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Contents 7.6 STEP Analysis of the Pharmaceutical Anti-counterfeiting Technologies Market, 2014-2024

7.6.1 Social Factors

7.6.1.1 The Weak Enforcement of Legislation

7.6.1.2 Corruption: A Hindrance to Eradicating Pharmaceutical Counterfeiting

7.6.1.3 Changing Public Perception and Consumer Education

7.6.1.4 Concerns Over Information Privacy

7.6.2 Technological Factors

7.6.2.1 Smartphone Read and Verify: A Customer Empowerment Tool

7.6.2.2 US FDA’s Counterfeit Detection Device

7.6.2.3 UV and IR Inks Being Used Covertly for Increased Security

7.6.2.4 Bokode: A Potential Replacement for Barcodes?

7.6.2.5 SigNature DNA

7.6.3 Economic Factors

7.6.3.1 Implementation Costs of Anti-counterfeiting Technologies

7.6.3.2 Anti-counterfeiting Technologies Require R&D Investment

7.6.4 Political Factors

7.6.4.1 World Health Organization: The IMPACT Programme

7.6.4.2 Anti-Counterfeiting Trade Agreement (ACTA)

7.6.4.3 The Fagan Civil Case: Effects of Litigation on Players in the Drug Supply

Chain

7.6.4.4 Legislations for Supply Chain Security

7.6.4.5 E-pedigree: A Catalyst for Product Serialisation

7.6.4.5.1 E-pedigree: Challenges Involved in Implementation

7.6.4.5.2 EU and the US: Differing Supply Chain Authentication

7.6.4.6 UK MHRA: Falsified Medical Products Strategy

7.6.4.7 The EU’s Falsified Medicines Directive

8.1 Interview with Dr Fred Jordan, Chief Executive Officer, AlpVision

8. Expert Opinions

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Contents 8.1.1 Current State of Counterfeiting in the Pharmaceutical Industry

8.1.2 AlpVison’s Key Technologies and Strategies for Combating Counterfeiters

8.1.3 The Future of Anti-counterfeiting Technologies

8.1.4 On Whom do the Responsibilities for Counterfeiting Prevention Lie?

8.1.5 The Major Barriers Facing Implementation of Anti-counterfeiting Technologies

8.1.6 Future Growth Drivers of the Anti-counterfeiting Technologies Market

8.2 Interview with a Spokesperson from a Leading Anti-counterfeiting Technologies Company

Based in the US.

8.2.1 On the Threats Posed by Counterfeit Products

8.2.2 Keeping Up with the Counterfeiters: An Impossible Task?

8.2.3 Duty of Care

8.2.4 DNA Technology: The Innovation Needed to Defeat Counterfeiting?

8.2.5 Future Prospects of the Pharma Anti-counterfeiting Industry

9.1 The Pharmaceutical Anti-counterfeiting Technologies Industry 2014-2024

9.2 Government Mandates Will Fuel Growth in the Market

9.3 The US Will Continue to Dominate the Market

9.4 New Directives Will Ensure Track-and-Trace Market Leadership

9.5 European Preference for Mandated 2D Barcode Technology

9.6 Improved Regulation of Online Pharmacies Necessary for Anti-counterfeiting Technologies to

be Effective

9.7 Market Expansion Will be Dependent on the Development of Industry-Wide Standards for the

Use of the Available Technologies

9. Conclusion

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Contents

Table 2.1 Global Reported Incidents of Drug Counterfeiting, 2008-2012

Table 2.2 Classification of Counterfeit Pharmaceutical Products

Table 3.1 Anti-counterfeiting Technologies Used in the Pharmaceutical Industry

Table 3.2 Leading Anti-counterfeiting Security Ink Manufacturers, 2013

Table 3.3 Leading Anti-counterfeiting Holographic Labelling Manufacturers, 2013

Table 3.4 Leading Radio Frequency Identification (RFID) System Manufacturers, 2013

Table 3.5 Leading Pharmaceutical Taggants Manufacturers, 2013

Table 4.1 3M: Revenue ($m) and Revenue Shares (%) by Business Segment, 2012

Table 4.2 Alien Technologies: Types of RFID Readers Produced, 2013

Table 4.3 AlpVision: Products and Applications, 2013

Table 4.4 Angstrom Technologies: Products and Applications, 2013

Table 4.5 Avery Dennison: Revenue ($m) and Revenue Shares (%) by Business Segment, 2012

Table 4.6 Avery Dennison: RFID Products for Use in Pharmaceuticals, 2013

Table 4.7 Colorcon: Product Groups, Sub-groups, and Examples 2013

Table 4.8 Everest Holovision: Products and Applications, 2013

Table 4.9 InkSure Technologies: Products and Applications, 2013

Table 4.10 InkSure Technologies: Historical Revenue ($m, AGR %) 2009-2012

Table 4.11 Intermec: Product Lines and Descriptions, 2013

Table 4.12 Intermec: Historical Revenue ($m, AGR %) 2009-2012

Table 4.13 ThermoFisher Scientific: Historical Revenue ($bn) 2009-2012

Table 4.14 ThermoFisher Scientific: Revenue Shares (%) by Region, 2012

Table 4.15 UPM Raflatac: Product Groups and Descriptions, 2013

Table 4.16 Zebra Technologies: Product Groups and Descriptions, 2013

Table 4.17 Zebra Technologies: Historical Revenue ($m, AGR%) 2009-2012

Table 5.1 The Global Pharmaceutical Anti-counterfeiting Technologies Market: Revenues ($m) and

Market Shares (%) by Sector, 2012

Table 5.2 The Global Pharmaceutical Anti-counterfeiting Technologies Market: Revenue Forecast

($m, AGR%, CAGR%) by Sector, 2012-2017

Table 5.3 The Global Pharmaceutical Anti-counterfeiting Technologies Market: Revenue Forecast

List of Tables

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Contents ($m, AGR%, CAGR%) by Sector, 2017-2024

Table 5.4 The Global Pharmaceutical Anti-counterfeiting Technologies Market: Revenue ($m) by

Sector, 2012, 2017, 2024

Table 5.5 The Global Pharmaceutical Anti-counterfeiting Technologies Market: Market Shares (%)

by Sector, 2012, 2017, 2024

Table 5.6 RFID: Revenue Forecast ($m, AGR%, CAGR%), 2012-2024

Table 5.7 Security Printing: Revenue Forecast ($m, AGR%, CAGR%), 2012-2024

Table 5.8 Pharmaceutical Taggants: Revenue Forecast ($m, AGR%, CAGR%), 2012-2024

Table 5.9 Holograms/OVD: Revenue Forecast ($m, AGR%, CAGR%), 2012-2024

Table 5.10 Other Technologies: Revenue Forecast ($m, AGR%, CAGR%), 2012-2024

Table 6.1 The Global Pharmaceutical Anti-counterfeiting Technologies: Revenue Forecast ($m,

AGR%, CAGR%) by Region, 2012-2017

Table 6.2 The Global Pharmaceutical Anti-counterfeiting Technologies: Revenue Forecast ($m,

AGR%, CAGR%) by Region, 2017-2024

Table 6.3 The Global Pharmaceutical Anti-counterfeiting Technologies Market: Market Shares (%)

by Region, 2012, 2017, 2024

Table 6.4 US Pharmaceutical Anti-counterfeiting Market: Revenue Forecast ($m, AGR%, CAGR%),

2012-2024

Table 6.5 EU5 Pharmaceutical Anti-counterfeiting Market: Revenue Forecast ($m, AGR%, CAGR%),

2012-2024

Table 6.6 Japanese Pharmaceutical Anti-counterfeiting Market: Revenue Forecast ($m, AGR%,

CAGR%), 2012-2024

Table 6.7 Chinese Pharmaceutical Anti-counterfeiting Market: Revenue Forecast ($m, AGR%,

CAGR%), 2012-2024

Table 6.8 Indian Pharmaceutical Anti-counterfeiting Market: Revenue Forecast ($m, AGR%,

CAGR%), 2012-2024

Table 6.9 Brazilian Pharmaceutical Anti-counterfeiting Market: Revenue Forecast ($m, AGR%,

CAGR%), 2012-2024

Table 6.10 Russian Pharmaceutical Anti-counterfeiting Market: Revenue Forecast ($m, AGR%,

CAGR%), 2012-2024

Table 7.1 SWOT Analysis of the Pharmaceutical Anti-counterfeiting Technologies Industry, 2014-

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Contents 2024

Table 7.2 Selected Instances of Counterfeiting Activities, 2012-2013

Table 7.3 Selected Instances of Counterfeiting Activities, 2009-2011

Table 7.4 STEP Analysis for the Pharmaceutical Anti-counterfeiting Technologies Industry, 2014-

2024

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Contents

Figure 2.1 Global Reported Incidents of Drug Counterfeiting, 2008-2012

Figure 2.2 Flow Chart of the Route Taken by Counterfeit Pharma Products Entering the Legal

Supply Chain

Figure 3.1 Holograms Anti-counterfeiting Technologies: Drivers and Restraints, 2014-2024

Figure 3.2 Basic Components of a RFID System

Figure 3.3 RFID Anti-counterfeiting Technologies: Drivers and Restraints, 2014-2024

Figure 3.4 Taggants Anti-counterfeiting Technologies: Drivers and Restraints, 2014-2024

Figure 3.5 Barcode Anti-counterfeiting Technologies: Drivers and Restraints, 2014-2024

Figure 4.1 3M: Revenue Shares (%) by Business Segment, 2012

Figure 4.2 Authentix’s Global Monitoring Service: A Three Step Program

Figure 4.3 Avery Dennison: Revenue Shares (%) by Business Segment, 2012

Figure 4.4 InkSure Technologies: Historical Revenue ($m) 2009-2012

Figure 4.5 Intermec: Historical Revenue ($m) 2009-2012

Figure 4.6 ThermoFisher Scientific: Historical Revenue ($bn) 2009-2012

Figure 4.7 ThermoFisher Scientific: Revenue Shares (%) by Region, 2012

Figure 4.8 Zebra Technologies: Historical Revenue ($m) 2009-2012

Figure 5.1 The Global Pharmaceutical Anti-counterfeiting Technologies Market: Revenues ($m) by

Sector, 2012

Figure 5.2 The Global Pharmaceutical Anti-counterfeiting Technologies: Revenue Forecast ($m),

2012- 2017

Figure 5.3 The Global Pharmaceutical Anti-counterfeiting Technologies Market: Revenue Forecast

($m), 2017-2024

Figure 5.4 The Global Pharmaceutical Anti-counterfeiting Technologies Market: Revenue ($m) by

Sector, 2012, 2017, 2024

Figure 5.5 The Global Pharmaceutical Anti-counterfeiting Technologies Market: Market Shares (%)

by Sector, 2012


by Sector, 2017


List of Figures

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Contents by Sector, 2024

Figure 5.8 RFID: Revenue Forecast ($m), 2012-2024

Figure 5.9 Security Printing: Revenue Forecast ($m), 2012-2024

Figure 5.10 Pharmaceutical Taggants: Revenue Forecast ($m), 2012-2024

Figure 5.11 Holograms/OVD: Revenue Forecast ($m), 2012-2024

Figure 5.12 Other Technologies Revenue Forecast ($m), 2012-2024

Figure 6.1 US and EU5 Pharmaceutical Anti-counterfeiting Technologies: Revenue Forecast ($m),

2012-2024

Figure 6.2 China, India, Brazil and Russia Pharmaceutical Anti-counterfeiting Technologies Market:

Revenue Forecast ($m), 2012-2024


by Region, 2012


by Region, 2017


by Region, 2024

Figure 6.6 US Pharmaceutical Anti-counterfeiting Market: Revenue Forecast ($m), 2012-2024

Figure 6.7 EU5 Pharmaceutical Anti-counterfeiting Market: Revenue Forecast ($m), 2012-2024

Figure 6.8 Japanese Pharmaceutical Anti-counterfeiting Market: Revenue Forecast ($m), 2012-

2024

Figure 6.9 Chinese Pharmaceutical Anti-counterfeiting Market: Revenue Forecast ($m), 2012-2024

Figure 6.10 Indian Pharmaceutical Anti-counterfeiting Market: Revenue Forecast ($m), 2012-2024

Figure 6.11 Brazilian Pharmaceutical Anti-counterfeiting Market: Revenue Forecast ($m), 2012-

2024

Figure 6.12 Russian Pharmaceutical Anti-counterfeiting Market: Revenue Forecast ($m), 2012-2024

Figure 7.1 EU Supply Chain Authentication Strategy, 2013

Figure 7.2 US Supply Chain Authentication Strategy, 2013

Figure 9.1 Global Pharmaceutical Anti-counterfeiting Market: RFID, Security Printing,

Holograms/OVD, and Taggants Revenue Forecast ($m), 2012-2024

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Contents

3M

Adhesives Research

Ahura Scientific

Alien Technologies

AlpVision

Altegrity Risk International

American Academy of Pediatrics (AAP)

American Express

AmerisourceBergen

Angstrom Technologies

Anti-Counterfeiting and Product Protection Programme (A-CAPPP)

Anti-Counterfeiting Group (ACG)

Apoteket

Applied DNA Sciences

ARmark Authentication Technologies LLC

AstraZeneca

Australian Therapeutic Goods Administration (TGA)

Authentix

Automation

Avery Dennison

Axway

Baxter

Canadian Anti-Counterfeiting Network (CACN)

Capsugel

Cellular Bioengineering Inc.

Center for Healthcare Supply Chain Research

Center for Medicine in the Public Interest (US)

CFC International

Organisations Mentioned in this Report

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Contents Chesapeake

Colorcon

Cortegra

Covectra

Digital China

Directorate General of Foreign Trade [India]

Domino

Drugs Standard Control Organisation

DuPont

European Alliance for Access to Safe Medicines (EAASM)

European Commission

European Directorate for the Quality of Medicines and Healthcare (EDQM),

European Federation of Pharmaceutical Industries and Associations (EFPIA)

European Medicines Agency

Europol

Everest Holovisions

GlaxoSmithKline (GSK)

Google

Healthcare Distribution Management Association (HDMA)

Heart UK

Hologram Industries

Holomex

HOMAI (hologram manufactures association of India)

Honeywell International

Image Solutions

Impinj Inc

Ingenia Technology

InkSure Technologies

Intermec/ Interface Mechanisms

International Anti-counterfeiting Association (IAA)

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Contents International Anti-Counterfeiting Coalition (IACC)

International Federation of Pharmaceutical Manufacturers & Associations (IFPMA)

International Ink Company

International Medical Products Anti-Counterfeiting Taskforce (IMPACT)

International Policy Network

Interpol

Japanese Pharmaceutical Manufacturers Association (JPMA)

Johnson & Johnson

Kodak

Loughborough University

LaserLock

Massachusetts Institute of Technology (MIT)

MasterCard

Medicines and Healthcare products Regulatory Agency (MHRA)

Medicrime Convention Council

Menasha Corporation

MicroTag Temed Ltd

Microtrace Solutions

Motorola

NanoGuardian

NanoInk Inc.

Nanotech Security Corp.

National Agency for Food and Drug Administration and Control (NAFDAC) [Nigeria]

National Association of Boards of Pharmacy (NABP)

National Health Surveillance Agency (ANVISA)

Neri Labels

Novartis

Novavision

OEP Technologie BV

One Equity Partners

OpSec Security

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Contents Organisation for Economic Co-operation and Development (OECD)

Pacific Holographics

Paralec Inc

Partner for Safe Medicines (PSM) India

Pera Innovations

Pfizer

Pharmaceutical Research and Manufacturers of America (PhRMA)

PharmaSecure

Quality Brands Protection Committee (QBPC) [China]

Reckitt Benckiser

Roche

Royal Pharmaceutical Society of Great Britain (RPSGB)

Sanofi

Savi Technology

ScanSource

Scientific Protein Laboratories (SPL)

SICPA

Siemens

Smartrac

South Dakota School of Mines and Technology

State Food and Drug Administration (SFDA) [China]

Sun Chemical

Symbol Technologies

Systech

Tagsys RFID

Teva Pharmaceuticals

Texas Instruments

The Caryle Group

The International Hologram Manufacturers Association

The Patients Association (UK)

The Pharmaceutical Security Institute (PSI)

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Contents ThermoFisher Scientific

TruTag Technologies

United Nations

University of South Dakota

UPM

UPM Kymmene

UPM Raflatac

UPM Rafsec z

US Center for Safe Internet Pharmacies (CSIP).

US Food and Drugs Agency (FDA)

US Pharmacopeial Convention (USP)

Visa

Vocollect Inc

Voxtel

Webscan

World Customs Organization

World Health Organization (WHO)

World Intellectual Property Organization (WIPO)

Zebra Technologies

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Pharmaceutical Anti-counterfeiting Technologies: Market Analysis 2014-2024

Passive RFID tags operate without a separate external power source and obtain operating power

generated from the reader. Passive tags are consequently much lighter than active tags, less

expensive, and offer a virtually unlimited operational lifetime. The trade off is that they have shorter

read ranges than active tags and require a higher-powered reader. Read-only tags are typically

passive and are programmed with a unique set of data (usually 32 to 128 bits) that cannot be

modified. Read-only tags most often operate as a licence plate into a database, in the same way

as linear barcodes reference a database containing modifiable product-specific information.

Figure 3.3 RFID Anti-counterfeiting Technologies: Drivers and Restraints, 2014-2024

The significant advantage of all types of RFID systems is the fact that authentication can be done

remotely as the technology does not require contact between reader and tag (Figure 3.3). Tags

can be read through a variety of substances such as snow, fog, ice, paint, dirt and other visually

and environmentally challenging conditions, where barcodes or other optically read technologies

would be useless. RFID tags can also be read in challenging circumstances at high speeds, in

most cases responding in less than 100 milliseconds. The read/write capability of an active RFID

system is also a significant advantage in interactive applications such as work-in-process or

maintenance tracking. Although it is a costlier technology (compared with barcodes), RFID has

become indispensable for a wide range of automated data collection and identification applications.

Table 3.4 summarises the leading global manufacturers of RFID tags.

Source: Visiongain 2013

• Supply chain tracking capabilities, now promoted by many regulatory authorities

• High level of security against

duplication • Tags can be read at distance

• Wireless capabilities means identification is possible without the need to physically see the tag

Drivers Restraints

• RFID tags may contain personal

information – potential for exposure of personal information

• Generally a high cost technology • Requirement for specialized

readers • Reliability, radio waves are

deflected or impeded by certain materials interfering with signals

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Table 4.16 Zebra Technologies: Product Groups and Descriptions, 2013

Technology Sector Description

For UHF RFID and HF RFID in the supply chain and for other applications

Encoded smart labels are printable labels embedded with an ultra-thin radio frequency transponder. Information encoded in these transponders can then be read and modified by a radio frequency reader. These labels eliminate the need of a visual ID of a barcode, as the ID signal is transmitted by radio frequency

Falls under the branch of location solutions, software and hardware are used to locate, track, manage, and improve operational functions

Zebra’s location solutions include asset tags, call tags, sensors, exciters and application software.

Active RFID products include, DartTag, WhereTag and WhereCall, incorporating various Real Time Locating System (RTLS) technologies based on ultra-wide band (UWB), WhereNet and Wi-Fi active RFID

Thermal barcode technology

Barcode printers with thermal-transfer and direct thermal technology produce accurate, high-quality images.

Passive RFID

Active RFID

The company operates within two branches – printing operations and location solutions. Within

these branches the company’s product range consists of direct thermal and thermal transfer label

and receipt printers, passive radio frequency identification (RFID) printer/encoders and dye

sublimation card printers. They also sell specialty supplies consisting of self-adhesive labels,

thermal transfer ribbons, thermal print-heads, batteries and other accessories, including software

for label design and printer network management. Some of the technology branches and their

applications are detailed in Table 4.16.

It is difficult to estimate the company’s contribution to the pharmaceutical anti-counterfeiting sector

because operations are spread over a range of industries. However, it is clear that Zebra

Technologies is an industry leader in printing solutions to identify, authenticate, track-and-trace

products. The company’s revenue in 2012 was $996.2m, which represents an increase of 1.3%

from the previous year (Table 4.17 and Figure 4.8).

Source: Zebra Technologies 2013, Visiongain 2013

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Table 5.9 Holograms/OVD: Revenue Forecast ($m, AGR%, CAGR%), 2012-2024

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Hologram/OVD ($m) 80.7 85.5 90.6 97.9 105.7 113.1 121.0 127.1 133.4 140.1 148.5 155.9 162.2Annual Growth (%) 6 6 8 8 7 7 5 5 5 6 5 4CAGR (% 2012-2017 & 2017-2024) 7.0 5.3CAGR (% 2012-2024) 6.0

Figure 5.11 Holograms/OVD: Revenue Forecast ($m), 2012-2024

Holograms and optically variable devices fall into the category of overt technologies. Although they

offer a relatively easy platform of anti-counterfeiting technology to implement – low cost and ease

in which they can be applied, in recent years the risk of imitation has risen. Visiongain believes that

potential security breaches and the strong growth of track-and-trace technologies (traditionally not

holograms/OVD) will ultimately slow the growth of hologram/OVD market and reduce its market

share. However, overall the hologram market will continue to see slow growth. Like most other

sub-markets, growth in the pharmaceutical holograms market will be driven by pharmaceutical

80.7

85.5 90.6

97.9 105.7

113.1 121.0

127.1 133.4

140.1 148.5

155.9 162.2

0

20

40

60

80

100

120

140

160

180

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Rev

enue

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www.visiongain.com


8. Expert Opinions

8.1 Interview with Dr Fred Jordan, Chief Executive Officer, AlpVision In October 2013, visiongain interviewed Dr Fred Jordan (FJ), the chief executive officer of

AlpVision. Topics discussed include AlpVision’s key technologies and the advancements in anti-

counterfeiting technologies, the increasing sophistication of counterfeiting criminals, and the main

barriers and threats facing the implementation of anti-counterfeiting technologies.

We thank Dr Jordan for his time and opinion.

8.1.1 Current State of Counterfeiting in the Pharmaceutical Industry Visiongain: How severe would you say the counterfeiting situation is within the pharmaceutical

industry, and how do you see this changing in the next decade?

FJ: Judging as a technology provider based on the number of requests we get from the

pharmaceutical industry, if you take the top 50 pharmaceutical companies, I don’t know of any of

these companies who have absolutely no anti-counterfeiting efforts; so all of them are doing

something at some level. There are some exceptions for pharma companies who are only

manufacturing generics. Looking at the interests of these companies gives an extent of the severity

of the problem.

Visiongain: Based on the information you have, where in the globe do you think the biggest

counterfeiting threats lie?

FJ: I don’t know where the biggest threat is, but what I know is from which companies we get the

most requests. These are mainly European and US based companies.

8.1.2 AlpVison’s Key Technologies and Strategies for Combating

Counterfeiters Visiongain: Could you give us an insight into AlpVision’s key technologies, especially those

geared towards combating pharmaceutical anti-counterfeiting?

FJ: Firstly, all the technologies that we have are dedicated to combating counterfeiting. We have

two technologies: one is a printed technology which is appropriate for labels and packages. The

other technology is for moulded plastic like caps, bottles, syringes and other moulded items. These

are both used in the pharma field.