Mobile Solution Defeats Counterfeit Drugs

The proliferation of counterfeit products, particularly in developing countries, is rapidly reaching epidemic levels.  According to the World Customs Organization, fake goods account for nearly 10 percent of worldwide trade, an estimated $500 billion annually. The counterfeit drug market alone is estimated at $200 billion.


Fake drugs are not regulated, and thus are particularly dangerous. In fact, the International Policy Network estimates that over 700,000 people die each year due to fake malaria and tuberculosis drugs alone – that is the equivalent of five jumbo jets filled with people crashing every single day.


The most obvious danger in counterfeit medicine is the use of toxic ingredients, such as pesticides, antifreeze, and even rat poison. Ingestion of these products can cause severe illness or death.


Another less evident danger is medication that includes incorrect doses of the drug’s active ingredient, if it is present at all. Incorrect doses can lead to the development of drug-resistant disease strains – which has been well documented in the case of malaria.


Many approaches to combat counterfeiting have been explored – with varying degrees of success. One approach, chemical testing, has yielded positive results.


Chemical tests evaluate products for authenticity in minutes and are very reliable.  Since the tests interact chemically with products, they are suitable for batch sampling only – not for testing each individual product. This makes the tests useful within the supply chain, but not at the consumer level or for smaller pharmacies.


Historically, strong anti-counterfeiting technologies have catered to the supply chain and retail levels. However consumers, who arguably stand to lose the most from counterfeits, have no other means of protecting themselves.


Ironically, the solution for such a complex, widespread problem may lie in a simple technological solution: mobile phones. A number of independent organizations have been exploring the use of mobile phones as a way to root out counterfeit products and the criminals producing and distributing them.


One such solution is being implemented by Sproxil. The company’s Mobile Product Authentication (MPA) solution empowers consumers to verify that the products they purchase are genuine simply by sending and receiving an SMS text.


The MPA technology is being used by pharmaceutical companies to curb the multi-billion dollar counterfeit drug industry. MPA is already being applied to products across other industries such as health and beauty, personal care, automotive aftermarket parts, agri-business and electrical products.


MPA uses two established solutions that are in abundance even in emerging markets: mobile phones and scratch cards.


Consumers can access the solution using any mobile phone. Before purchasing a product, consumers scratch a panel on Sproxil’s security label, revealing a one-time use code. They then text the code to a phone number on the package. Within seconds, the end user is notified, via text, of the result.


Alternatively, consumers can call a local call center to get results in their local language, use the MPA mobile app, or visit Sproxil.com to verify their product instantly.


Authorized manufacturers and distributors can access a web-based data visualization portal to view market information pertaining to their products, which can facilitate smarter data-driven business decision-making.


The technology can also be used as a track and trace solution. By establishing security checkpoints across the supply chain and authorizing only trusted agents to verify shipments, manufacturers and distributors gain greater transparency across their distribution networks. The track and trace solution can support a variety of mobile devices and scanners, ensuring that implementation is cost-effective and flexible.


The technology even creates a conduit of communication between manufacturer and consumer, thus opening up opportunities for important information exchange, such as medical adherence reminders, loyalty rewards programs, and product and brand messages.


While counterfeit products continue to endanger the lives of people who consume them, there is still hope: significant strides are being made to eradicate fake products.


Yet technology alone is incapable of winning the war against fakes; success requires strong concerted efforts between committed governments, manufacturers, distributors, and retailers. Consumer education and engagement are also crucial for fighting counterfeiting on all fronts.

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Published on July 15, 2015 15:55
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