Counterfeiting, Diversion, Corruption

Pharmaceuticals are low-volume items with high specific value, this makes them attractive for criminals who are using different “business models” to benefit from global or national trade in pharmaceuticals at the expense of civil society:

• Counterfeiting in the form of introducing fake drugs into the commercial chain, meaning with no active substance or an inappropriate amount of active substance, in the worst case even with a toxic substance
• Stealing drugs from warehouses, trucks or pharmacies and re-selling them for profit
• Diverting drugs that have been donated or procured at a low price for a specific aid program and re-selling them in the private market, in the same country or another country, for profit
• Influencing purchasing decisions with “facilitating payments”, with a negative impact on consumer prices or public budgets

Regulatory and monitoring system need to be set up in a way that it becomes more difficult for criminals to pursue their activities. Simplicity, transparency, unpredictable control schedules, sanctions and sensitization/education of all people involved in handling pharmaceuticals are some of the principles that help control the damage done by criminal activity.

For further study

International Pharmaceutical Association Statement: http://www.fip.org/pdf/counterfeitmedicines2003.pdf

WHO Project on Counterfeit and Substandard Medicines:
http://www.who.int/medicines/organization/qsm/activities/qualityassurance/cft/counterfeit_info.shtml

German Pharma Health Fund:
http://www.gphf.org/web_en/projekte/minilab/hintergrund_arzneimittelfaelschungen.htm
http://www.gphf.org/web_en/projekte/minilab/index.htm

Pharmaceutical Security Institute:
http://www.psi-inc.org/