Pharmaceutical Anti-Counterfeiting Technologies Market Analysis 2015-2025

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Contents

1. Report Overview

1.1 Pharmaceutical Anti-counterfeiting Technologies Market Highlights

1.2 World Pharmaceutical Anti-counterfeiting Technologies Market Breakdowns by Technology

and Region

1.3 Why You Should Read This Report

1.4 How This Report Delivers

1.5 Key Questions Answered by This Analytical Report

1.6 Who is This Report For?

1.7 Methodology

1.8 Frequently Asked Questions (FAQ)

1.9 Associated Visiongain Reports

1.10 About Visiongain

2. Introduction to Pharmaceutical Counterfeiting

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 Worldwide Counterfeiting Incidents

2.1.3 Highest Counterfeiting Incidents in Asia and Europe in 2013

2.2 What are 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

1. Report Overview

2. Introduction to Pharmaceutical Counterfeiting

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Contents

2.3.2.2 Stricter Enforcement needed for API Control

2.4 Why are Drugs Counterfeited?

2.5 Methods of Producing Pharmaceutical Counterfeits

2.5.1 Moving Counterfeits into the Pharmaceutical Supply Chain

2.5.2 Corruption Within the Pharmaceutical Distribution System

2.6 The Internet and Its Role in Pharmaceutical Counterfeiting

2.6.1 Online Pharmacies: A Cheap Distribution System for Pharma Counterfeits

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

2.6.3 Verifying the Authenticity of Online Pharmacies

2.7 Pharmaceutical Counterfeiting: The Global Costs

2.7.1 The Impact of Pharmaceutical Counterfeiting on Consumers

2.7.2 The Impact of Counterfeiting on Healthcare Providers

2.7.3 The Impact of Counterfeiting on Pharma Manufacturers

2.7.4 The Impact of Pharmaceutical Counterfeiting on Governments

2.7.5 The Impact of Counterfeiting on the Global Pharmaceutical Industry

2.8 Operation Pangea: Europol’s Fight Against Counterfeiting

2.8.1 Legislative Deficiencies Aiding Counterfeiting Operations

2.9 Factors Fuelling Pharmaceutical Counterfeiting

2.9.1 An Erratic Supply or Shortage of Drugs Promotes Counterfeiting

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

Alternatives

2.9.3 Drug Misuse Creates a Market for Counterfeiting

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

2.9.5 The Trade of Pharmaceuticals through Several Intermediaries Helps Hide Counterfeit

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Contents

Drugs

2.9.6 Counterfeiters Target Developed Markets

2.9.7 Parallel Trade – a Counterfeiting Route in Europe

2.10 Leading Anti-counterfeiting Technologies and Applications

2.10.1 Passive Anti-counterfeiting Technologies

2.10.1.1 Holograms

2.10.1.2 Security Inks

2.10.1.3 Overt and Hidden Imaging

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

2.10.2 Active Anti-counterfeiting Technologies

2.10.2.1 Radio Frequency Identification (RFID)

2.10.2.1 Taggants

2.10.3 Mass Encoding Technologies

2.10.3.1 Digital Mass Serialisation Technology (DMS)

2.10.3.2 Digital Mass Encryption (DME)

2.10.3.3 Barcodes

3. Pharmaceutical Anti-counterfeiting Technologies: World Market

2015-2025

3.1 World Pharmaceutical Anti-counterfeiting Technologies Market in 2013 and 2014

3.1.1 Breakdown of the World Pharmaceutical Anti-counterfeiting Technologies Market by

Technology in 2013 and 2014

3.2 World Pharmaceutical Anti-counterfeiting Technologies Market: Sales Forecast 2015-2025

3.2.1 World Pharmaceutical Anti-counterfeiting Technologies Market: Sales Forecast 2013-

3. Pharmaceutical Anti-counterfeiting Technologies: World Market

2015-2025

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Contents

2019

3.2.2 World Pharmaceutical Anti-counterfeiting Technologies Market: Sales Forecast 2019-

2025

3.3 RFID Lead the World Pharmaceutical Anti-counterfeiting Technologies Market

3.4 Market Attractiveness Forecasts of Leading Pharmaceutical Anti-counterfeiting Technologies

in 2019 and 2025

3.5 How Will Segmental Market Shares Change to 2025?

3.6 World Pharmaceutical Anti-counterfeiting Technologies Market: Drivers and Restraints

2015-2025

4. Leading National Markets 2015-2025

4.1 Geographical Breakdown of the World Pharmaceutical Anti-counterfeiting Technologies

Market in 2013 and 2014

4.2 World Pharmaceutical Anti-counterfeiting Technologies Market: National Markets Forecast

2015-2025

4.2.1 Market Attractiveness Forecasts of Leading Pharmaceutical Anti-counterfeiting

National Markets in 2019 and 2025

4.2.1.1 Market Attractiveness Forecasts of Developed Countries in 2019 and 2025

4.2.1.2 Market Attractiveness Forecasts of Emerging Countries in 2019 and 2025

4.2.2 How Will National Market Shares Change to 2025?

4.3 US Pharmaceutical Anti-counterfeiting Technologies Market in 2013 and 2014

4.3.1 US Pharmaceutical Anti-counterfeiting Technologies Market Forecast 2015-2025

4.3.2 US Pharmaceutical Anti-counterfeiting Technologies Market: Trends and

Developments

4. Leading National Markets 2015-2025

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Contents

4.3.2.1 Drug Supply Chain Security Act of 2013

4.4 EU5 Pharmaceutical Anti-counterfeiting Technologies Market in 2013 and 2014

4.4.1 EU5 Pharmaceutical Anti-counterfeiting Technologies Market Forecast 2015-2025

4.4.2 EU5 Pharmaceutical Anti-counterfeiting Technologies Market: Trends and

Developments

4.4.2.1 EU Enforcement of Drug Serialisation by 2016

4.5 Japanese Pharmaceutical Anti-counterfeiting Technologies Market in 2013 and 2014

4.5.1 Japanese Pharmaceutical Anti-counterfeiting Technologies Market Forecast 2015-2025

4.5.2 Japanese Pharmaceutical Anti-counterfeiting Technologies Market: Trends and

Developments

4.5.2.1 Japan’s Uptake of Anti-counterfeiting Technologies

4.6 Chinese Pharmaceutical Anti-counterfeiting Technologies Market in 2013 and 2014

4.6.1 Chinese Pharmaceutical Anti-counterfeiting Technologies Market Forecast 2015-2025

4.6.2.1 Chinese Anti-Counterfeiting Measures From Past to Present

4.7 Indian Pharmaceutical Anti-counterfeiting Technologies Market in 2013 and 2014

4.7.1 Indian Pharmaceutical Anti-counterfeiting Technologies Market Forecast 2015-2025

4.7.2 Indian Pharmaceutical Anti-counterfeiting Technologies Market: Trends and

Developments

4.7.2.1 Collaboration with the WHO will Help Regain Consumer Confidence in Pharma

Products

4.8 Brazilian Pharmaceutical Anti-counterfeiting Technologies Market in 2013 and 2014

4.8.1 Brazilian Pharmaceutical Anti-counterfeiting Technologies Market Forecast 2015-2025

4.8.2 Brazilian Pharmaceutical Anti-counterfeiting Technologies Market: Trends and

Development

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Contents

4.8.2.1 Brazilian Anti-Counterfeiting Measures From Past to Present

4.9 Russian Pharmaceutical Anti-counterfeiting Technologies Market in 2013 and 2014

4.9.1 Russian Pharmaceutical Anti-counterfeiting Technologies Market Forecast 2015-2025

4.9.2 Russian Pharmaceutical Anti-counterfeiting Technologies Market: Trends and

Developments

4.9.2.1 Russian Anti-Counterfeiting Measures From Past to Present

4.10 Mexican Pharmaceutical Anti-counterfeiting Technologies Market in 2013 and 2014

4.10.1 Mexican Pharmaceutical Anti-counterfeiting Technologies Market Forecast 2015-

2025

4.10.2 Mexican Pharmaceutical Anti-counterfeiting Technologies Market: Trends and

Developments

4.10.2.1 Mexico Signs the ACTA

5. Pharmaceutical Barcodes Market 2015-2025

5.1 Barcodes as Anti-counterfeiting Technology

5.2 Pharmaceutical Barcodes Market in 2013 and 2014

5.3 Pharmaceutical Barcodes Market: Sales Forecast 2015-2025

5.4 Pharmaceutical Barcodes Market: Drivers and Restraints 2015-2025

6. Pharmaceutical RFID Market 2015-2025

6.1 RFID as Anti-counterfeiting Technology

6.2 Pharmaceutical RFID Market in 2013 and 2014

6.3 Pharmaceutical RFID Market: Sales Forecast 2015-2025

5. Pharmaceutical Barcodes Market 2015-2025

6. Pharmaceutical RFID Market 2015-2025

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Contents

6.4 Pharmaceutical RFID Market: Drivers and Restraints 2015-2025

6.4.1 Driver: Benefits of RFID Track-and-Trace in the Pharma Industry

6.4.2 Driver: Brand Protection and Prevention of Revenue Loss

6.4.3 Restraint: Threat of Information Leakage with Passive RFID Tags

6.4.4 Restraint: High Initial Outlay of RFID Systems

7. Pharmaceutical Taggants Market 2015-2025

7.1 Taggants as Anti-counterfeiting Technology

7.1.1 Types of Taggants and Their Authentication Methods

7.2 Pharmaceutical Taggants Market in 2013 and 2014

7.3 Pharmaceutical Taggants Market: Sales Forecast 2015-2025

7.4 Pharmaceutical Taggants Market: Drivers and Restraints 2015-2025

8. Pharmaceutical Holograms/OVD Market 2015-2025

8.1 Holograms/OVD as Anti-counterfeiting Technology

8.2 Pharmaceutical Holograms/OVD Market in 2013 and 2014

8.3 Pharmaceutical Holograms/OVD Market: Sales Forecast 2015-2025

8.4 Pharmaceutical Holograms/OVD Market: Drivers and Restraints 2015-2025

8.5 Other Pharmaceutical Anti-counterfeiting Technologies Market: Sales Forecast 2015-2025

8. Pharmaceutical Holograms/OVD Market 2015-2025

7. Pharmaceutical Taggants Market 2015-2025

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Contents

9. Leading Companies in the Pharmaceutical Anti-counterfeiting

Technologies Market

9.1 Leading Pharmaceutical Anti-counterfeiting Technology Manufacturers by Segment in 2014

9.2 3M At a Glance

9.2.1 3M: Pharma Anti-counterfeiting Technology Portfolio

9.3 Alien Technology At a Glance

9.3.1 Alien Technology: Pharma Anti-counterfeiting Technology Portfolio

9.3.2 Alien Technology: Recent Developments

9.3.2.1 New Partnership and Securing Investments

9.3.2.2 New Products Launch

9.4 AlpVision At a Glance

9.4.1 AlpVision: Pharma Anti-counterfeiting Technology Portfolio

9.4.3 AlpVision: Recent Developments

9.4.3.1 Integration of Phone Applications Important for Future Growth

9.5 Angstrom Technologies At a Glance

9.5.1 Angstrom Technologies: Pharma Anti-counterfeiting Technology Portfolio

9.6 Authentix At a Glance

9.6.1 Authentix: Pharma Anti-counterfeiting Technology Portfolio

9.6.1.1 Product-specific Track-and-Trace Solutions

9.6.1.2 Packaging Solutions

9.7 Avery Dennison At a Glance

9.7.1 Avery Dennison: Pharma Anti-counterfeiting Technology Portfolio

9.7.2 Avery Dennison: Financial Overview

9. Leading Companies in the Pharmaceutical Anti-counterfeiting

Technologies Market

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Contents

9.8 Colorcon At a Glance

9.8.1 Colorcon: Pharma Anti-counterfeiting Technology Portfolio

9.8.1.1 Colorcon’s Taggants: On-Dose ID

9.8.2 Colorcon: Recent Developments

9.8.2.1 Investing For the Future in South Asia

9.9 Covectra At a Glance

9.9.1 Covectra: Pharma Anti-counterfeiting Technology Portfolio

9.9.1.1 Covectra’s Authenti-Track System for Product Tracing

9.9.1.2 Covectra’s ControlTrack System for Combating Opioid Drug Diversion

9.9.2 Covectra: Recent Developments

9.9.2.1 Establishing European Presence

9.10 Everest Holovisions At a Glance

9.11 InkSure Technologies At a Glance

9.11.1 InkSure Technologies: Pharma Anti-counterfeiting Technology Portfolio

9.11.2 InkSure Technologies: Financial Overview

9.11.3 InkSure Technologies: Recent Developments

9.11.3.1 InkSure Completes Purchase Agreement to Sell Assets

9.12 Intermec At a Glance

9.12.1 Intermec: Pharma Anti-counterfeiting Technology Portfolio

9.12.2 Intermec: Financial Overview

9.12.3 Intermec: Recent Developments

9.12.3.1 Acquisition of Intermec by Honeywell

9.13 Multi Packaging Solutions At a Glance

9.13.1 MPS: Pharma Anti-counterfeiting Technology Portfolio

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Contents

9.13.2 MPS: Recent Developments

9.13.2.1 MPS’s Mergers and Acquisitions

9.14 ThermoFisher Scientific At a Glance

9.14.1 ThermoFisher Scientific: Pharma Anti-counterfeiting Technology Portfolio

9.14.1.1 ThermoFisher Scientific’s TruScan Technology

9.14.2 ThermoFisher Scientific: Financial Overview

9.14.3 ThermoFisher Scientific: Recent Developments

9.14.3.1 ThermoFisher Scientific’s Mergers and Acquisitions

9.15 TruTag Technologies At a Glance

9.15.1 TruTag Technologies: Pharma Anti-counterfeiting Technology Portfolio

9.15.1.1 TruTag’s Silica Microtag Technology

9.15.2 TruTag Technologies: Recent Developments

9.15.2.1 Investment from WuXi PharmaTech

9.16 UPM Raflatac At a Glance

9.16.1 UPM Raflatac: Pharma Anti-counterfeiting Technology Portfolio

9.16.2 UPM Raflatac: Recent Developments

9.16.2.1 Smartrac Takeover of UPM Raflatac’s RFID Business

9.17 Zebra Technologies At a Glance

9.17.1 Zebra Technologies: Pharma Anti-counterfeiting Technology Portfolio

9.17.2 Zebra Technologies: Financial Overview

9.17.3 Zebra Technologies: Recent Developments

9.17.3.1 Zebra Acquire Enterprise Business from Motorola Solutions

9.17.3.2 Zebra Acquire Hart Systems

9.17.3.3 Zebra Launch of Zatar

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Contents

10. Qualitative Analysis of the Pharmaceutical Anti-counterfeiting

Technologies Market 2015-2025

10.1 SWOT Analysis of World Pharmaceutical Anti-counterfeiting Technologies Market 2015-

2025

10.2 Strengths

10.2.1 Growing Interest from Pharmaceutical Companies in Tackling Counterfeiting

10.2.1.1 AstraZeneca

10.2.1.2 GlaxoSmithKline (GSK)

10.2.1.3 Johnson & Johnson (J&J)

10.2.1.4 Novartis

10.2.1.5 Pfizer

10.2.1.6 Sanofi

10.2.2 Organisations Promoting Awareness and Implementation of Anti-counterfeiting

Solutions

10.2.2.1 Anti-counterfeiting and Product Protection Programme (A-CAPPP)

10.2.2.2 Anti-counterfeiting Group (ACG)

10.2.2.3 Brazil’s National Health Surveillance Agency (ANVISA)

10.2.2.4 Canadian Anti-counterfeiting Network (CACN)

10.2.2.5 Centre for Healthcare Supply Chain Research

10.2.2.6 European Alliance for Access to Safe Medicines (EAASM)

10.2.2.7 European Federation of Pharmaceutical Industries and Associations (EFPIA)

10.2.2.8 International Anti-counterfeiting Coalition (IACC)

10.2.2.9 International Authentication Association (IAA)

10. Qualitative Analysis of the Pharmaceutical Anti-counterfeiting

Technologies Market 2015-2025

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Contents

10.2.2.10 Pharmaceutical Security Institute (PSI)

10.2.3 Track-and-Trace Solutions Boosting Supply Chain Efficiency

10.2.4 New Technologies Providing More Comprehensive Anti-counterfeiting Protection

10.2.5 Litigation Proceedings over Counterfeit Products Affecting Profitability

10.3 Weaknesses

10.3.1 Lack of Standardisation Across the Industry Will Impede Technology Adoption

10.3.2 Insufficient Quantitative Measurement of the Effectiveness of Anti-counterfeiting

Technologies

10.3.2.1 Complexity of Factors Influencing Drug Revenue Makes Quantifying

Commercial Impact of Anti-counterfeiting Technologies Difficult

10.3.3 Technology Reliability and the Ease of Integration into Manufacturing Processes

10.3.4 Lack of Cooperation Between Governmental Organisations Aid Drug Counterfeiters

10.4 Opportunities

10.4.1 Constantly Evolving Technologies Allows for Product Innovation

10.4.2 Anti-counterfeiting Technologies for the Prevention of Online Fraud

10.5 Threats

10.5.1 High Volume of Counterfeiting Activities Could Devalue Anti-counterfeiting Solutions

10.5.2 Developing Countries Lack Infrastructure to Effectively Deal with Counterfeiting

10.5.3 Rate of Innovation May be Outpaced by Counterfeiters

10.6 STEP Analysis of World Pharmaceutical Anti-counterfeiting Technologies Market 2015-

2025

10.7 Social Factors

10.7.1 Weak Enforcement of Legislation

10.7.2 Corruption: A Hindrance to Eradicating Pharmaceutical Counterfeiting

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10.7.3 Changing Public Perception and Consumer Education

10.7.4 Concerns Over Information Privacy

10.8 Technological Factors

10.8.1 Smartphone Read and Verify: A Customer Empowerment Tool

10.8.2 US FDA Counterfeit Detection Device

10.8.3 UV and IR Inks Being Used Covertly for Increased Security

10.8.4 Bokode: A Potential Replacement for Barcodes?

10.8.5 SigNature DNA

10.9 Economic Factors

10.9.1 Implementation Costs of Anti-counterfeiting Technologies

10.9.2 Anti-counterfeiting Technologies Require R&D Investment

10.10 Political Factors

10.10.1 WHO: The IMPACT Programme

10.10.2 Anti-Counterfeiting Trade Agreement (ACTA)

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

10.10.4 Legislations for Supply Chain Security

10.10.5 E-pedigree: Catalyst for Product Serialisation

10.10.5.1 E-pedigree: Challenges Involved in Implementation

10.10.5.2 EU and US: Differing Supply Chain Authentication

10.10.6 UK MHRA: Falsified Medical Products Strategy

10.10.7 EU’s Falsified Medicines Directive

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Contents

11. Research Interviews

11.1 Interview with Representatives of Zebra Technologies

11.1.1 Zebra’s Key Technologies and Strategies for Combating Counterfeiters

11.1.2 Country of Largest Counterfeiting Threat

11.1.3 Size and Growth Rate of the Current Pharmaceutical Anti-counterfeiting Technologies

Market

11.1.4 Drivers of the Pharmaceutical Anti-counterfeiting Market

11.1.5 Barriers Facing Implementation of Anti-counterfeiting Technologies by Pharma

Companies

11.1.6 Most Promising Upcoming Anti-counterfeiting Technology in the Next Decade

11.1.7 Opportunities for Pharma Anti-counterfeiting Technologies Manufacturers

11.2 Interview with Ryon Packer, Chief Marketing Officer and General Manager of Authentix

11.2.1 Authentix’s Key Technologies and Strategies for Combating Counterfeiters

11.2.2 Size and Growth Rate of the Current Pharmaceutical Anti-counterfeiting Technologies

Market

11.2.3 Which is Dominating: Barcode or RFID?



Companies



11.3 Interview with Dr Michael Hogan, Vice President of Life Sciences at Applied DNA Sciences

11.3.1 Applied DNA Sciences’ Key Technologies and Strategies for Combating Counterfeiters

11. Research Interviews

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Contents

11.3.1.1 DNA Labelling Authentication Solution

11.3.1.2 Practicalities of On and In Product DNA Labelling

11.3.2 Applied DNA Sciences Entering the Pharmaceutical Anti-counterfeiting Scene

11.3.3 Current Dominating Anti-Counterfeiting Technology


11.4 Interview with Mike Messmer, General Manager of NovaVision

11.4.1 NovaVison’s Key Technologies and Strategies for Combating Counterfeiters

11.4.2 Country of Largest Counterfeiting Threat

11.4.3 Size of the Current Pharmaceutical Anti-counterfeiting Technologies Market



Companies



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

11.5.1 Current State of Counterfeiting in the Pharmaceutical Industry

11.5.2 AlpVison’s Key Technologies and Strategies for Combating Counterfeiters

11.5.3 Future of Anti-counterfeiting Technologies

11.5.4 On Whom do the Responsibilities for Counterfeiting Prevention Lie?

11.5.5 Major Barriers Facing Implementation of Anti-counterfeiting Technologies

11.5.6 Future Drivers of the Anti-counterfeiting Technologies Market

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

Based in the US

11.6.1 Threats Posed by Counterfeit Products

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Contents

11.6.2 Keeping Up with Counterfeiters: An Impossible Task?

11.6.3 Duty of Care

11.6.4 DNA Technology: Innovation Needed to Defeat Counterfeiting?

11.6.5 Future Prospects of the Pharma Anti-counterfeiting Industry

12. Conclusions

12.1 Pharmaceutical Anti-counterfeiting Technologies: A Growing Market

12.2 Leading Pharmaceutical Anti-counterfeiting Technologies Submarkets in 2014

12.3 Leading National Markets in 2014

12.4 The Future of the Pharmaceutical Anti-counterfeiting Technologies Market?

12.4.1 Government Mandates Will Fuel Growth in the Market

12.4.2 The US Will Continue to Dominate the Market

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

12.4.4 European Preference for Mandated 2D Barcode Technology

12.4.5 Enhanced Regulation of Online Pharmacies Necessary for Anti-counterfeiting

Technologies to be Effective

12.4.6 Market Expansion Will be Dependent on the Development of Industry-wide Standards

12.4.7 What Will Succeed in the Pharmaceutical Anti-counterfeiting Technologies Market?

12. Conclusions

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Pharmaceutical Anti-counterfeiting Technologies: Market Analysis and Forecasts 2015-2025

technologies, the bulk of which will be based on 2D barcodes and RFID tags. Visiongain believes

that the strong pharmaceutical industry growth, pressure from global community, high levels of

counterfeit activity and improvements in regulatory enforcement, will drive growth throughout the

forecast period 2015-2025.

4.7 Indian Pharmaceutical Anti-counterfeiting Technologies Market in

2013 and 2014

Visiongain estimates that in 2013, the Indian pharmaceutical anti-counterfeiting technologies

market reached $60m, representing 2.2% of the world market. In 2014 the Indian market will

increase to $67m, up 11.8% on 2013 (Table 4.12 and Figure 4.18). India has established

legislation for all products exported from India. There are currently no requirements for government

reporting, but manufacturers have to keep the serialised data to be able to verify single packages

on request.

4.7.1 Indian Pharmaceutical Anti-counterfeiting Technologies Market

Forecast 2015-2025

The Indian pharmaceutical anti-counterfeiting technologies market is growing very rapidly and will

see significant growth throughout the forecast period. Visiongain predicts that the Indian market will

grow with a CAGR of 12.7% over 2013-2019 to reach $122m in 2019 (Table 4.12 and Figure 4.18).

Growth will be driven by the fact that India has mandated in 2011 that certain pharmaceutical

exports from the country will carry a 2D Data Matrix label. This will act as a deterrent to criminals

who are intent on exporting counterfeit brand medicines manufactured in India.

Table 4.12 and Figure 4.18 show visiongain’s forecast for the Indian pharmaceutical anti-

counterfeiting technologies market over 2013-2025.

Table 4.12 Indian Pharmaceutical Anti-counterfeiting Technologies Market Forecast: Revenues ($m), AGR (%), CAGR (%), 2013-2025

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2025 2025

India ($m) 60 67 75 84 95 107 122 140 161 186 216 253 298

Annual Growth Rate (%) 11.8 12.0 12.5 12.6 13.1 14.4 14.5 15.0 15.5 16.2 17.0 17.7

CAGR (%, 2013-2019 and 2019-2025)

12.7 16.0

CAGR (%, 2013-2025) 14.3 Source: visiongain 2014



Figure 4.20 Russian Pharmaceutical Anti-counterfeiting Technologies Market Forecast: Revenues ($m), AGR (%), 2013-2025

4.9.2 Russian Pharmaceutical Anti-counterfeiting Technologies Market:

Trends and Developments

4.9.2.1 Russian Anti-Counterfeiting Measures From Past to Present

A UN survey in 2005 ranked Russia as the fifth-largest producer of counterfeit pharmaceuticals in

the world, with 70% of these products produced domestically and the rest imported mostly from

China and other Asian markets. A Federal Council meeting in June 2008 discussed the role of the

state in the protection of the Russian market from counterfeit medicines. Subsequently, the

government decided to form a working party to draft proposals to change current legislation.

In 2007, the state Duma (the lower house of the Federal Assembly of Russia) passed a bill that

amends a clause in the national criminal code, thereby allowing stricter punishments for people

who are involved in drug counterfeiting activities. This could extend the possible sentence to 15

years. In April 2010, the Duma passed new Federal Law “On the Circulation of Pharmaceuticals.”

Among a number of other stipulations, the bill was passed to help streamline the registration

process of the domestic pharmaceutical industry in order to discouraging counterfeit production

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

11.0

0

10

20

30

40

50

60

70

80

90

100

110

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

AGR

(%)

Sale

s ($m

)

Year Sales ($m) AGR (%)

Source: visiongain 2014



Table 9.6 3M Historical Sales: Revenue ($m), AGR (%), 2009-2013

2009 2010 2011 2012 2013FY Revenue ($m) 23,123 26,662 29,611 29,904 30,871Annual Growth Rate (%) 15.3 11.1 1.0 3.2

9.3 Alien Technology At a Glance

Based in California US, Alien Technologies specialises in the production of UHF RFID products for

various industries including defence, retail, logistics, transportation, consumer goods, and

pharmaceuticals. The company, which was founded in 1994, has its ‘Alien RFID Solutions Centre’

in Ohio in the US, and sales offices across the US, Europe, and Asia.

9.3.1 Alien Technology: Pharma Anti-counterfeiting Technology

Portfolio

The company’s product portfolio includes: Radio Frequency Identification (RFID) Integrated

Circuits (IC), tags, readers and professional services. Alien Technologies UHF RFID IC major

product line is its Gen 2 family. These products are suitable for a wide range of applications and

are powered by innovative 800-bit Higgs-3 or 512-bit Higgis-4 and antenna designs. The company

states that the Higgs-3 technology is its fifth generation IC and is currently the industries best

performing chip. The company produces Gen 2 RFID readers (Table 9.7), which are compliant with

US, European and Asian regulators. Alien Technology uses Gen 2 products, along with software

solutions from partners to help solve business problems for customers to improve productivity,

processes, security and asset tracking for closed-loop and supply chain systems. Table 9.7 shows

portfolio of Alien Technology’s RFID readers in 2014

Table 9.7 Alien Technologies: Portfolio of RFID Readers, 2014

RFID Reader Type Operating System ALR-9900+ Enterprise LinuxALR-9680 Commercial LinuxALR-9650 Commercial LinuxALH-9000/ALH-9010 Handheld-Wifi only Windows Mobile 6.5ALH-9001/ALH-9011 Handheld-advanced wireless Windows Mobile 6.6





Ryon Packer: The opportunities are to help Pharmaceutical companies understand the pros and

cons of the various anti-counterfeiting technologies that are available, and how to apply these

technologies to mitigate their highest priority risks or address their business objectives. Because of

the regulations in place, Pharmaceutical companies have a strong motivator for companies work

with manufacturers to develop even more secure technologies. These new technologies can then

be used outside the pharmaceutical space and benefit the entire product protection market. Every

market has a segment where innovation happens to benefit the greater marketplace – for product

protection, Pharmaceutical is that innovation space. So, it is natural that when we develop a

technology for a pharmaceutical product, a derivation of that technology can be used for over-the-

counter drugs, and if it works for over-the-counter drugs, it can work for other consumer products

as well.

11.3 Interview with Dr Michael Hogan, Vice President of Life Sciences at

Applied DNA Sciences

Dr Michael Hogan is the Vice President of Life Sciences at Applied DNA Sciences. Applied DNA

Sciences is a biotechnology firm that provides DNA-based authentication and security solutions

and services. Visiongain spoke to Dr Hogan via telephone in October 2014 and thanks him for his

time and expertise.

11.3.1 Applied DNA Sciences’ Key Technologies and Strategies for

Combating Counterfeiters

Visiongain: Could you give us an insight into Applied DNA Sciences’ key technologies, especially

those geared towards combating pharmaceutical counterfeiting?

Dr Hogan: The company’s core technology is the use of small biosynthetic pieces of DNA that

were originally obtained from a plant, so they are not human DNA and they are so small that they

don’t even have a biological function. They essentially amount to a very large molecular barcode.

They contain information in them and can be used to mark any number of products, which we are

doing in other areas such as electronics and bulk commodities like plastics and textiles. The

pharmaceutical area is our most recent interest and it is a very high priority for us.

The idea is that, because the DNA is so small, we can take the ink that would become the label on

a capsule or a tablet that you would ingest and introduce the DNA mark directly into the

pharmaceutical grade ink as a physical or chemical identifier (PCID). The tablet is now marked

internally at the molecular level with these DNA molecules, which are innocuous and functionless.

Pharmaceutical Anti-Counterfeiting Technologies Market Analysis 2015-2025

Business

impact of counterfeiting

drug counterfeiting

counterfeiting route

counterfeiting operations

pharmaceutical counterfeits

global pharmaceutical

pharmaceutical supply

contents drugs