US companies hit hardest by fake medicines: EUIPO, OECD
Companies registered in the US are hit hardest by the trade in counterfeit medicines, which in 2016 reached $4.4 billion, according to a report from the European Union Intellectual Property Office (EUIPO).
The report was published yesterday, March 23 by the EUIPO, through the European Observatory on Infringements of Intellectual Property Rights, and the Organisation for Economic Co-operation and Development (OECD).
Almost 38% of all seized counterfeit medicines infringe the IP rights of firms registered in the US, while other OECD countries—such as the UK, Switzerland, Germany and France—are also badly affected.
This is perhaps unsurprising given that the four countries are the largest producers of pharmaceuticals worldwide.
On the other side of the coin, India and China were identified as the largest producers of counterfeit pharmaceuticals at a global level, with Singapore and Hong Kong appearing as the busiest transit points in the counterfeit pharmaceutical supply chain.
India remains the main provenance economy of counterfeit pharmaceuticals. It was the origin of 53% of the total seized value of counterfeit pharmaceutical products and medicines worldwide in 2016 (compared with 53% for the 2011-2013 period).
China was the origin of 30% of the goods, with the United Arab Emirates and Hong Kong taking 4% each.
The scale of counterfeiting is huge—in 2016, international trade in counterfeit pharmaceuticals reached $4.4 billion.
Trade is being facilitated by the growth in small package shipments, which are more difficult for customs officers to detect. Between 2014-2016, 96% of all customs seizures of counterfeit pharmaceuticals were of postal or express courier deliveries.
Christian Archambeau, executive director of the EUIPO, said: “Counterfeit pharmaceuticals can pose a direct threat to health and life, and their arrival into the EU, often through small parcels and internet sales, poses a challenge for enforcers. Tackling this issue requires that the current national and EU-level coordination is further reinforced, and supported by global actions.”
Over the period 2014-2016, counterfeit antibiotics, lifestyle drugs and painkillers were the most frequently encountered. Counterfeit drugs targeting treatment for malaria, diabetes, epilepsy, heart diseases, allergy, blood pressure, cancer, and stomach ulcers, as well as local anaesthetics were also seized.
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