The pharma business is overgrowing and will continue to grow. Thanks to automation and other advanced technologies, the pharmaceutical industry has entered a new era of development. However, this growth is not without its challenges. One of the issues facing pharma businesses is counterfeit drugs, which can be very harmful to patients using them.
Anti-counterfeiting solutions such as barcodes, RFID tags, and holograms can help prevent counterfeiting in your business or organization by providing an extra layer of security to ensure that only genuine products enter your supply chain.
Loss of Consumer Trust
Without trust, a pharma business cannot hope to build a profitable business. To put it in perspective, according to Statista, in 2021, just 47% of Americans trusted pharmaceutical companies. The primary reason why 53% of Americans distrust pharma companies is owing to fake medicine availability.
The importance of trust in the pharma industry cannot be overstated, as it is the cornerstone on which this industry stands or falls apart. Trust can begin at any level -from product development to manufacturing and quality control until distribution. However, its loss has dire consequences for businesses and customers alike as it threatens their health and financial well-being if they do not get value for money spent on medicines purchased online or offline retailers.
A strong track record in consumer protection helps maintain consumer confidence which leads them back when needed without compromising on quality standards set by manufacturers themselves at every step from production till after sale services offered post-purchase like reimbursement policy, etcetera.
Loss of Revenue
Have you ever wondered why counterfeit drugs are so dangerous? It’s because they can cause serious harm to the users. These fake products may have no active ingredients, or they could have too much of an element that can cause allergic reactions. When a customer buys a drug that doesn’t work as promised or harms them in some way, there is a loss of revenue for the brand owner and negative publicity for their business.
In addition to the health risks associated with taking poor quality medicine, another financial risk is decreased sales from unhappy customers who do not buy anything from your company again. This could lead to lower profit margins and market share, damaging your brand value over time if you don’t take actions such as implementing product authenticity quickly enough.
Most importantly, though, product authentication helps ensure consumers get what they pay for, such as tangibles like medicines and injections or intangibles like information online about a specific drug safe before purchasing it through an e-commerce platform like Amazon.
Impact on Company Image
According to a recent survey, 83% of customers feel authenticity is significant in determining which companies they like and support.
In today’s world, consumers are more aware of the products they buy. Companies must be hyper-vigilant about how their goods are produced and delivered to the market.
If your company relies on the public’s goodwill for its success, counterfeiting has severe implications for your brand and reputation, and it can impact the share price too.
Counterfeits can also limit your ability to raise capital from investors who may be wary of investing in a business whose products have been tainted by fakes.
A Decline in New Product Launches
According to reports by Statista, the worldwide counterfeit medication business was estimated to be worth USD 200 billion in 2020, with revenue losses owing to fake goods likely accounting for 13 new drugs not being released each year.
This is why pharmaceutical companies are increasingly focusing on anti-counterfeiting solutions. This helps prevent counterfeit products from entering the supply chain and allows them to differentiate their product from competitors and ensure that customers get what they pay for.
New products are a crucial part of drug development and commercialization strategies, so any delay or failure may result in fewer launches in general – which can hurt sales performance and overall company value and reputation.
In addition, anti-counterfeiting solutions can help companies avoid potential lawsuits and legal settlements for selling counterfeit products. This is especially true in countries like India, where pharmaceutical firms are often held responsible when an imposter product causes harm.
Prevent Brand Hijacking and Infringement
Counterfeit pharmaceuticals are a severe threat to your brand reputation and public health. According to data cited in Healthcare Packaging, hijacking contributed to 40% of pharma thefts in 2019. This means that counterfeiters can easily steal valuable medications from hospitals and clinics. To protect your brand’s image and reputation, you must implement anti-counterfeiting solutions throughout your supply chain. The following steps will help:
- Identify potential counterfeits early on using RFID tags or marking systems like microdots or invisible ink. These unique identifiers can be used both during manufacturing and shipping so that you can easily detect any suspicious activity beforehand. If something gets stolen, these markers will provide evidence against the perpetrator(s).
- Train employees about what to look out for when receiving shipments from third parties suppliers or distributors, and inform them about who they can contact if they see anything unusual happening at their workplace.
For example, if someone shows up unexpectedly claiming they are working on behalf of another company, then immediately contact security personnel at either location before allowing them access inside without checking whether they work there. Do not let anyone pass through without proper credentials checked first.
Prevent Selling of Expiry or Damaged Products
According to the Center for Disease Control (CDC), 50,000 young kids wind up in emergency rooms each year after getting into medicines when an adult was not watching.
- Prevent selling of expiry or damaged products: Use an anti-counterfeiting system that includes a serial number on every product and records of where it was manufactured, shipped, and sold. This allows you to track the history of each product from the factory through distribution channels until it reaches its final destination – your customers.
- Prevent selling of counterfeit products: Make sure that only authorized distributors can sell your products by using an anti-counterfeiting system with unique identifiers (serial numbers) embedded in packaging materials so that you know exactly where and when each unit left your control at any point along its journey from manufacturing facility to customer’s hand.
- Prevent selling fake products: A counterfeit may look like a tangible item but doesn’t perform as promised, whereas a generic medication looks nothing like what it claims – thereby having no similarity whatsoever. With our technology embedded within every unit we manufacture alongside other essential details such as batch number etc., consumers are never fooled into thinking they’ve purchased something more than what they bargained for – regardless if it’s expired or has been tampered with somewhere along its journey between us here at Asepto Labs & Pharma Solutions Pvt Ltd right through until delivery day arrives.
To conclude, it’s essential to understand counterfeit drugs’ dangers. Counterfeiting is a huge issue in the pharmaceutical industry, but companies can protect themselves by using anti-counterfeiting solutions. These solutions provide data security, supply chain security, and more to ensure that counterfeits don’t harm your brand. With so many drugs being counterfeited every year, companies must stay on top of their game by having an effective anti-counterfeiting strategy in place.