The rise of counterfeit pharmaceuticals demands urgent action to secure supply chains. As digitalization becomes crucial, Open Commerce technologies offer a path to enhanced traceability and risk mitigation. Justin Floyd, RedCloud's CEO, points out that data-driven solutions enable stakeholders to monitor supply chains effectively, fill communication gaps, and protect consumers.

LONDON, Nov. 25, 2024 /PRNewswire-PRWeb/ -- The World Health Organization (WHO) has identified counterfeit medicines as one of the most urgent health challenges of the decade, with more than 1 in 10 medicines in low- and middle-income countries being substandard or falsified. (1) This global problem is magnified by the intricate nature of modern supply chains, where pharmaceuticals produced in one region can be packaged and sold worldwide. This complexity allows counterfeiters to infiltrate the market, posing severe risks to global health and straining healthcare systems. "This highlights the broader implications of the limitations of early e-commerce models," points out Justin Floyd, Founder and CEO of RedCloud. "Open Commerce offers a solution to this threat, committed to ensuring transparency throughout the supply chain."

The Double-Edged Nature of Online Commerce

The global counterfeit market has an estimated value of US$200 and US$432 billion, positioning pharmaceuticals as the leading illicit activity, surpassing other underground economic operations. (2)

While the e-commerce boom has expanded access by introducing online pharmacies to the global market, it has also amplified the distribution of counterfeit drugs and diverted products. Many consumers, motivated by the high cost of prescriptions, turn to online pharmacies for lower-priced alternatives.

This economic pressure drives nearly 90% of patients to prioritize cost savings, even if it means risking their health with medications that could be falsified or substandard. (3) The problem is not just the affordability but the awareness gap—most buyers remain uninformed about the authenticity and safety of their online purchases. The impact is severe: 74% of people note their inability to identify counterfeit items, reinforcing the cycle of underreporting and unregulated sales. (3) "The result is a market that endangers public health, shakes consumer trust and exerts economic strain on legitimate stakeholders", points out Floyd.

Case Studies and Real-World Implications

With this year's skyrocketing popularity, it was only a matter of time before counterfeiters targeted Ozempic. Fake versions of the drug, used for diabetes management and weight loss, were discovered in at least 28 countries, sometimes appearing as insulin pens. (4) Worst cases have led to hospitalizations in several countries, including the U.S. This incident reveals how counterfeiters exploit high-demand drugs by forging batch numbers to introduce fake products into the supply chain, risking consumer's health. (4)

Another example of this is the Biktarvy case. The manufacturer of this essential HIV medication was alerted when a patient reported receiving a sealed bottle of Biktarvy containing an over-the-counter headache pain reliever instead. Investigators found that counterfeiters had obtained authentic empty bottles, refilled them with the wrong pills, and repackaged them with fake seals. (5)

These cases highlight a range of deceptive methods employed by counterfeiters to infiltrate the pharmaceutical market, including:

• Product Diversion: Genuine medications are redirected from their intended supply chain for unauthorized resale. Some patients sell their pills at a fraction of the cost. (5) Buyers alter the bottles and resell them through wholesale distributors. This way diverted products reenter the supply chain, increasing the risk of reaching patients.
• Repackaging with Counterfeit Seals: Counterfeiters often use genuine or convincingly authentic-looking seals and packaging to mislead consumers and distributors into believing the product is legitimate.
• Batch Number Falsification and Labels: Forgers alter or replicate authentic labels and falsify legitimate batch numbers. (4) By doing so, they make counterfeit products seem traceable and authentic, bypassing regulatory checks and allowing them to circulate undetected in the marketplace.

Open Commerce Technologies: Embracing the Role of Traceability

The rise of counterfeit products and the increasing complexity of global supply chains demands a new approach to ensure product authenticity and safety.

Adopting traceability technologies and open commerce platforms such as RedCloud, offers a vital solution. Digitalizing supply chain operations allows manufacturers, wholesalers, and distributors to track products from origin to end-user, ensuring every step is secure and traceable.

As Justin Floyd, Founder and CEO of RedCloud, states "We can make a difference to them and their customers." By enabling better data sharing across all levels of the supply chain, Open Commerce addresses a key issue " the lack of digitization among stakeholders. These innovations don't just protect public health but support smaller players in the market. "This is how they can compete with larger, more established businesses by leveraging transparent, AI-enhanced systems that mitigate risks and optimize supply chain operations", Floyd concludes.

About RedCloud

Based in London, UK, RedCloud Technology was founded in 2014 and stands as a "Rebel Alliance," leading a bold, second-generation e-commerce transformation. Rejecting the high fees of tech giants, RedCloud leverages AI-enabled supply chain solutions to empower smaller businesses to compete with major corporations. Their democratized, platform provides financial visibility, offering a level playing field that breaks free from the dominance of conventional marketplaces. RedCloud embodies a fairer, more inclusive digital commerce future where Davids can stand tall against Goliaths. Visit https://redcloudtechnology.com/.

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SOURCE RedCloud