According to the World Health Organisation (WHO), 1 in 10 pharmaceuticals is counterfeit (i.e. falsified or substandard). The annual cost to the pharmaceutical industry is estimated to be $75bn every year rising to $200bn when the cost to the public health system is included.
Complex global supply chains with multiple points of entry make counterfeiting pharmaceuticals an easy and profitable target for criminals. Organized crime networks have long discovered how lucrative and relatively low-risk the counterfeit pharmaceutical market is, offering margins that surpass those of illegal-drug trafficking. According to the German Federal Criminal Police Office (BKA), one kilogram of the lifestyle product Viagra can yield up to $117,000 on the black market whereas the same amount of cocaine and heroin yields only $76,000 and $58,000 respectively. The purchase price for one kilogram of Viagra‘s active ingredient sildenafil is estimated at $70, while the raw material for cocaine and heroin is between $1,700 and $8,400!
GENUTEX offers a unique hybrid blockchain solution with data encrypted app-based verification to authenticate the supply-chain of pharmaceuticals and mitigate the global supply of counterfeit pharmaceuticals. Our free-to-use application utilises existing unique-identifier technology to enable the end-user [patient] to easily authenticate pharmaceutical products from any registered source.
Globally, the market value of all counterfeit goods sold in 1-year is estimated at $1.8 trillion and growing at 15% every year. The EU alone imports some €85bn (about 5% of all imports) of counterfeit products every year. One of the worst affected sectors is pharmaceuticals. In a recent report, PwC’s ‘Strategy Consulting’ business labelled counterfeit pharmaceuticals as:
“The most lucrative sector in the global trade of illegally copied goods and the world’s largest fraud market”.
In the developed world, the biggest distributor of counterfeit medicine is via the internet where over 50% of all online sales are counterfeit. Furthermore, nearly every therapeutic category of drugs, from image-enhancing “lifestyle drugs”, to analgesics, psychiatric, cancer and cardiologic drugs, is available through the internet.
For the first time ever, GENUTEX offers the end-user patient a free-to-use, app-based verification tool that will authenticate pharmaceuticals purchased online or any other outlet. Our proprietary Vaultex™ platform is a private, permission-based, templated and cryptographically secure blockchain ecosystem limited to pharmaceutical manufacturers and end-user patients. Vaultex™ creates an immutable and auditable chain of custody record for each pharmaceutical product using cryptography, meaning the records are tamper-proof through time.