Top 5 benefits of using GS1 track and trace for Indian pharma companies

The distribution of fake medicines in the market spoils the brand image of pharma companies and leads to reduced sales. Continuous and unchecked counterfeiting of medicines can destroy pharma manufacturers and, more importantly, risk human lives.

Counterfeit medicines are rampant in Indian pharmaceutical marketplaces. Knockoffs of branded medicine can be found anywhere—from government pharmacies to big pharma stores and local drug outlets.

Problem of counterfeit medicines in India

According to a 2015 report by ASSOCHAM, 25% of medicines sold in India are either fake or of inferior quality. To quote a WHO report: “About 10.5% of medicines sold in low and middle-income countries, including India, are substandard and falsified.”

As one of the largest exporters of generic drugs and vaccines in the world, the Indian pharma industry accounts for every third dose of vaccine administered anywhere. Owing to concerns over bad reputation caused by the rampancy of fake medicines, the Indian government National Informatics Centre designed the “Drug Authentication and Verification Application” (DAVA) based on GS1 standards.

GS1-track & trace

GS1 standards make it possible to uniquely identify, capture and share important information on exported pharmaceuticals with regulators and patients, thereby further strengthening India’s reputation as a leading producer of quality and safe drugs.

“Benefits of GS1 track and trace for pharma companies”

Real-time information to authorities and patients

Provide real-time information to authorities and patients of pharmaceuticals manufactured in India.

Quick inspection of consignments

Pharma companies often face the challenge of slow movement through customs, both in India and abroad. Ensuring that your products are GS1-compliant will facilitate faster movement through customs by making it easy to scan barcodes and validating the data in DAVA.

Accuracy in dispatch processes

GS1 track and trace helps in efficient and automated FIFO (first in, first out) management and increases the accuracy of dispatch processes.

Competitive edge in the global market

Complying with the global and national regulations will provide Indian pharmaceutical manufacturers with a competitive edge in international markets.

International standing as a safe producer

Using GS1 standard track and trace will strengthen the international community’s confidence in India as a safe manufacturer of pharmaceuticals.

Consumer-end authentication

GS1 compliance will empower end-consumers to authenticate the final product and evaluate safety risks associated with counterfeits. As data becomes more complex, GS1 compliance allows pharma companies to ensure their global supply chain is easy to manage, accurate and reliable.

Holostik provides track and trace services to pharma companies in compliance with DAVA and GS1 standards to enhance supply chain visibility and efficiency.

To find out more, call us on +91–785-785-7000 or mail us at connect@ec2-54-210-245-44.compute-1.amazonaws.com.

The impact of counterfeiting on the common man

Many people don’t take the crime of counterfeiting seriously, they think that counterfeiting will not impact their lives, however, the fact is that counterfeiting has many negative impacts on the common man and thus has been named as the ‘Crime of the 21st century by Federal Bureau of Investigation.

On the global scale, the value of counterfeiting has reached a high of approximately 1 trillion dollars whereas, in India, the figure has shot up to I lakh crore annually. These figures clearly show the grim scenario of the situation.

Counterfeiting not only impacts the global economy but is a challenge for the governments, business organizations and most importantly the consumers. Counterfeiting not just dupes the consumer of his hard-earned money but also affects his health, besides this, there are many far-reaching impacts of counterfeiting on consumers. Let’s discuss the same.

Negatively affects the consumer’s health: What could be more dangerous than a counterfeit life-saving drug. Counterfeit medicines have created havoc in the industry, and it has become increasingly difficult to control them. Counterfeit or substandard medicines can have serious side effects on the human body and in some cases can even lead to death.

Dupes the consumer financially: Consumers who unknowingly purchase fake goods have to pay an actual price for a counterfeit. While it may sound good to purchase an original product at high prices but for a counterfeit, it is not at all good in any sense as you have compromise on quality.

Creates unemployment: There is a clear link between the rise of counterfeiting and the rise in unemployment. The business of counterfeits leads to monetary losses for the manufacturers which in turn affects the expenditure on current and future employees.

Poor infrastructure: Today’s common man needs beyond ‘roti, kapda, and makaan’. The government spends a good amount of money every year on rural and urban infrastructure. This money is collected from the taxes levied by the government on the business organizations and the common man. Since counterfeits evade taxes it leads to a drop-down in the money spent on infrastructure and development.

The negative impact of counterfeiting in the pharmaceutical industry

There are many times when the medicines you take do not help you in relieving from the ailment. Sometimes these medicines may cause many unwanted side effects on your body. This simply means that such medicines may be of low quality or counterfeit.

The market of fake medicines has grown tremendously over the past few years. Such spurious medicines can be found at government pharmacies, big pharma stores, local drug stores to small shops. Nowadays, people have become highly susceptible to fake or spurious medicines. This is because of many reasons like lack of awareness, poor monitoring of supply chains and weak regulations.

Here are some shocking facts about counterfeiting in the Pharma industry.

  • Around 20% of all drugs sold in the Indian market are counterfeit- (Source: US Trade Representative Office Annual Report)
  • Up to 10% of drugs in developing countries are fake, costing an annual loss of $10bn to $200 Billion. (Source: American Journal of Tropical Medicine and Hygiene)
  • 35 percent of fake drugs sold all over the world come from India. (Source: WHO Report)

Now let’s discuss some of the challenges posed by counterfeit medicines.

1. Prevents the business growth of Pharma companies: One of the biggest impacts of counterfeiting in the pharma business is that it brings down the profits of legitimate manufacturers. Market reports state that fake medicines lead to an annual loss of $46 billion for pharma companies worldwide.

Hampers the use and promotion of low-cost generic drugs: A major share of India’s drug market is dominated by branded generics. To promote the use of less expensive branded generic medicines government is taking various measures but, the circulation of fake drugs blocks its promotion and sale. This is because medicine earns a bad reputation due to its duplication.

3. Increased pressure on health and economy: The use of counterfeit medicines increases unnecessary costs on public health. This is due to their unwanted side effects which leads to a host of other health complications and diseases subsequently creating a vicious circle.

4. The extra cost for resources: To tackle the issue of counterfeit government has created many regulatory bodies but, has failed to counter the problem due to lack of manpower, for more human resources increase in costs are quite evident. For instance, India’s Central Drugs Standard Organization which is the country’s drug regulator had just 233 employees in 2014. In order to increase the strength of employees will bring an extra burden on the government in the form of increased expenditures.