Presentation from 7th Pharma Anti-Counterfeit and Brand Protection Summit in Philadelphia, PA. 26-28 March 2018.
The United States is considered to have the safest drug supply chain in the world. However, 19 million Americans purchase pharmaceuticals from outside of this supply chain, from online pharmacies and unlicensed sources. This presentation details some of the devastating patient cases of counterfeit medicine, as well as the legislation and organizations fighting to keep pharmaceuticals safe.
2. The Partnership for
Safe Medicines
News and resources at
safemedicines.org
Print materials:
editors@safemedicines.org
3. The United States has
the safest drug supply in
the world…
…but as many as 19
million Americans buy
medicines outside that
supply chain, from
foreign online
pharmacies or other
unlicensed sources.
4. Since 2012, smugglers caught selling fake drugs
sold up to 63 medications to over 3,000 doctors,
clinics and hospitals across the U.S.
Physicians break the
supply chain, too.
5. Counterfeit Avastin
In 2012, the FDA discovered 2 lots of an imported
counterfeit cancer drug (Avastin) with no active
ingredient. The agency launched a massive recall and a
lengthy investigation.
7. • “Canadian Pharmacy” front
• Transshipped across multiple countries
• Lack of authentication
• Distributed to doctor’s offices throughout the U.S.
Path of counterfeit -
Avastin
Imported drugs lack safety of FDA regulation
8. Public health
threat is real
Late stage lung cancer patient Betty
Hunter was treated with counterfeit
Avastin in 2011 and died 3 months later.
Source: Medicin der Dræber
Source: FDA
9. Pills have been found in 43 states, with
deaths reported in 22 – March 2019
Fentanyl-laced counterfeit
Full report: “Forty States and Counting” at www.safemedicines.org
12. All Fentanyl is imported
Since 2015, counterfeit pills that are laced with deadly
imported fentanyl have been killing Americans across the U.S.
13. Main source of Fentanyl - China
October 2017: DOJ indicts 2
Chinese nationals in fentanyl
trafficking case
14. Source: eBay
Equipment for deadly
trade readily available
Pill presses readily
available on the internet.
As are counterfeit
medicine die molds
Source: eBay
15. Fentanyl Counterfeit Seizure:
Utah 95,000 pills
Source: www.deseretnews.com
6 charged with production and
online distribution of thousands of
fake prescription pills.
In November 2016 the DEA seized
$1.2 million and 95,000 pills
worth as much as $2.2 million in
sales.
Raid also resulted in seizure of pill
presses, dies, stamps and illegally
imported fentanyl and alprazolam
from China.
16. Fentanyl-laced counterfeit victim
Tosh Ackerman, Aptos, CA
The evening of October 27, 2015, 29-
year-old Tosh Ackerman took a
Benadryl and part of a Xanax pill to
help him sleep. He never woke up,
and his girlfriend found him dead the
next day.
Ackerman’s Xanax was counterfeit. It
contained a fatal dose of fentanyl.
His mother, Carrie, is speaks to
schools and the media. You can reach
her at ToshsStory@gmail.com
17. Fentanyl-laced counterfeit victim
Betty Jean Collins, Macon, GA
A 60-year-old Macon resident
recovering from open-heart
surgery took one of her
husband’s Percocets and ended
up in the hospital.
The medication was
counterfeit–made with
fentanyl–and Collins was one of
a series of poisoning cases
across Georgia.
Source: gbi.georgia.gov
18. Best industry practices against counterfeit
• Product Security &
Prevention:
• Covert & overt
authentication features
• Market monitoring /
Track complaints
• Active Enforcement
Posture:
• Online / Offline
• Investigation Intel
• Law Enforcement
Engagement & Support
• Litigation
19. Best industry practices against counterfeit
• Communications:
• Consumer Alerts
• Education on risk of
counterfeits
• How to avoid
counterfeit
• Government Affairs:
• Proactive to improve
enforcement policy &
conditions
• Educate on unintended
consequences of policy
20. The Partnership for
Safe Medicines
Americans are largely unaware of
this threat. PSM awareness tools:
□ Comprehensive reporting on
counterfeit incidents online
□ Explaining the risks in a variety
of mediums
□ Telling the stories of people
who have been hurt by fake
medicine
21. New legislative threat:
Drug Importation
Imported drugs–whether they are sold by wholesalers or retail
pharmacies–are not monitored by any regulatory agency.
“Drug importation proposals would
worsen the opioid crisis…” 2017
report from Louis Freeh, FBI
Director 1993-2001
Health Canada “…does not assure that
products being sold to U.S. citizens are
safe…and does not intend to...”
U.S. regulators cannot ensure the
safety of drugs produced outside FDA-
approved sources.
22. The dangers of
importation
IMF’s are
overburdened
and FDA cannot
inspect enough
shipments.
USPS: handled ~
621 million pieces
of inbound
international mail
in 2016–54%
more than 2012
Operation Pangea X
(2017)
□ 123 countries
□ 400 arrests
□ Stopped 3,584
websites and
>3,000 fake
pharmacy ads
□ Seized >$51
million in
medicinesPackages for inspection and
suspected counterfeit tramadol,
Source: GAO
23. Lack of prosecution
Prosecuting foreign nationals for selling
counterfeit drugs is hard, which makes a
poor deterrent.
23
2014: DOJ indicted 5 CanadaDrugs.com executives for
selling $78 million of fake cancer drugs
2017: Canada set extradition hearing for May 2018.
2018: Plea bargain pending - no jail time
CanadaDrugs.com still has their
Canadian wholesale license and
continues to sell to Americans.
24. Law Enforcement Risk:
Officer Exposure
Minuscule (2mg) exposure can
cause injury and death
New procedures for law
enforcement
Suspension of field tests
Source:
KEPRTV.com
25. What companies can do
Share PSM patient resources:
www.safemedicines.org/patient-resources
www.safemedicines.org/safe-savings-tip
Share PSMs Fentanyl resources:
http://safedr.ug/fentanyl101
http://safedr.ug/40statesandcounting
Contact Members of Congress
on the dangers of importation
http://safedr.ug/NoPoisonInUSA
19 million comes from Kaiser Health News, December 2016: https://khn.org/news/faced-with-unaffordable-drug-prices-tens-of-millions-buy-medicine-outside-u-s/
Based on a “ nationally representative sample of 1,202 adults”
https://www.npr.org/2017/10/17/558330881/justice-department-indicts-2-chinese-nationals-in-synthetic-opioid-case
Xiaobing Yan and Jian Zhang, face a raft of charges, including conspiracy to distribute large quantities of fentanyl and drugs with a similar chemical makeup in the U.S. through the mail or international delivery services.
The case against Yan, 40, began in 2013 in Mississippi when investigators traced the drugs back to Yan, who allegedly operated two chemical plants in China and websites selling fentanyl to Americans,
The case against Zhang, 38, began in North Dakota in 2015 after the overdose of a local 18-year-old. Investigators mapped the distribution network through Oregon, Canada and eventually to Zhang in China. Zhang's organization would send fentanyl as well as pill presses, stamps and dyes to U.S. customers through the mail.
Yan faces up to 20 years in prison and a $1 million fine, if convicted. Zhang faces up to life in prison and a $12.5 million fine, if convicted.
The Justice Department says 21 people have been indicted on federal drug charges in North Dakota and Oregon as part of the investigation.
30mg Oxycodone
DoJ release: https://www.justice.gov/usao-ut/pr/drug-trafficking-organization-faces-indictment-involvment-manufacturing-fake
News piece on Shamo: https://www.deseretnews.com/article/900000059/from-mormon-kid-to-alleged-drug-kingpin-inside-the-rise-and-fall-of-aaron-shamo.html
Health Canada, which licenses drug wholesalers across Canada, has no interest in regulating trade outside its own borders. In 2004, Diane C. Gorman, then Assistant Deputy Minister of Health Canada, explicitly warned Americans “Health Canada does not assure that products being sold to U.S. citizens are safe, effective, and of high quality, and does not intend to do so in the future.”
American regulators are already overburdened and will not be able to examine the flood of newly imported drugs. Many of this year’s bills in state legislatures openly acknowledge that Track and Trace won’t be implemented until imported medicines reach the U.S. Those drugs could come from anywhere. Proposals in Congress which would open the floodgates to the importation of unlicensed foreign medicines will increase the volume of unidentified packages containing pharmaceuticals, and make the problem even worse.
The Freeh Report: Key Findings:
Drug importation would increase the threat of illegitimate products entering the United States, fueling criminal organizations’ activities and profits.
Drug importation proposals would worsen the opioid crisis – a crisis that has already grown substantially worse due to the powerful opioid fentanyl and fentanyl analogue-laced counterfeit pills being produced by illegal drug trafficking organizations, including in China, and reaching the United States through Canada and Mexico.
Already overburdened law enforcement and regulatory capacity would be unable to ensure a safe prescription drug supply under importation.
The Freeh Report (40): “A former FDA official reported that IMF’s are inundated with thousands of packages containing pharmaceuticals, and while many shipments may in fact be legitimate drugs, there is no assurance because they are not approved for the U.S. and have never been subject to FDA inspections or requirements. In addition, the FDA cannot and will not inspect most shipments because the agency can only examine a small fraction of imports before they are passed onward to place like clinics, nursing homes or U.S. distributors.”
Express consignment operators are required to provide “electronic advance data” (EAD)—such as the shipper’s and recipient’s name and address—for all inbound express cargo which U.S. Customs and Border Protection (CBP) uses to target inspections. USPS is not required to provide this information to CBP––advance data are unavailable for roughly half of inbound international mail… USPS officials reported in November of 2016 that they planned to expand one of the pilots, CBP officials stated that the pilot was not ready for expansion because of USPS’s inability to provide 100 percent of targeted mail to CBP for inspection. USPS stated that it is working to address challenges related to identifying targeted mail within sacks containing hundreds of individual pieces of mail The challenges are substantial: In FY2016: USPS handled ~ 621 million pieces of inbound international mail–about 54 percent more than in 2012.
Operation Pangea X, (20170 197 agencies from 123 countries:
Made 400 arrests worldwide
Took 3,584 websites offline, took down > 3,000 online fake pharmacy ads
Seized more than $51 million in potentially dangerous medicines: dietary supplements, pain reduction pills, epilepsy medication, erectile dysfunction pills, anti-psychotic medication and nutritional products
Hard to regulate foreign nationals on foreign soil (Canada Drugs extradition).
(The judge holding extradition hearing in Canada decides whether to surrender the 5 CanadaDrugs.com employees who are under indictment to the US for trial.)
http://www.safemedicines.org/2017/10/five-canadadrugs-com-defendants-have-extradition-hearing-dates-set-for-may-2018.html