With concerns of counterfeit drugs growing in both the domestic and export markets and the Government pushing for drug authentication solutions, a few drug-makers have taken the first steps in adopting barcoding and SMS-based authentication systems.
Technology companies such as PharmaSecure, Sproxil and HP have launched SMS-based authentication solutions to help pharma companies protect their brands while empowering the end-consumer. The service enables users to SMS a unique code, printed on every drug pack, to a dedicated phone number. Users will receive within a few seconds a response with the date of manufacturing, expiry date, and information on if the drug is original.
Production costs
According to an HP spokesperson, such services may push up production costs by 25-30 per cent. While this may squeeze margins, drug-makers cannot pass on this cost to the consumer due to the intense competition in the industry, say industry officials.
Dr Llyod Nazareth, COO, Fortis Hospitals, says this solution may be useful for only expensive and life-saving drugs and not viable for cheaper ones.
“While it may push production costs, even if the manufacturer can bust 30 per cent of the fake drugs in the market, that is a 30 per cent increase in top line,” argues Mr Appa Durai, Country Manager – Indigo & Inkjet Solutions, HP – India.
HP has come out with a printing technology wherein the unique pack code is printed underneath a scratch card.
Pharma companies are piloting the solution with marquee brands and those that bring in volumes.
Mr Shakti Chakraborty, Group President, Lupin, which has adopted PharmaSecure's anti-counterfeit SMS solution, says: “We have done the roll-out for our flagship brands and will eventually extend it to all Lupin brands in the market.”
Sun Pharma is putting in place barcode readers as it gears up for the changes required in packaging for the domestic and export markets. Top products that contribute in terms of volumes will first be covered, says a company spokesperson.
HP's solution is piloted by pharma company Kama Group — which does contract manufacturing in Mumbai — in Africa, where piracy of Indian drugs is rampant. Mumbai-based Themis Medicare is also set to launch HP's solution in Ghana. “We are also talking to a few pharma companies to roll out the solution in India. We hope to have the first project go live in October,” says Mr Durai.