Counterfeit drugs used to be a problem for poor countries. Now they threaten the rich world, too

The heading of the Viagra graph looks suspiciously like one I received yesterday.
Please Economist Editor please check the author is not involved himself!

People buy drugs from cheap places--that is, off the streets-- because they cannot afford to buy them from hospitals or reputed drug stores. Unfortunately, these cheap places often have fake drugs.

you have to remember that these drugs are so expensive that poor people cannot afford it. In poor nations, billions of people are denied life-saving AIDS drugs because these drugs are over priced. It costs a few cents to make those pills, but the drug companies sell them for thousands, making billions in profits. If you don't believe me, go look at the profits that some of these top drug companies make. Also, look at the billions that these companies spend on advertisements. They spend more on advertisements than they do on research!

This needs to change. I am all for free markets, but some regulation is needed here.

Living in developing countries, you will easily realise that authorities not just fail to combat counterfeit medicine but eventually take decisions-intentionally or not- that encourage it! For example creating entry barriers for original product by pricing restrictions will create a flourishing balck market for smugglers and counterfeit products.

Lipitor is itself a rip off as it is identical to the active ingredient in red yeast rice which is found naturally in nature and can be purchased over the counter. Is the FDA so corrupt that they gave an exclusive license for the biggest blockbuster drug in history despite the fact that it had a bioidentical match in nature? Who is the real counterfeiter here?

More than 90% of counterfeit drugs are made in India. As long as all countries ban Indian drugs, things will be easy to be fixed.

There is also a problem with the way most medical statistics are computed or manipulated by Big Pharma - those who are taking counterfeit medicines are always counted as victims of the "fake" products. Those who take the "legitimate" stuff and die anyway are never considered victims of the legitimate drugs. A good percentage of the ones taking the fake drugs would die even if they were taking the legal, expensive stuff.

@Chinaeagle:

No more of your China chauvinism and anti-India tirades please!

It is far easier to counterfeit a 20-dollar pill than a 20-dollar bill. The stiff increases in pharmaceutical prices in the past two decades have made counterfeiting economically attractive.

My favorite quotes from the piece in order of appearance:

-"Those who smuggle counterfeit medicines, by contrast, have often faced lax enforcement and light punishment." Surprising?

-"The pharmaceutical industry has persuaded several governments to stiffen regulations against fake drugs..." How low are these governments sinking that even such causes require lobbying?

-"Even the Catholic church is joining the cause, issuing a stern statement... Roger Bate of the American Enterprise Institute, a think-tank in Washington, DC, cautions..." Are there higher pillars of moral and ethical authority to cite?

"Now it appears that fakes are taking off in the rich world too." Now counterfeiter you crossed the line, time to act.

"including Lipitor, a blockbuster cholesterol drug." microsrfr you beat me to it, well said.

"A consumer study funded by Pfizer..." Certainly the results are beyond accurate.

Just back from Burma where a street hawker assured me that his Viagra and Cialis pills are "better" than those sold in Thailand.

It is far easier to counterfeit a 20-dollar pill than a 20-dollar bill. The stiff increases in pharmaceutical prices in the past two decades have made counterfeiting economically attractive.

Well you don't have to go to a developing country, seems like the Gucci handbag counterfeiters are here commenting right in this discussion.

Counterfeiting is a big issue today. A major reason for this is the technology in use at the original manufacturer is also available to the counterfeit manufacturers. So some protection system that depends on high technology only help the inspectors of the original manufacturer to identify a counterfeit. The only system i found that will let the consumer to identify a counterfeit is something i found at http://www.youtube.com/watch?v=Zj8L0musAz0 That is a real break and i wish if every manufacturer adopt this technology.

Nice ironic juxtaposition: draconian enforcement of prohibition against recreational drugs, casual attitude towards fraud. Once again we see government confusing its primary role, and violating rights instead of protecting them.

The behaviors and demeanor of many pro-PRC commentators here on The Economist illustrate exactly why the PRC must be militarily circled. (PRC = People's Republic of China).

Dear Sirs, There wasn't anythng about energetic and aggressive action undertaken to trace sources and apprehend the bad guys. Neither the article nor the comments broach the matter at all at all. How come? Given the dimension, enormity etc etc of this matter, surely there's a mighty effort underway to make life intolerable for the guilty?

The big issue is that American consumers are unfairly burdened with a disproportionate cost of drug R&D. In India, licensed legal version of many of these drugs (including generics) cost a tiny fraction of what they do in the US. Most prescription pills in India cost 1 cent to 20 cents. In the US, the cost would be 20 - 100x as much for an identical version.

The biggest threat to pharma companies and their profits are not from counterfeits but from legitimate and identical generic versions made in India.

Fake Viagra? I'll have to go back to my reliable powdered rhinoceros horn.

It was interesting that the article didn't mention the main country source of these counterfeit medicines - India. If it were China manufacturing them, that surely would have been the headline, so why ignore India? Because they're a 'democracy'?

A friend of mine in Shanghai, a senior executive with a global advertising agency, told me of a meeting he attended in India with a pharma friend. A pleasant woman in an enormous factory showed them the production and packaging of hundreds of medicines, with packaging details and pill or capsule copying perfected, seals included.

She offered seriously reduced dosages, substandard substitutions, or simple placebos - your choice - and was apparently absolutely unconcerned about the prospect of the Indian authorities visiting her plant.

I cannot now recall the production volumes she claimed, but according to my friend the factory was huge and must have had enormous turnover - shipped all over the world.

Since the Economist's editorial board would be fully aware that any mention of 'Asia' would lead most everyone to automatically condemn China, why was this (widely-known) fact omitted?

When people opt to buy counterfeit drugs, they do so because they are cheap. They are , I am sure not really aware of the possible harmful effects of these drugs. The question then is how to make drugs affordable. And obviously how to sensitise the population about counterfeit drugs. Both the Govt and the Drug companies will need to work together to address this very serious issue. It is understood that Drug companies spend a lot on research. But see the price they charge for their products. Profit margin in this business should be minimal and the Govt should also support research and subsidise drug production to minimise cost so that the price is affordable. Regarding counterfeit drugs, it is important to ensure effective enforcement of the law. In this regard building the capacity of enforcement agencies is important so that those who are involved can easily distinguish the original from the fake.