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Study on Pharmaceutical Counterfeiting
Study on Pharmaceutical Counterfeiting

Issue

Our client was confronted with a specific problem in terms of counterfeiting in different Chinese provinces.

Mission

Analyze the sales and distribution networks and make a counterfeiting risk assessment.
Define methods and practical operating modes and bring an efficient response strategy.

Actions

First, we approached institutional entities (Economic Crime Investigation General Department of PSB, Drug Inspection Bureau of SFDA…), at both the central and local levels, in order to: 1/ Distinguish the informal networks tolerated by the authorities from “grey channels”; 2/ Understand all regulation and controls exercised over each of these networks.
In a second step, we conducted interviews of managers in the key pharmaceutical companies and medicine wholesale companies in order to understand behavioral tendencies of patients and physicians, and local distribution channels’ characteristics.
Last, we were able to formulate a strategy repositioning for our client and indicate the best secure distribution routes. We also made Public Healthcare recommendations.

Results

Our client obtained a better understanding of the counterfeiting risk for each distribution channel: 2 & 3 graded regular hospitals, private & community hospitals, wholesalers, drugstore chains and single drugstores in the different targeted provinces.
We provided appropriate tools for protection enhancement and a methodology to fight counterfeit instances on the ground.
Last, our study helped our client to improve pricing and positioning strategies over the competition.