Unusual Drug Company Challenges

An article in today's WSJ illuminate some of the unusual challenges presented to the drug industry. The Journal reports that an estimated 6-10% of the world's drugs are counterfeit, amounting to over $35 billion worth of drugs. That is an enormous number. For perspective, that is almost equal to the entire industry's research and development budget.

Part of the problem is that some countries, particularly China, do not aggressively track down such counterfeiting. In response, drug companies have spent their own resources tracking down fake drug operations. The article highlights some of the actions taken by Pfizer, which almost amount to having their own investigative police force in China. What other global industry has to provide such services?

Fortunately, help appears to be on the way. A Chinese authority was quoted, saying "fake drugs is a business that is equivalent to murder," referencing the many deaths that have resulted from the use of counterfeit drugs.