• September 29, 2009

The distribution of drugs needs to be secure all the way through the supply chain from raw materials to pharmacies; otherwise counterfeits are more viable and will fuel illegal distribution, according to the MarkMonitor Summer 2009 Brandjacking Index.

Findings also show how B2B exchanges are attracting a larger number of listings. This presents a greater threat to the supply chain and public health as evidenced by continued increases in traffic to online pharmacies, making the brandjacking of major drug brands a roughly $10 billion industry, according to the San Francisco-based MarkMonitor.

Consumers are turning to the Internet, visiting both legal and illicit online pharmacies, while offshore manufacturers increasingly embrace B2B exchange sites to sell bulk quantities of branded prescription drugs, often of suspicious quality. As more people try to save money when purchasing drugs and more companies look to streamline operations, especially in the current economy, the cost savings and efficiencies of e-commerce become even more attractive, presenting a tempting opportunity for online fraud and brand abuse on both the supply and demand side of the equation.

"Scammers are opportunists, and by targeting the supply chain they're positioning themselves to move the greatest amount of fake product they can," said Frederick Felman, chief marketing officer at MarkMonitor. "This maximizes their return on the scam but it also poses a potential danger to peoples' health and safety, not to mention brand reputation."--Tanya Irwin