Brand Protection: In the face of mounting counterfeiting, diversion & other infringements. Jim Mentone Director, Consumer Global Brand Protection

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1 Brand Protection: In the face of mounting counterfeiting, diversion & other infringements Jim Mentone Director, Consumer Global Brand Protection

2 Objective: Create active collaboration group MFGs & Retailers: Help protect consumers & patients o Counterfeiting & diversion is serious and growing Support Branding & Consumer Confidence o Manufacture & Retailer Support Business Growth o Alignment with business strategies Confidential 2

3 What s a counterfeit? Fake product in a fake package? Fake product in a genuine package? The real product repackaged in a real or fake package? The real product repackaged to extend a shelf life? The real product from a different country repackaged? Yes! All / Any of the above Confidential 3

4 Counterfeiting Apparel, DVDs, watches... money, cigarettes... But. Healthcare??? Pharmaceuticals? Medical Devices? Consumer Products? Shampoo?, Soap?,... Really? Confidential 4

Counterfeiting is a large and growing business The World Health Organization (WHO) states that worldwide sales of counterfeit medicines could top $75 billion, a 90% increase in five years

5 Counterfeiting is a large and growing business The World Health Organization (WHO) states that worldwide sales of counterfeit medicines could top $75 billion, a 90% increase in five years 30% of certain drugs consumed in developing countries are counterfeit In Africa estimates are that 50% of the anti-malarias and HIV drugs are counterfeit The Threat is Real... Confidential 5

6 Counterfeiting an issue primarily outside US... RIGHT? Estimates for US: 1% of pharmaceuticals are counterfeit 5% of Consumer products and Medical Devices imported into the United States are counterfeit Confidential 6

7 If you re a category leader, you re a target for counterfeiting In the last 5 years: We have identified counterfeit products in every major category We have identified counterfeit products in every region of the world We have identified counterfeits in every channel of sale Counterfeiting is a problem for consumer goods and the healthcare industry in general! Confidential 7

8 Confidential 8

9 Diversion Not Just a Business Issue Diversion may result in mishandling or contamination of products Diversion enables counterfeiters Diversion is how counterfeits are inserted into legitimate channels Confidential 9

10 Why Global Brand Protection (GBP)? Patient Safety Patient Safety Patient Safety Reputation of the product Reputation of the brand Reputation of the manufacturer & Retailer Legal liability Centralized Brand Protection function consists of Global Sector Leads for strategy and regional coverage Regional (cross-sector) Leads for emerging markets Central support for anticounterfeiting (ACF) technology and programs Confidential 10

11 Safe & Secure Supply Chain 1. Incident Reporting and Management 2. Awareness and Education 3. Market Monitoring 4. Commercial Insights 5. Distributor Compliance 6. External Manufacturer 7. Product Protection 8. Product Returns and Destruction 9. Transportation Security 10. Facility Security Confidential 11

Safe & Secure Supply Chain Practices 1. Incident Reporting and Management Prompt reporting and management is critical to protect our patients 2. Market Monitoring 3.

12 Safe & Secure Supply Chain Practices 1. Incident Reporting and Management Prompt reporting and management is critical to protect our patients 2. Market Monitoring 3. Commercial Insights Monitoring can identify issues before a product is dispensed to patients Internally available commercial data can guide our monitoring efforts and help investigate incidents Confidential 12

13 Safe & Secure Supply Chain Practices 4. Awareness and Education 5. Distributor Compliance 6. External Manufacturer Awareness and Education can further our efforts by involving all associates and business partners Contractual language and proper due diligence can create a safer supply chain Implementation of measures to mitigate the inherent risks associated with using an external partner in a global supply chain Confidential 13

level and type of risk Not serialization! 8.

14 Safe & Secure Supply Chain Practices 7. Product Protection Risk-based assessments for new products Technology is applied based on level and type of risk Not serialization! 8. Product Returns and Destruction Eliminate possibility of counterfeit product being restocked and sold Reduce possibility that product meant for destruction ends up in the grey market Confidential 14

15 Safe & Secure Supply Chain Practices 9. Transportation Security Proper transportation security can reduce theft and pilferage, reducing source of product for grey market 10. Facility Security Facility security is vital for both finished goods and for WIP and packaging materials Confidential 15

16 Summary: Need to create active collaboration group: Protect consumers & patients o Counterfeiting & diversion is serious and growing Preserve Branding & Enhance Consumer Confidence o Manufacture & Retailer Support Business Growth o Alignment with business strategies Confidential 16

17 Thank You! For more information, please contact Jim Mentone (908) Confidential 17

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