MOU signed in Shanghai to battle fake drugs
(China Daily)
Updated: 2004-05-18 00:00

Local government and private industry are combining in Shanghai to take on the producers of counterfeit drugs and better protect intellectual property rights (IPR).

In a first for the country, the Shanghai Municipal Food and Drug Administration (SMFDA) reached a memorandum of understanding (MOU) Monday with US-based Pfizer Inc, the world's biggest pharmaceutical company, in a bid to more effectively detect and deter the production of imitation drugs in Shanghai and its surrounding areas.

"Our top task is to ensure that the public receives safe pharmaceuticals, but the SMFDA is still technically weak in clamping down counterfeit drugs, such as in the area of chemical analysis," said administration Director Wang Longxing.

"The partnership with Pfizer is a strategic alliance because it has abundant international experience and advanced anti-counterfeiting techniques."

Wang said the desire to crackdown on fakes also expressed the Shanghai municipal government's commitment to creating a better environment for foreign investors by cutting out IPR violations.

Pfizer has found counterfeits of its drugs being sold in 57 countries and regions.

On the Chinese mainland, Pfizer has over 40 innovative drugs -- it plans to introduce another dozen within five years.

Its patented Viagra, which treats erectile dysfunction, is the most commonly counterfeited in China.

In Shanghai, the SMFDA found that the active component of Viagra was illegally added to other drugs, health products or sold through the Internet.

R. John Theriault, vice-president of global security for Pfizer, said fighting fakes was a long-term task and an international problem. "Pfizer has close co-operation with agencies worldwide but it's the first time that we've co-operated with a government agency," he said.

Theriault said the most challenging factor in China was to ensure the enforcement of anti-counterfeiting regulations from the central government downward.

According to the MOU, the two parties will share information concerning imitation Pfizer products in other countries and China.

Meanwhile, Pfizer will provide more technical support and help train SMFDA investigators and executives to enhance their detection abilities.

The counterfeit drug problem is worsening around the world.

According to a report issued by the World Health Organization in November, up to 25 per cent of medicines consumed in developing nations are estimated to be fake or substandard.

The US Food and Drug Administration estimated that counterfeit drugs alone comprise more than 10 per cent of the global medicine market -- generating annual sales of more than US$32 billion.

In China, imitation drugs have also become an increasing concern for the central government and the public.

China set up a nationwide system in August to regularly communicate with foreign invested companies and get their suggestions on fighting against counterfeit products and protecting IPRs.

The SMFDA's team of over 1,000 professionals monitors the safety of drugs and food.

It has also co-operated with food and drug administrations in nearby Zhejiang and Jiangsu provinces to set up a drug supervision network for the Yangtze River Delta area.