Counterfeit Drugs, Real Problems

Sept. 14, 2008— -- The international, multi-billion-dollar black market for counterfeit pharmaceuticals is of growing concern to law enforcement because of the sometimes lethal consequences for patients taking medicine that doesn't perform as advertised.

"It's a serious problem, simply because of the potential for health issues, and the potential for deaths if it is not taken seriously," said Matthew Friedrich, the acting assistant attorney general for the Justice Department's criminal division.

He said organizations such as the World Health Organization "put the annual amount of counterfeit drugs sales at something like $35-40 billion per year. So there's no question that it's a large problem globally."

Pharmaceutical giant Pfizer estimates its annual losses to counterfeit drug sales at $2 billion. The company calls it flat-out fraud.

Pat Ford, Pfizer's senior director for global security, said the situation is "like the Wild West," which poses a particular problem for those dispensing the drugs.

"It gets to the point that pharmacists can't tell the difference. That's why we educate them" on features in the packaging that help distinguish the real from the fake.

And it's not just an international problem, but one unfolding right here in the United States.

Friedrich said U.S. regulatory and enforcement efforts help, "but it's certainly something that we need to stay on guard about."

Case in point: Jordanian national Iyad Dogmosh, who recently pleaded guilty to selling fake Viagra on the streets of New York. Law enforcement caught him with more than 38,000 pills in his possession.

Dogmosh may invite comparison to the classic snake oil salesman, selling to anyone willing to buy. But Friedrich said the counterfeit drug trade can be far more sinister.

"It is scary, but there's one difference: a snake oil salesman is selling snake oil. What Mr. Dogmosh was selling was a brand. He was selling a trusted brand, and he was taking advantage of the marketplace's trust for that specific label."