Brand Protection:In the face of mounting counterfeiting, diversion & other

infringements

Jim Mentone | Director, Consumer Global Brand Protection

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Create active collaboration group MFGs & Retailers:

• Help protect consumers & patientso Counterfeiting & diversion is serious and growing

• Support Branding & Consumer Confidenceo Manufacture & Retailer

• Support Business Growtho Alignment with business strategies

Objective:

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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

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Counterfeiting

• Apparel, DVDs, watches. . . money, cigarettes . . .

• But …. Healthcare??? Pharmaceuticals? Medical Devices? Consumer Products?

• Shampoo?, Soap?, . . . Really?

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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 ....

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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

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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!

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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

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Why Global Brand Protection (GBP)?

Patient SafetyPatient SafetyPatient SafetyReputation of the productReputation of the brandReputation 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 anti-counterfeiting (ACF) technology and programs

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Safe & Secure Supply Chain

1. Incident Reporting and Management2. Awareness and Education3. Market Monitoring4. Commercial Insights5. Distributor Compliance6. External Manufacturer 7. Product Protection8. Product Returns and Destruction9. Transportation Security10. Facility Security

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1. Incident Reporting and Management

2. Market Monitoring

3. Commercial Insights

• Prompt reporting and management is critical to protect our patients

• Monitoring can identify issues before a product is dispensed to patients

• Internally available commercial data can guide our monitoring efforts and help investigate incidents

Safe & Secure Supply Chain Practices

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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

Safe & Secure Supply Chain Practices

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7. Product Protection

8. Product Returns and Destruction

• Risk-based assessments for new products

• Technology is applied based on level and type of risk

• Not serialization!

• Eliminate possibility of counterfeit product being restocked and sold

• Reduce possibility that product meant for destruction ends up in the grey market

Safe & Secure Supply Chain Practices

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9. Transportation Security

10. Facility Security

• Proper transportation security can reduce theft and pilferage, reducing source of product for grey market

• Facility security is vital for both finished goods and for WIP and packaging materials

Safe & Secure Supply Chain Practices

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Need to create active collaboration group:

• Protect consumers & patientso Counterfeiting & diversion is serious and growing

• Preserve Branding & Enhance Consumer Confidenceo Manufacture & Retailer

• Support Business Growtho Alignment with business strategies

Summary:

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Thank You!For more information,

please contactJim Mentone

jmentone@its.jnj.com(908) 904-3523