GSK's CEO warns SE Asia on fake drugs

Although China is praised for starting to take the problem of counterfeit medicines "a lot more seriously," the chief executive of  world number two drug major GlaxoSmithKline, Andrew Witty, has called  for more action by governments in Southeast Asia. The UK-headquartered  pharmaceutical giant is concerned over the lack of law enforcement  against fake drugs, even where criminal action can be taken. Mr Witty  told the UK's Times newspaper that, "in some countries in Southeast  Asia, counterfeiting remains a civil offense, where people get a  $10,000 fine and go to work the next day. I'd like to see more serious  consequences for people who generate counterfeit drugs."

The problem is compounded by local conditions that create opportunities  for imitators. Julian Harris, a research fellow with the London,  UK-based think-tank the International Policy Network, explained that the  region is vulnerable due to the presence of poverty and fake  manufacturing centers. He told the Marketletter: "heavy-handed  governments in this region impose considerable taxes and tariffs on  medical products, while offering little in the way of trade mark  protection. This results in legitimate operators facing high barriers  and low incentives - encouraging counterfeiters to fill gaps in the  market." In the case of Burma, he added: "having borders with both China  and India, the biggest manufacturers of fake drugs in the region,  doesn't help."