© Zuellig Pharma.

All Rights Reserved.

BY Fu-Wen Chang / Senior QA Manager

2015-02-06

© Zuellig Pharma. All Rights Reserved.

• Pharmaceutical Distribution Model

• Introduction of Zuellig Pharma Inc.

• Practices of Counterfeiting

Product Handling

• Challenges

2

© Zuellig Pharma. All Rights Reserved.

To understand

• how Zuellig Pharma to prevent the

counterfeited products from entering

into supply chain.

• how to effective handling of

counterfeited products found through

the distribution and warehousing

cycle.

3

© Zuellig Pharma. All Rights Reserved. 4

Manufacturer

Road Transport

Air Transit

Road Transport

Dispatch

Customers

Pharmacy

Hospital

Pharmaceutical Distribution Model

Distribution Center

Wholesaler

© Zuellig Pharma. All Rights Reserved. 5

Introduction of Zuellig Pharma Inc.

Zuellig Pharma Inc. Taiwan

Distribution Center

• PIC/S GMP certified

• GDP rewarded

© Zuellig Pharma. All Rights Reserved. 6

Introduction of Zuellig Pharma Inc.

© Zuellig Pharma. All Rights Reserved. 7

Introduction of Zuellig Pharma Inc.

Key Figures Sales Channels

• Established 1988(DC in 2005).

• Annual Sales of around 1.3 bio USD

• 500+ employees

• Single Distribution Center

• 3 offices

• Representing over 30 International

Manufacturers

• Around 51% Market Share of

Multinational Pharmaceutical

products in Taiwan

• Largest promoter in the DS/GP

channels with over 100 sales

representatives

Number of Customers %

Hospital / HP 532 100%

Clinic / GP 7,946 84%

Pharmacy / DS 7,367 85%

TOTAL 15,845 85%

Note: In terms of value, coverage exceeds 96% of Total

Market Value

© Zuellig Pharma. All Rights Reserved. 8

Manufacturer

Road Transport

Air Transit

Road Transport

Dispatch

Practices of Counterfeiting Product Handling

Distribution Center

Wholesaler

Customers

Pharmacy

Hospital

© Zuellig Pharma. All Rights Reserved. 9

Manufacturer

Road Transport

Air Transit

Road Transport

Practices of Counterfeiting Product Handling

INBOUND: Receiving

•Accept finished goods

only from Principal-

authorized Personnel

and forwarders with

corresponding delivery

documents.

Distribution Center

Wholesaler

© Zuellig Pharma. All Rights Reserved. 10

Manufacturer

Road Transport

Air Transit

Road Transport

INBOUND: Receiving

•Goods receipts from

forwarder shall be taken

sampling or QA check by

principal if required.

This checking process

will ensure that the

products received are

genuine.

Distribution Center

Wholesaler

Practices of Counterfeiting Product Handling

© Zuellig Pharma. All Rights Reserved. 11

Dispatch

INBOUND: Returned

•Goods returned from

customers must be

checked against the lot

number which can be

traced back to the

legitimate source.

Distribution Center

Wholesaler

Customers

Pharmacy

Hospital

Practices of Counterfeiting Product Handling

© Zuellig Pharma. All Rights Reserved. 12

Dispatch

INBOUND: Returned

Counterfeit products can

usually be identified by:

•Poor packaging/paper quality

•Anti-fraud label (if any)

•Color

•Blister layout (if applicable)

•Color of the content (such as

table, capsules, etc)

•Purity of the color of the content

•Labeling & leaflet

Distribution Center

Wholesaler

Customers

Pharmacy

Hospital

Practices of Counterfeiting Product Handling

© Zuellig Pharma. All Rights Reserved. 13

STORAGE & REPACAKGE

•Alert principals immediately of

any incident where stocks may

have been lost or stolen.

•Samples, rejected product,

rejected packaging components

shall be disposed of in

accordance with established

procedures so that

unauthorized use or diversion

is not possible.

•Used product containers or

cartons shall be defaced or torn

prior to disposal.

Practices of Counterfeiting Product Handling

© Zuellig Pharma. All Rights Reserved. 14

REDRESSING

•Excess Principal-supplied

packaging components,

stickers, and/or promotional

items in the repacking section

shall be controlled, monitored,

recorded and locked. The

details and quantity shall be

coordinated with the Principals

concerned for proper disposal

in accordance with established

procedures.

Practices of Counterfeiting Product Handling

© Zuellig Pharma. All Rights Reserved. 15

Dispatch

OUTBOUND

•Deliver stocks only to licensed and authorized customers,

distributors, hospitals and pharmacies.

•Products are secured during whole delivery.

•Delivery route monitoring by GPS.

•DRS ensures all deliveries are tracking.

Distribution Center

Wholesaler

Customers

Pharmacy

Hospital

Practices of Counterfeiting Product Handling

© Zuellig Pharma. All Rights Reserved. 16

Manufacturer

Road Transport

Air Transit

Road Transport

Dispatch

Any confirmed or suspected

counterfeited product found

during stock in/out, must be

immediately communicated

to the principal for further

investigation and prompt

action.

Distribution Center

Wholesaler

Customers

Pharmacy

Hospital

Practices of Counterfeiting Product Handling

© Zuellig Pharma. All Rights Reserved. 17

Manufacturer

Road Transport

Air Transit

Road Transport

Dispatch

Zuellig Management and the

concerned Principal shall be

notified immediately of

incidents where

counterfeiting or illegal

trading is suspected.

Distribution Center

Wholesaler

Customers

Pharmacy

Hospital

Practices of Counterfeiting Product Handling

© Zuellig Pharma. All Rights Reserved. 18

Manufacturer

Road Transport

Air Transit

Road Transport

Dispatch

Any counterfeited products

found in the supply chain

will immediately be

physically segregated and

stored in a dedicated area

away from all other

medicinal products and be

appropriately labelled.

Distribution Center

Wholesaler

Customers

Pharmacy

Hospital

Practices of Counterfeiting Product Handling

© Zuellig Pharma. All Rights Reserved. 19

Dispatch

Challenges

Distribution Center

Wholesaler

Secondary Wholesaler

Middlemen

Customers

Pharmacy

Hospital

Customers GDP

controlled

Not

controlled

© Zuellig Pharma. All Rights Reserved. 20