NanoGuardian Bolsters Defenses Against Counterfeiting and Illegal Diversion

As evidence of its continued commitment to the fight against counterfeiting and illegal diversion, NanoGuardian forges ahead with several business moves in 2010. Among some of the most prominent efforts are a global collaboration with Capsugel, the extension of NanoEncryption technology to cover single-use vial caps and pre-filled syringes, and a partnership agreement with Altegrity Risk. NanoGuardian, a division of NanoInk, delivers brand protection solutions to defend against illegal diversion and counterfeiting.

In February, the company entered into a license agreement with Capsugel, a division of Pfizer Inc. ( and the global leader in providing capsule-based drug-delivery systems, that gives Capsugel global access to NanoGuardian’s NanoEncryption technology for the protection of capsule-based medications against counterfeiting and illegal diversion. NanoGuardian’s NanoEncryption technology works directly on capsules, tablets, vial caps, and single-use syringes to provide a layered security strategy consisting of overt, covert, and forensic security features.

NanoGuardian’s multi-layered security provides a dual-protective benefit to manufacturers by fighting both counterfeiting and illegal diversion with a single technology. The overt and covert security features allow dose-level authentication at any point in a manufacturer’s supply chain, while forensic NanoCodesprovide comprehensive tracing information on each and every dose. NanoGuardian’s technology provides a strong benefit over other on-dose technologies given that NanoGuardian’s security features are implemented with no additional chemicals being added to the medication.

“Capsugel is committed to providing cutting-edge advancements in capsule dosage delivery technology,” says Guido Driesen, president and general manager of Capsugel. “Given the concerning rise in counterfeit and illegally diverted medications throughout the world, we wanted to bring value to our customers by helping to protect their brands, companies, and the patients they serve. After evaluating available security technologies, we chose NanoGuardian as a technology partner because of the sophistication, sustainability and benefits of their NanoEncryption technology. This will allow our pharmaceutical customers to authenticate and trace every single dose, from plant-to-patient.”

In addition to the traditional NanoGuardian model of using a proprietary machine to implement the NanoEncryption technology, Capsugel will offer pre-NanoEncrypted capsule shells to pharmaceutical companies, eliminating any significant additions to their current manufacturing process. Capsugel will market this new technology to current and future Capsugel customers and expects it to be able to supply NanoEncrypted capsules by mid-2010.

“NanoGuardian is a leader in the on-dose brand protection marketplace so it makes perfect sense for us to partner with the global leader in capsule-delivery systems,” says James Hussey, CEO, NanoGuardian. “Together, NanoGuardian and Capsugel can extend product security and integrity to the dose level for capsule-based medications and help provide confidence to the millions of patients who rely on these medications for their health and well being.”

In April, NanoGuardian extended its state-of-the-art NanoEncryption technology in covering single-use vial caps and pre-filled syringes to help ensure the safety of products using these delivery systems. Prescription pharmaceutical products delivered in vials and pre-filled syringes are a target for counterfeiters and illegal diverters. In the book “Dangerous Doses,” by Katherine Eban, criminals placed counterfeit product labels indicating a higher strength on illegally diverted low-dose vials of medicines. These adulterated, mis-labeled medications penetrated the legitimate supply chain and were taken unknowingly by patients. NanoGuardian’s NanoEncryption technology in conjunction with its Closed-Loop Protection market-monitoring program can assist manufacturers in protecting each vial or syringe against such adulteration.

NanoEncryption technology protects against both counterfeiting and illegal diversion by providing a layered security solution consisting of overt, covert and forensic-level security features. The overt and covert security features allow dose-level authentication at any point in a manufacturer’s supply chain, while the forensic-level NanoCodes provide unlimited information on each and every dose, including dosage strength, expiration date, date of manufacture, manufacturing location, and country of distribution.

NanoGuardian’s technology provides a strong benefit over other on-dose technologies given that NanoGuardian’s security features are implemented with no additional chemicals being added to the medication. In addition, NanoGuardian’s Closed-Loop Protection combines the on-dose authentication and tracing benefits of NanoEncryption technology with a proactive pharmacy auditing program to identify counterfeit or illegally-diverted pharmaceuticals entering the global supply chain.

“Given the significant potential for negative impact to patients’ well being, we are pleased to extend our NanoEncryption technology to single-use vial caps and syringes,” says Dean Hart, executive VP, NanoGuardian. “This extension provides pharmaceutical manufacturers a new, high-tech tool to help ensure the safety of their products using these delivery systems.”

According to the U.S.-based Center for Medicines in the Public Interest, counterfeit drug commerce is estimated to grow 13% annually through 2010.

“That means counterfeit drug sales will grow at nearly twice the rate of legitimate pharmaceutical commerce,” says Peter Pitts, president, CMPI.

In 2010, this illegal business is expected to generate $75 billion in revenues — a 92% increase from 2005.

Also in April, NanoGuardian entered into a partnership with Altegrity Risk International ( to serve as NanoGuardian’s security partner in delivering its Closed-Loop Protection Program, which assists manufacturers in detecting counterfeit and illegally diverted products in the legitimate supply chain. NanoGuardian’s Closed-Loop Protection Program works hand-in-hand with its NanoEncryption technology and uses statistical modeling with randomized pharmacy auditing in an effort to identify counterfeit or illegally diverted pharmaceuticals on pharmacies’ shelves awaiting distribution to patients. The mission of NanoGuardian’s Closed-Loop Protection Program is to provide early detection of counterfeit and illegally diverted products, helping to reduce risk to patients, brands, and companies.

“NanoGuardian is committed to forging relationships with best-of-class partners in our effort to protect patients and brands,” says Dean Hart, executive VP, NanoGuardian. “We are very excited to announce another such partnership with ARI, a global leader in corporate security with significant experience in the pharmaceutical space.”

Pharmaceutical counterfeiting and diversion are growing concerns throughout the world, and the criminals engaged in these activities are sophisticated and well-resourced. On-dose security technologies, such as NanoGuardian’s NanoEncryption technology, that remain with every dose indefinitely and defy counterfeit packaging, are absolutely necessary to protect patients and brands in this escalating war. Programs, such as NanoGuardian’s Closed-Loop Protection, which proactively search for the emergence of counterfeit and illegally diverted medications in the legitimate supply chain provide an additional measure of protection and safety while reducing risks to patients, brands, and companies.

“We are thrilled to partner with NanoGuardian in its efforts to protect patients by ensuring supply chain integrity,” says Thomas McWeeney, managing director and head of the Washington D.C. Office, ARI.

ARI’s expertise and experience in security consulting, investigative intelligence, and monitoring services make this partnership ideal given the cutting-edge protection that NanoGuardian’s NanoEncryption technology provides pharmaceutical manufacturers. ARI will use its diverse resources — including more than 2,800 cleared investigators located throughout the United States and U.S. territories as well as its network of professionals around the globe with experience in more than 150 countries — to ensure the chain of custody of pharmaceutical products that are acquired as a part of the Closed-Loop Protection Program. Given its NanoEncryption technology with the Closed-Loop Protection market monitoring program, NanoGuardian has proven that it is at the forefront of brand protection for the pharmaceutical industry.


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