PharmaSecure Inc., a developer of pharmaceutical authentication technology, has raised $3.9 million from Eric Schmidt’s Innovation Endeavors, Gray Ghost Ventures, Healthtech Capital and the TEEC Angel Fund. The infusion will be used to create applications to respond to the Government of India’s drug serialization requirements that go into effect next year. India has mandated that all drugs exported from the country must have unique serial numbers and barcodes.
PharmaSecure Inc, a pioneer in pharmaceutical authentication technology, closed today on a $3.9 million investment from Eric Schmidt’s Innovation Endeavors, Gray Ghost Ventures, Healthtech Capital and the TEEC Angel Fund. The investments will be used to create new applications to respond to the Government of India’s drug serialization requirements that go into effect next year.
This year, the Directorate General of Foreign Trade of India mandated that all drugs exported from India must have unique serial numbers and barcodes by July 2012. India’s exports of pharmaceuticals are expected to reach $8 billion in 2012.
Since launching its India operations in 2009, PharmaSecure has printed over 65 million pharmaceutical packages with unique ID codes that allow consumer authentication by SMS. The company has agreements in place to protect over 1.5 billion pharmaceutical packages in India and exported from India over the next year; a number that continues to grow.
According to Innovation Endeavors’ Dror Berman, “We’ve invested in PharmaSecure because they are executing a game-changing approach to combating counterfeit drugs that holds huge potential for improving the safety and security of pharmaceutical products throughout the world.”
With the pharmaceutical industry experiencing substantial growth in emerging markets, the counterfeit drug industry has also grown to capture roughly $75 billion of the global drug market. These counterfeit drugs pose a major health threats that can results in death, illness and drug resistance among users. PharmaSecure guards against counterfeit drugs by printing on each bubble pack of pills a unique code and phone number so consumers can verify the drug’s authenticity with an SMS text message.
“India is leading the way in the global fight against counterfeit drugs. We are proud to have had a hand in creating applications like SMS authentication that put the power of protection against dangerous medicine literally in people’s hands,” said PharmaSecure co-founder and CEO Nathan Sigworth. “We are investing in more applications that can ride on the mandated serialization to increase the reach and distribution of our clients’ products and better health for their consumers. With the tradition of innovation that comes with this investment we expect the regulatory requirements to provide a creative opportunity for us and our clients.”
PharmaSecure’s innovative, cost-effective method earned the company Fast Company’s designation as one of the “10 Most Innovative Companies in Health Care.”
PharmaSecure is a global innovator in drug authentication technologies and software, creating effective solutions to ensure consumers receive authentic medications from trusted pharmaceutical manufacturers in emerging markets. Founded in 2007, PharmaSecure is a fast-growing company offering services in the United States, Europe, India, Africa, and Southeast Asia.