Two companies specialising in technologies used in the prevention of counterfeiting, adulteration and diversion of products have merged to form a new player called Authentix. The marriage of Isotag Technology and Biocode creates a company capable of operating in a number of sectors, includling food and beverage.
Isotag is contributing a molecular marking technology that can be used to authenticate both products and their packaging, and through the acquisition of Calyx earlier this year also has a position in both overt and covert security inks. The merger expands this portfolio to include Biocode's patented Marker Pair technology, used to mark ingestible products such as pharmaceuticals, foods and beverages.
The US Food and Drug Administration (FDA) started a major new consultation exercise on the problem of drug counterfeiting earlier this year, after seeing the first signs of an upswing in the number of cases. The initiative included the creation of an internal agency task force to explore the use of modern technologies, plus other measures, such as stronger enforcement, to make it harder to distribute fake products.
"Authentix will address the $600 billion problem of product counterfeiting facing today's global corporations," said David Moxam, CEO of Authentix (formerly CEO of Isotag). "The technical and service platforms of the two companies are synergistic and as such, our combined abilities are greater than the sum of our parts.
"In the last three years, we have recovered nearly $3 billion in lost sales and tax revenues for our clients. These recoveries help maintain employment and essential services such as health and education, especially for our government clients in developing countries. Moreover, we enhance their reputation for good governance and build consumer confidence in the brands of our corporate clients."
Moxam added that Authentix sets new standards in the authentication and tracking industry through its key points of difference. These points of difference include a focus on solution outcomes and not just technology inputs, credible experts with proven experience in client industries, and a one-stop shop for solutions design, implementation and management.
Authentix already has direct experience of tackling a counterfeiting issues. For example, one of the largest global pharmaceutical manufacturers turned to Isotag to develop a strategic solution to protect a leading prescription drug. The drug was discovered in counterfeit use in the US market, and the manufacturer wanted to find a quick solution to the problem in order to safeguard its reputation, and fend off the risk of product shortages and quality-control issues.
Isotag provided an FDA approved solution, to ensure that patients could easily distinguish genuine product from counterfeit, based on both overt and covert features on the packaging and labelling, which could be verified by consumers and inspectors in the field and laboratory.
"What sets Authentix apart is its proven ability to authenticate and track both products and their packaging," said Duncan Ritchie, vice president of global strategy & marketing, Authentix. "While the industry is awash with niche packaging technologies, many of which are unproven in commercial use, Biocode and Isotag have more than 17 years collective experience in delivering holistic solutions for brands and recovering value for clients. In completing this merger, we have created the world's foremost authentication company."Authentix will be headquartered in Dallas, Texas, with additional facilities in Los Alamos, NM; Newark, NJ; Bethlehem, Pa; and York, UK. The company is expected to recover more than $1.5 billion in lost revenues in 2003.