Executive Briefings

Pharmaceutical Heists on the Wane in Number and in Value of Drugs Stolen. Why?

The average size of each pharmaceutical theft incident in U.S. so far in 2012 has been about $120,000. Compare that to just four years ago, in 2009, when the average incident resulted in losses of about $4m. That is an astonishing reduction of more than 30 times in just four years. Furthermore, the number of incidents during the same period has been cut in half. What is the cause of this phenomenal success?

For one thing, security is no longer just a blue collar job. It has become a white collar profession requiring college-educated specialists. You can't depend on the retiree-age security guard at the front door. Most successful thefts are done by highly professional teams that do a lot of scouting, planning and surveillance.

Consider the case of the largest pharmaceutical theft in recent years. On a stormy Friday night, March 14, 2010, thieves scaled up the side of Eli Lily's Enfield, Conn., warehouse, cut a hole in the roof, rappelled down into the warehouse, and disabled the alarm system. For the next three and half hours, they filled a 53-foot trailer with about $76m of drugs (Prozac, Stattera, Cymbalta, Zyprexa, Gemzar, Alimta, and Efient). This same gang had already done heists at Bayer, GSK, and J&J, but those were all in the $3m to $10m range.

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Keywords supply chain risk management, pharmaceutical supply chain, security of pharma supply chain, thefts in pharmaceutical supply chain

For one thing, security is no longer just a blue collar job. It has become a white collar profession requiring college-educated specialists. You can't depend on the retiree-age security guard at the front door. Most successful thefts are done by highly professional teams that do a lot of scouting, planning and surveillance.

Consider the case of the largest pharmaceutical theft in recent years. On a stormy Friday night, March 14, 2010, thieves scaled up the side of Eli Lily's Enfield, Conn., warehouse, cut a hole in the roof, rappelled down into the warehouse, and disabled the alarm system. For the next three and half hours, they filled a 53-foot trailer with about $76m of drugs (Prozac, Stattera, Cymbalta, Zyprexa, Gemzar, Alimta, and Efient). This same gang had already done heists at Bayer, GSK, and J&J, but those were all in the $3m to $10m range.

Read Full Article

Keywords supply chain risk management, pharmaceutical supply chain, security of pharma supply chain, thefts in pharmaceutical supply chain