A counterfeiting network stretching from China to Pakistan and into the United States made up to 20,000 counterfeit Johnson & Johnson OneTouch Diabetes test stripes in 2006. As of 2010, Johnson & Johnson was still filing lawsuits against those that sold the counterfeit test stripes. Johnson & Johnson reported that no fake boxes have been sold in the United States within the last two years.

Source:  Peter  Loftus, “U.S. Probes Alleged Seller of Fake J&J Diabetes Monitors,” Wall Street Journal, April 8, 2010.

In 2007, Church & Dwight Co., makers of the Trojan brand condoms, reported that 4 million counterfeit condoms being sold as Trojans were confiscated by law enforcement officials.

Source:  Cary Spiuak, “Wholesaler sued for fake condoms,” Milwaukee-Wisconsin Journal Sentinel, January 20, 2008.

According to the World Health Organization, the number of incidents where counterfeit medical devices were found was 20 percent higher in 2007 compared to 2006, and a 10 fold increase from the amount found in 2000.

Source:  World Health Organization, “Counterfeit Medical Products: Report by the Secretariat,” Sixty-First World Health Assembly, April 7, 2008.

Based on the following sources, Havocscope has calculated the estimated losses to counterfeit medical devices to be $7 Billion.

Calculation:

Counterfeit medical devices represents between 6 to 8 percent of the medical devices market.

Source:  Elizabeth Engler Modic, “Medical Device Counterfeiting Harms Many,” Today’s Medical Development, June 2009, and Jayant Singh, “Phase out the Fakes, Medicaldevice-network.com, April 4, 2008.

Size of medical devices market in the United States: $100 Billion.

Source:  Jim Austin, Terry Fadem and Paul J.H. Shoemaker, “A Look into the Future of the U.S. Medical Device Markets,” Medical Device & Diagnostic Industry, January 2009.

Taking the median of 7 percent, 7 percent of $100 billion is $7 Billion.