A bitter pill for pharmaceutical counterfeits: Behind China’s serialisation technology

Publication Type

Case

Publication Date

8-2021

Abstract

In January 2014, CITIC 21CN Technology Company Limited (CITIC), a firm that had been under the radar, took the Hong Kong stock market by storm after its stock price soared 372% upon Alibaba Group’s acquisition. Alibaba, the world’s largest e-commerce company, took a controlling stake of CITIC and subsequently renamed it AliHealth.

CITIC had operated a state-owned pharmaceutical product monitoring platform overseeing the massive supply chain of manufacturers, distributors, drugstores, and medical organisations in China. Developed in 2006, the proprietary system was used for pharmaceutical serialisation aimed at safeguarding public health. Using cryptography-based authentication and traceability technologies, the system efficiently traces illegal activities across the supply chain from manufacturing to point of use and expedites recalls of counterfeit medicine.

Given China’s plan to extend the serialisation mandate to all categories of medicine, the company appears poised for strong growth in the coming years. To scale the system, what more could have been done? Should the system adopt the latest blockchain technology? Should the company dedicate more effort to strengthen stakeholder engagement?

Students will learn how cryptography technology can be used in anti-counterfeiting solutions, especially on e-commerce platforms which has become a boon for fake goods. There are also opportunities for students to learn to differentiate between centralised and decentralised network systems (with reference to blockchain technologies), determine stakeholder salience and buy-in, as well as evaluate entrepreneurship exit options.

Keyword(s)

Pharmaceuticals, Web-based technologies, Information Systems, Software development and engineering, Blockchain, Entrepreneurship

Discipline

Entrepreneurial and Small Business Operations | Pharmacy and Pharmaceutical Sciences | Software Engineering

Research Areas

Strategy and Organisation

Data Source

Field Research

Industry

Pharmaceutical

Geographic Coverage

China

Temporal Coverage

2014

Education Level

Executive Education; Postgraduate; Undergraduate

Publisher

Singapore Management University

Case ID

SMU-21-0009

Comments

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Additional URL

https://cmp.smu.edu.sg/case/4946

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