Delays to track and trace laws affect Domino

10-Dec-2008 - Last updated on 10-Dec-2008 at 15:33 GMT

Related tags Domino Pharmacology European commission

Efforts to sure-up pharma track and trace rules and combat counterfeiting are a significant opportunity for specialist labelling firms, but the pace of change is proving to be a frustration, according to Domino Printing Sciences MD, Nigel Bond.

Bond was speaking with in-PharmaTechnologist after the release a mixed set of 2008 financials that included a 9 per cent jump in revenues, to £253.4m ($375m) and a one off-charge of £8.3m for restructuring that led to a 21% drop in pre-tax profits.

He explained that: “While the pharmaceutical industry [which currently generates around 10 per cent of the firm’s revenues] is an exciting and expanding area of Domino’s business, the frustration is the pace with which new [track and trace] legislation is being enacted.”

In May, the European Commission (EC) released data showing that over 4m fake medicines were seized in 2007 and commented that drug and pharmaceutical ingredient traceability must be improved in order to combat fakes.

However, the complexity of the global supply chain, the need to consider multiple stakeholders and competition between labeling technologies mean that a new regulatory framework is taking a long time to emerge.

Currently the EC, which recommended a traceable pedigree system in its May consultation document, is collating industry responses before proposing new rules. Meanwhile, US’ ePedigree legislation that was to be trialled in California by 2011 has recently been pushed back to 2015.

Despite his comments, Bond was positive about the benefits of the improved laws to manufacturers, patients and Domino’s business whenever they are eventually introduced.

In August, Domino bolstered its drug sector offering with the €15.2m ($19.7m) acquisition of Germany’s Alternative Printing Services (APS), which specialises in the production of 2D barcodes suitable for product tracking and authentication.

Before this in 2006, Domino signed a deal with Systech to integrate the latter’s TIPS Serialised Product Tracking methods into its marking and coding technology as a solution to combat counterfeits

Clients cut capital outlay

Regarding Domino’s fiscal 2008 performance, Bond said that the restructuring operations it carried out, which include a 10 per cent workforce reduction, had been driven by poorer second half-year machine sales as clients cut capital expenditure in the difficult economic climate.

He also countered criticism that 5 per cent of Domino’s revenue growth was due to currency fluctuations, explaining that for every other year during his decade long tenure the money markets had moved against the firm.

Bond added that: “I am more interested in the underlying performance of the company, which has been good particularly in our spares and services division [which represent 60 per cent of Domino’s business].”