PA Consulting Group is launching a new spin-out company, this time targeting the world's multi-billion dollar problem of counterfeit drugs.
The new business, Aegate, is expected to become a multi-million pound concern within five years, matching the outstanding performances of previous spin-outs, UbiNetics and Meridica.
Counterfeit drugs are not only a major cause of lost revenue for the pharma companies, they also kill patients. The problem lies in the time between drugs leaving the manufacturers and being dispensed by pharmacists.
Ian Rhodes, who is to head the new company, said: "Drugs can be sloshing around for up to three years and may change hands up to 30 times before reaching the patient."
Aegate will be operating a central database to which the drugs companies will subscribe for each drug. In turn, the drugs will each be marked with unique codes which are scanned by the pharmacist before being given to the patient.
A pilot run is about to begin and there are two remaining places on offer to Mid-Anglia pharmacists. This pilot will be completed in January when the new company will become operational, eventually employing up to 100 people in the Cambridge area.
Alec MacAndrew, PA's global head of technology, who is based at Melbourn, said: "This problem for the industry is getting worse and no one else has come up with this solution."
Mr Rhodes said: "The opportunity is enormous, and worldwide. The problem of counterfeit drugs is costing the industry billions of pounds a year, with the World Health Organisation estimating it at up to $40 billion.
"We have to be very careful as we don't want to cause alarm, but you do not really know what you are getting from the pharmacy."
Aegate will also tackle the problem of dispensing errors, known to cause 900 deaths a year in the US alone.
The pilot, involving 50 pharmacies, is being supported by BT and DHL. All those taking part need broadband/ADSL access.
Dr MacAndrew added: "This is the way we do ventures - rarely, but significantly."
