Applied DNA Sciences, Inc., a provider of DNA-based security solutions, and Disc Graphics announce the signing of an exclusive distribution agreement. Disc Graphics , a leading source of specialty packaging solutions for more than 40 years, has been granted rights to distribute a unique DNA marker exclusively for the folding carton offset print sector and non-exclusively for pressure sensitive labels in North America. APDN received an initial payment from Disc Graphics and would receive minimum payments annually to maintain exclusivity.
Disc Graphics is using unique DNA taggants, developed specifically for them by APDN, in its labels and packaging business. Disc Graphics is well known in the industry for creating custom solutions to address their customers' needs and the use of DNA taggants offers a forensic package which will differentiate their product from competitors.
Disc Graphics has a dedicated sales force, which will be trained by APDN, with extensive selling experience to promote this technology. This represents APDN's first entry into the packaging market, with an initiative of potentially enormous scale. APDN is prepared to fulfill all needs, even as it grows in many other market verticals simultaneously.
The scourge of counterfeiting in packaging has greatly intensified in recent years. Counterfeiting has spiked, causing detrimental health concerns for consumers, safety concerns for law enforcement agencies, and financial concerns for businesses worldwide. As a result, the global anti counterfeit packaging market will reach about $82.2 billion by the year 2015, according to California-based Global Industry Analysts Inc.
DNA taggants are the most advanced and secure technology available to the printing and packaging industries to combat counterfeit products. APDN's SigNature DNA taggants offer a high level of security and flexibility in a cost-effective and easy-to-use format to suit the requirements and budget of any company.
"This agreement leverages DISC's broad customer base of high value brands and offers us a leading edge, forensic anti-counterfeit solution to combat the growing problem of counterfeit and grey market goods entering the supply and distribution chain," commented Margaret Krumholz, President of DISC. "Packaging is on the front line of fighting counterfeiters and we are excited to make DNA an integral part of our overarching package security program. Our core customers including major film studios, pharmaceutical manufacturers, fragrance and luxury brand companies all experience market erosion from counterfeit products and are searching for weapons to battle this multi-billion dollar problem."
Aside from the loss of revenue, one of the major issues with counterfeits is that while they might look identical, if the counterfeiter has used an inferior grade of material and the product fails, the perception of poor quality falls back on the original manufacturer. Steps are being taken at all stages of the manufacturing and distribution process to address the counterfeiting scourge.
"APDN can provide the means necessary to authenticate packaging and labels on all products including pharmaceuticals where a counterfeit product can cause illness or even death. Working with DISC will provide APDN with an introduction to brands and companies, expanding the exposure and market reach of the company. We are excited to share our technology with this market leader and believe that this will open up additional markets and customers for both companies," commented Dr. James Hayward, APDN President and CEO.