Sub-Project A-71 · ICSETEP
Development and Effective Application of AI-Based, Post-Quantum Cryptography-Enabled Counterfeit Medicine Identification Tools for Better Treatment Outcomes in Bangladesh.
Department of Computer Science and Engineering, Daffodil International University. Funded by the Government of Bangladesh and the Asian Development Bank under the UGC RDG-ICSETEP project.
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01 / The story
A forgery does not have to be good. It only has to be good enough to hand over.
Counterfeit medicine is not a manufacturing problem that happens to involve drugs. It is a supply-chain problem: somewhere between the plant that made a genuine product and the pharmacy that sold it, something else was put in its place — and every party in between handled it believing it was the real thing.
That is what makes it hard to see. A forger does not need to replicate the medicine; they need to replicate the pack. The tablet, the vial, the carton, the batch number and the expiry date are all things that can be looked at and copied, and a copy that survives a glance at the counter has already done its job[16]. The patient is the last person in the chain and the only one with no way to check.
© The Daily Star
© The Daily Star
© The Daily Star

It is not hypothetical, and it is not rare.
The reporting below is Bangladeshi, published, and spans two decades. Every headline is the outlet’s own.
- FeatureThe Daily StarThe deadly world of fake medicineOpens on a two-and-a-half-year-old who died after being given a falsified product.Read at The Daily Star
- ReportThe Daily StarFlour balls for medicines!Counterfeiters targeting widely sold brands — Naproxen-Plus and others — with flour pressed into tablets.Read at The Daily Star
- ReportThe Financial ExpressMedicines made of flour!The same substitution reported independently.Read at The Financial Express
© Dhaka TribuneFeatureDhaka Tribune · 2024-04-30Devil in disguise: Health concerns mount over rising tide of fake medicinesOn how abundant falsified product has become, life-saving medicines included.Read at Dhaka Tribune- ReportNew AgeCounterfeit medicines flood markets across BangladeshSpurious, unregistered and banned medicines reaching pharmacies nationwide.Read at New Age
- ReportDaily Sun · 2025-12-20Market flooded with counterfeit medicinesCounterfeit trade rising alongside the price of genuine medicine.Read at Daily Sun
© The Business StandardReportThe Business Standard · 2024-04-07Health sector in peril as adulterated drugs rampantNotes that no imprisonment for manufacturing adulterated drugs is on record.Read at The Business Standard
© The Daily StarFeatureThe Daily StarWhy your drugs don’t workOn the storage and cold-chain conditions that degrade a genuine product before it is dispensed.Read at The Daily Star
02 / The scale
How much of what is sold is not what it says it is.
Every figure below is a floor rather than a total. Counterfeit medicine is measured by what testing and enforcement happen to reach, and anything that worked well enough not to be questioned is never counted at all.
© The Business Standard600crore taka / year
Counterfeit medicine traded annually, on the drug makers’ own estimate — out of a Tk 18,000 crore market.[1]
~10% of antibiotics
Share of antibiotics sampled in Dhaka found counterfeit, adulterated or substandard. Outside Dhaka, researchers put it near twice that.[2]
2,500crore taka
Estimated value of fake medicine circulating in the open market at any one time.[3]
- Counterfeit
- Tk 600 crore3.3%
- The market it hides in
- Tk 18,000 crore
Three per cent sounds survivable until it is read the other way round: it is the share by value, not by dose, and the cheapest products are the easiest to copy. A patient has no way of knowing which side of the bar the pack in their hand came from — which is the entire problem, stated arithmetically.
What is actually on the record.
There is no published year-by-year total of counterfeit medicine seized in Bangladesh — the DGDA reports enforcement activity for some years and not others, and the reporting covers individual raids rather than national figures. So this is the record as it exists: documented cases, each with the figure its own source states.
1991
76 children died after taking adulterated paracetamol syrup
76 deaths
The first mass-casualty event on record. A child kidney specialist raised the alarm over adulterated drugs the same year.[7]
2009
28 more children died, from a second adulterated paracetamol
28 deaths
Eighteen years after the first. The product was traced to Reed Pharma.[7]
2013
Fake and unauthorised medicine seized at Mitford
≈ US$ 640,000
Taken from the country’s central wholesale medicine hub — the point product passes through on its way to pharmacies nationwide.[8]
2020
A factory inside a house, supplying Mitford for two years
Tk 10 crore destroyed
Fake medicine, cosmetics and sanitiser destroyed by a mobile court in Barishal. Two men were jailed for a year and fined Tk 5 lakh each.[10]
2017–2021
Cumulative enforcement against manufacturers
Tk 27 crore fined
34 cases filed against firms over manufacturing fake medicine, and 202 mobile courts run, in the four years to 2021.[6]
2023
A year of DGDA drives
Tk 1.73 crore fined
1,696 mobile courts, 8 drug courts and 447 magistrate courts. The same reporting notes no record of anyone imprisoned for manufacturing adulterated drugs.[5]
2023
The High Court orders compensation for the 104
Tk 15.6 crore awarded
Tk 15 lakh to each family of the 76 children who died in 1991 and the 28 who died in 2009 — a reckoning arriving thirty-two years after the first of them.[7]
03 / Who pays
Three losses, from one substitution.
The manufacturer
A falsified product carries a real company's brand. The revenue goes to whoever made the copy, and the failure — when the medicine does not work — is attributed to the company whose name is on it. It loses the sale and the reputation in the same transaction.
© Dhaka TribuneReportDhaka Tribune · 2026-05-26Crisis deepens as fake goods flood Bangladesh marketsThe prevalence of fake, adulterated and low-quality product rising exponentially.Read at Dhaka Tribune
© The Business StandardReportThe Business Standard · 2025-08-18Lazz Pharma fined Tk5 lakh for selling counterfeit meds in KhulnaA counterfeit sold through an established retail chain, over a long period.Read at The Business Standard
© bdnews24.comReportbdnews24.com · 2018-02-19Apollo Hospitals in Dhaka fined for selling counterfeit drugs, keeping expired reagentsFalsified product found inside a major private hospital — the end of the chain, not a back-street pharmacy.Read at bdnews24.com
The patient
An under-strength or inert product is not a neutral event. A course of antibiotics that does not clear an infection leaves a resistant one behind; a cardiac or oncology product that under-delivers spends a window that does not reopen.
© Dhaka TribuneReportDhaka Tribune · 2023-11-15High Court orders to compensate families of 104 children killed by fake syrupA single falsified paracetamol syrup, 104 children dead, and a compensation verdict decades after the fact.Read at Dhaka Tribune
© Dhaka TribuneReportDhaka Tribune · 2024-06-15Minister orders drives against fake anesthesia drugs across BangladeshFalsified anaesthetic — a product whose failure is discovered mid-operation.Read at Dhaka Tribune
© The Daily StarReportThe Daily StarKnow your medicineA manufacturer introducing its own verification method for two of its products — the industry reaching the same conclusion this project starts from.Read at The Daily Star
The treatment
The deepest cost is epistemic. When a course fails, nobody can separate a wrong diagnosis from a right one served by a fake — so the conclusion drawn is that the treatment does not work, and the next prescription is written against evidence that was never real.
© The Daily StarFeatureThe Daily StarCountering counterfeit medicine in BangladeshOn the scale of drug adulteration and what countering it would take.Read at The Daily Star
© The Daily StarEditorialThe Daily StarPharmacies must be better regulatedLack of registration and oversight at the counter where medicine actually changes hands.Read at The Daily Star
04 / The same patient
Same person. Same prescription. Two outcomes.
Hold everything constant — the condition, the molecule, the dose, the fact that the course was completed exactly as directed — and change one thing: whether the pack contained what the label promised.
© The Business StandardTreated at home
- Condition
- Hypertension
- Prescription
- Same molecule, same dose
- Pack bought
- Locally, from a licensed pharmacy
- What was in it
- Under strength, or no active ingredient at all
- Course completed
- Yes — as directed, in full
Still ill.
Nothing in the encounter told anyone the medicine was the problem. The likeliest conclusion drawn is that the treatment does not work here.
Treated abroad
- Condition
- Hypertension
- Prescription
- Same molecule, same dose
- Pack bought
- Abroad, from a licensed pharmacy
- What was in it
- What the label said
- Course completed
- Yes — as directed, in full
Recovered.
The same prescription, filled from a supply the patient had reason to trust. The difference was never the medicine — it was whether the pack held it.
05 / What it costs the country
Lost trust is an export.
The chain from a failed course of treatment to a drain on foreign reserves is short, and each link follows reasonably from the one before it.
© Dhaka Tribune01
Treatment fails
A course of medicine does not work. Neither the patient nor the prescriber can tell whether the diagnosis, the drug or the product was at fault.
02
Trust goes
Once a failure is suspected to be the medicine itself, confidence in what is sold locally does not recover on its own.
03
Patients travel
Those who can afford it seek treatment abroad — and buy their medicine there too, because that is the part they stopped trusting.
04
Reserves leave
The money goes out twice: once for the treatment, and again for the medicine carried home.
~800,000patients / year
Bangladeshis believed to travel abroad for medical treatment each year. The source states plainly that exact figures are unavailable.[12]
$5bnper year
Spent on treatment abroad annually. A separate estimate, from the Dhaka Chamber of Commerce and Industry, puts it at $4 billion.[13]
482,000to India in 2024
Bangladeshis travelling to India for medical purposes — about 52% of all its inbound medical tourists, down from 500,000 in 2023.[13]
- Spent abroad, per year$5.00bn
- Spent by patients on treatment abroad, per year
- National health budget$3.38bn
- Government health budget, FY2025-26 (Tk 41,408 crore)
- India
- 57%
- Thailand
- 20%
- Singapore
- 20%
- Elsewhere
- 3%
Where a forgery is not a financial problem.
In most categories a falsified product costs money and time. In these, it costs the outcome the treatment existed to secure.
- Cardiac stents
- Implanted once, under emergency conditions, and never inspected again. A substandard device fails inside a patient.
- Cancer drugs
- Dosage is calculated to the milligram against a narrow therapeutic window. An under-strength vial is an untreated course that looks treated.
- Cancer therapy courses
- Delivered over months at great cost. A falsified product spends the one window the disease allows.
06 / Today’s defence
Everything on the pack can be printed by whoever printed the pack.
The defences in use today are physical: a distinctive design, a hologram, security printing. Each raises the cost of forgery. None of them changes the fundamental position, which is that the feature is a thing to be looked at — and anything that can be looked at can be reproduced closely enough to pass being looked at.
Sample A
Sample B
One of these is genuine and one is forged. Nothing you can see distinguishes them — and nothing a pharmacist, a wholesaler or a patient can see distinguishes the real pair either.
- Distinctive packaging
- A pack design a buyer learns to recognise.Reproducible by anyone with the printing equipment the original was made on.
- Hologram
- An optical feature that is difficult to print.Difficult is not impossible, and the forgery only has to convince someone who has never held a genuine one beside it.
- Security printing
- Microtext, guilloche, colour-shifting inks.Verifiable only by someone trained and equipped to verify it — which is not the person buying the medicine.
The second defence is enforcement, and it arrives afterwards.
Raids, fines, destroyed stock and, since the Drugs and Cosmetics Act, a maximum penalty of life imprisonment. Every one of these is a response to product that has already been made, already been distributed and, in most of the cases below, already been sold. Deterrence is worth having. It is not the same thing as a pack that can be checked before it is swallowed.
© The Daily StarReportThe Daily StarLife term for manufacturers of fake drugsThe Drugs and Cosmetics Act 2023 raising the maximum penalty to life imprisonment.Read at The Daily Star
© Dhaka TribuneReportDhaka Tribune · 2023-02-06Draft law approved for life imprisonment over making adulterated drugsThe same law at draft stage, with WHO guidelines named as the standard.Read at Dhaka Tribune- ReportThe Financial ExpressLife term for producing counterfeit drugsThe penalty reported independently.Read at The Financial Express
© The Daily StarReportThe Daily Star7 busted with counterfeit medicinesSeven arrests by Dhaka Metropolitan Police detectives.Read at The Daily Star
© The Daily StarReportThe Daily StarFake medicine, cosmetics worth Tk 10cr destroyedA makeshift factory found by a mobile court in Barishal.Read at The Daily Star
© The Financial ExpressReportThe Financial Express · 2022-08-24Six arrested in Dhaka for manufacturing counterfeit Ayurvedic medicinesA RAB operation against a manufacturing and selling operation.Read at The Financial Express
© The Business StandardReportThe Business Standard · 2026-07-13Govt to continue drive to stop supply of counterfeit medicines: Health MinisterThe Directorate General of Drug Administration continuing its drives.Read at The Business Standard
Not safe enough.
07 / What we propose
Stop asking the pack to look right. Ask it to prove something only the manufacturer could.
A signature is not a feature of the packaging; it is a mathematical statement about it. A forger with a perfect press still cannot produce one, because producing one requires a private key rather than a printer — and the standards below are chosen so that this stays true once quantum computers can break the cryptography protecting the rest of the chain[17][18].


01
Hash
Every pack gets a unique identifier bound to its batch, its strength and its date, condensed to a fixed digest that changes completely if any of it is altered.
02
Sign
- ML-KEM · FIPS 203
- ML-DSA · FIPS 204
The digest is signed with a lattice-based key only the manufacturer holds. A forger can copy the code; they cannot produce a signature that verifies against the manufacturer’s public key.
03
Record
Each custody event — release, distribution, dispensing — is appended to a shared ledger, so a code presented twice in two places is visible as exactly that.
04
Explain
A model reads the pack and returns a calibrated verdict with the evidence for it — which features it weighed and how far each sits from the genuine population — rather than an unexplained yes or no.
References
Where each figure comes from.
[1]
[2]
A comprehensive analysis of selected medicines collected from private drug outlets of Dhaka city, Bangladesh in a simple random survey
Scientific Reports (Nature) · 2022-01-10
www.nature.com/articles/s41598-021-04309-1 ↗[3]
Countering counterfeit medicine in Bangladesh
The Daily Star · 2022-02-27
www.thedailystar.net/health/news/countering-counterfeit-medicine-bangladesh-2971806 ↗[4]
Market flooded with counterfeit medicines
Daily Sun · 2025-12-20
www.daily-sun.com/bangladesh/847000 ↗[5]
Health sector in peril as adulterated drugs rampant
The Business Standard · 2024-04-07
www.tbsnews.net/bangladesh/health/health-sector-peril-adulterated-drugs-rampant-824446 ↗[6]
Counterfeit medicines flood markets across Bangladesh
New Age
www.newagebd.net/article/150157/counterfeit-medicines-flood-markets-across-bangladesh ↗[7]
High Court orders to compensate families of 104 children killed by fake syrup
Dhaka Tribune · 2023-11-15
www.dhakatribune.com/bangladesh/court/331118/high-court-orders-to-compensate-families-of-104 ↗[8]
The deadly world of fake medicine
The Daily Star
www.thedailystar.net/the-deadly-world-of-fake-medicine-37915 ↗[9]
Flour balls for medicines!
The Daily Star
www.thedailystar.net/news/bangladesh/news/flour-balls-medicines-3041201 ↗[10]
Fake medicine, cosmetics worth Tk 10cr destroyed
The Daily Star
www.thedailystar.net/city/news/fake-medicine-cosmetics-worth-tk-10cr-destroyed-1915045 ↗[11]
Why your drugs don’t work
The Daily Star
www.thedailystar.net/news/bangladesh/special-read/news/why-your-drugs-dont-work-1465561 ↗[12]
To reverse medical tourism, we must strengthen local healthcare
The Daily Star · 2024
www.thedailystar.net/opinion/editorial/news/reverse-medical-tourism-we-must-strengthen-local-healthcare-3782891 ↗[13]
Medical Tourism: Why people go abroad and how Bangladesh can bring them back
The Business Standard · 2025-10-29
www.tbsnews.net/supplement/medical-tourism-why-people-go-abroad-and-how-bangladesh-can-bring-them-back-1271926 ↗[14]
Why Bangladeshis flee for medical treatment, and how to stop it
The Daily Star
www.thedailystar.net/opinion/views/blowin-the-wind/news/why-bangladeshis-flee-medical-treatment-and-how-stop-it-3841826 ↗[15]
Bangladeshis spend $4b annually for healthcare abroad
The Daily Star
www.thedailystar.net/business/news/bangladeshis-spend-4b-annually-healthcare-abroad-3759816 ↗[16]
Global surveillance and monitoring system for substandard and falsified medical products
World Health Organization · 2017
www.who.int/publications/i/item/9789241513425 ↗[17]
FIPS 203: Module-Lattice-Based Key-Encapsulation Mechanism Standard
NIST · 2024-08-13
csrc.nist.gov/pubs/fips/203/final ↗[18]
FIPS 204: Module-Lattice-Based Digital Signature Standard
NIST · 2024-08-13
csrc.nist.gov/pubs/fips/204/final ↗
