To: Thomas Kubic, CEO, PSI

From: Zarek Shaikh, Analyst, PSI

Date: February 16, 2017
Subject: CBP Seizures 2016

Executive Summary:

A review of open source reports and the CIS database has been conducted to obtain
information regarding seizures of pharmaceuticals by the U.S. Customs and Border Protection
Agency (CBP) in Fiscal Year (FY) 2016, (10/1/15 to 9/30/16). The following is a summary of
the findings.

1) In FY 2016, the CBP and ICE conducted 31,560 seizures. Sixteen percent (16%) or 5,049
of these seizures involved pharmaceutical or personal care products. No further
differentiation is made in the public sector reports.

2) According to established methodology, in CY 2016, PSI recorded a total of 1,119 illegal

medicine seizure incidents involving the CBP.

3) A total of 138 unique products across thirteen different therapeutic categories. The top
three most often impacted therapeutic categories were the central nervous system (772),
genito-urinary (186), and hormone (70) categories.

4) In CY 2016, 623 incidents involved seizures under 1,000 dosage units conducted by the
CBP. The remaining 496 incidents involved seizures over 1,000 dosage units conducted
by the CBP.

5) The CBP initiated seizures across twenty-seven (27) states, Washington D.C., Puerto
Rico, and the Virgin Islands. New York was the site of the largest number of incidents at
481. Customs was involved in 122 incidents in Florida, fifty-four (54) in California, fifty-
four (54) in New Jersey, and thirty-nine (39) in Illinois.

6) Since recording began in September 2016, thirty-three (33) incidents reportedly occurred
in CY 2016 which involved the seizure of at least one pharmaceutical pill press.

This is a confidential report which may include PSI proprietary information. No external 1
dissemination is authorized absent the concurrence of PSI.