A significant opportunity has arisen for Applied DNA Sciences (APDN-OTC) and its anti-counterfeiting and diversion efforts…
On December 31, 2011, a bipartisan amendment to the 2012 National Defense Authorization Act (NDAA) new federal anti-counterfeiting law was passed requiring the Department of Defense, the Department of Homeland Security, and government contractors to make active efforts to detect and eliminate counterfeit parts in the military supply chain. As a result, any company that sells counterfeit products to the military could become legally and financially liable—whether or not they produced the fake component. Comprehensive details of the approved 2012 NDAA are available here.
The bipartisan amendment was passed in response to a Senate Armed Services Committee hearing on November 8, 2011, that exposed upward of one million counterfeit parts in the U.S. military supply chain—a significant safety risk to both military personnel and national security.
APDN has developed a beneficial and cost-effective anti-counterfeiting solution for government contractors and federal agencies affected by the new legislation, which could dramatically impact semiconductor, aerospace, and other sectors.
APDN’s anti-counterfeiting technology is currently funded by the Defense Logistics Agency (DLA) in an ongoing pilot program. In June 2011, successful preliminary results of a program to DNA mark and verify microchips used by the DLA were released, after which APDN was awarded a nearly $1 million follow-on contract to fully engage one of the government’s microchip supply chains. This ability to track and verify microchips and other products sold to the military supply chain—from the source to the end user—meets the requirements of the newly enacted anti-counterfeiting legislation. Ultimately, this technology could be expanded to benefit unrelated industries such as medical devices and the automotive industry—minimizing the costs and dangers of having counterfeit products in these supply chains.
We look forward to closely following APDN for any new contracts or customers that engage APDN’s anti-counterfeiting technology in an effort to meet the requirements of the 2012 NDAA and eliminate counterfeits from the military supply chain. Follow Crystal Research on Facebook or Twitter for continued news and announcements on APDN.
An overview of APDN’s anti-counterfeiting technologies and ongoing initiatives is available here. A full portfolio of independent stock research is available through the Crystal Research library.