Pharma label specialist ATL adds to security portfolio

Label specialist ATL has licensed an anti-counterfeiting technology from Document Security Systems which will be offered to clients in the pharmaceutical industry.

The non-exclusive licensing deal will allow ATL to offer DSS' AuthentiGuard suite of technologies, and particularly its Bar Code Barricade feature, to its pharmaceutical label portfolio.

In turn, the deal will help DSS to expand its position in the healthcare sector, one of its strategic targets along with academic and government documents, parts and components and the financial sector.

Under the terms of the two-year deal ATL will manufacture security labels for its pharmaceutical clients using the technologies, with DSS receiving revenues based on a percentage of sales.

DSS says that its AuthentiGuard technologies are an effective optical deterrent that protect product labels from duplication with current models of digital copiers, imaging systems and scanners.

Commenting on the deal, Patrick White, DSS' chief executive, said: "This is a significant agreement for us as it provides DSS with new 'feet on the street' and a commanding sales presence in the critical pharmaceutical label industry, which is focused like never before on issues of anti-counterfeiting and security."

ATL specialises in security labels, multi-panel booklet labels and other medical and pharmaceutical labelling activities, and operates a US Food and Drug Administration (FDA) compliant manufacturing facility in Menomonee Falls, Wisconsin.

"Our bar code protection technology has been deemed critical due to recent bar code copy crimes that have been occurring in the pharmaceutical and retail industries," continued White.

DSS revenues rise in Q2

Meanwhile, DSS has published its second quarter 2010 accounts, revealing a hike in revenues to $3.33m from $2.25m a year ago, thanks largely to the contribution of Premier Packaging Corp which was acquired in the first quarter of this year.

The addition of Premier offset a 6 per cent decline in DSS' security and commercial print revenue. Overall, the company posted an operating loss of a little under $850,000 in the quarter, in line with the same period of 2009.