The National Center for Policy Analysis brief issued late last month warned about the increasing threat posed by foreign counterfeit drugs. Devon Herrick, a senior fellow at the NCPA, pointed out that Americans have the cost-effective option of heading to Wal-Mart to purchase generic drugs rather than risk ordering from unknown online sources.

(It’s true, and so Wal-Mart wins again. The retail behemoth offers something called the $4 Prescriptions Program in every state except North Dakota. There are many exclusions and ineligible drugs, however, so before taking Mr. Herrick’s advice, be sure to read the Program Details.)

The NCPA’s brief follows the noteworthy January 15 sentencing of Kevin Xu, 36, a citizen of the People’s Republic of China, to 6.5 years in federal prison without parole. Xu was indicted in August 2007 for using his company, Pacific Orient International, Ltd. (though online searches suggest it is instead “Orient Pacific International, Ltd.”) to export and distribute counterfeit pharmaceutical drugs into the United States and the United Kingdom.

A US Immigrations and Customs Enforcement (ICE) press release, gives a brief overview of Xu’s offenses:

“ICE and the FDA conducted an undercover investigation of Xu beginning in November 2006. Xu discussed with undercover agents his ability to manufacture branded pharmaceutical drugs and packaging for the drugs. He also provided an undercover agent with a list of 25 pharmaceutical drugs he could manufacture that included trademarked drugs manufactured and marketed exclusively by Pfizer Pharmaceuticals Inc., Eli Lilly Corp., Hoffman La Roche, AstraZeneca and Sanofi-Aventis. Xu later shipped Tamiflu, Plavix, Zyprexa, Aricept and Casodex to agents in Houston that appeared identical to the drugs manufactured by the legitimate trademark holder.”

Investigators estimated that Xu received more than $1.5 million for selling counterfeit pharmaceuticals around the world in 2007; more than $200,000 was income from U.S. sales.

The court also ordered Xu to pay $128,363 to Pfizer Pharmaceuticals and $1,157,697 to Eli Lily Pharmaceutical Company.

Xu bad.