It’s not unusual that counterfeiting has infested the pharmaceutical industry on a large scale. Fake medicines often make their way into the sector at different phases of the supply chain. It’s a cause of concern for governments, pharmaceutical companies, and patients alike. As a result, governments across the world are working on implementing regulations to make the drug supply chain more traceable and trustworthy. Duplication of medicines is a cause of concern for governments, manufacturers and most importantly patients.
The US Drug Supply Chain Security Act will be implemented soon. The act lays down strict rules for pharmaceutical tracking, tracing, authentication and numbering. On the other hand, FMD (Falsified Medicines Directive) laid down by EU (European Union) also highlights similar rules that will be implemented in the coming year. The implementation of stringent rules to make drug sector free from counterfeiting is a great move but, compliance to the same is a major challenge.
Blockchain technology is known for tracking and serialization. Due to these two features, big drug companies like Merck and Pfizer have incorporated blockchain to sync with new drug laws in the US and EU. Over the past few years, blockchain has moved into new industries apart from banking and financial sector. Blockchain technology is being implemented in different industries and will prove to be revolutionary for the pharmaceutical sector.
The technology creates a decentralized ledger that allows the creation of a single database with permanent records. This cannot be changed or manipulated by companies, distributors, stockists and other stakeholders. The system makes it easy to trace the origination of the drug, where it was distributed, sold and purchased thus making the entire process transparent and secure.