The Pharmaceutical Industry Should Adopt Blockchain Technology

Time Stamp: April 24, 2022 12:30 AM
Source Node: 1277020

The pharmaceutical industry plays a vital role in reaching healthcare goals. Blockchain has already been around for over a decade, and its application spans nearly every industry. But there is no doubt that blockchain technology has an array of use cases in various sectors. However, many experts claim that there are none better suited for it than a sector like the pharmaceutical industry. Many believe that there are several reasons why pharmaceutical companies and hospitals should adopt blockchain. Improving The Drug Supply Chain Traditional drug distribution channels are slow and inefficient. A small number of pharmaceutical companies control the entire process. This, in turn, makes it easy for unscrupulous people to game or exploit systems.  For example, if you need to get your hands on a powerful opioid painkiller, you would need to find an unscrupulous distributor at each supply chain step who would be willing to move product from point A to point B for money. But unfortunately, there are loopholes built into that system that criminals can take advantage of in many cases. For example, they could mislabel drugs as one type when they’re another. This means law enforcement does not know what kind of drugs are making their way onto store shelves and into communities.  So, by adopting blockchain technology, everyone along a supply chain can track vital information—from shipments to warehouse inventory to patient data. Sharing critical information among different entities in real-time could potentially save lives or prevent serious issues. And it’s not just about safety—it’s also about cutting costs and improving efficiencies so that companies don’t need as many warehouses or store a large inventory of products (which they have to pay for). Tracking and Verifying Drugs The US government has recently passed the Drug Supply Chain Security Act, which requires all pharmaceutical manufacturers to establish a standardized and uniform system for tracking and verifying drugs.  Using blockchain technology would give the pharmaceutical industry a more accurate way to track the production and distribution of medications.   For example, Pfizer’s blockchain project, PharmaLedger, enables patients to scan a two-dimensional matrix on a drug package to obtain a copy of its digital leaflet. This 2D matrix will contain the drug’s serial number and recognize the manufacturer. Then, the patient can scan this code and request the most recent digital leaflet from the pharmacy. Securely Sharing Patient Data Suppose a pharmaceutical company wants to initiate a clinical trial with a blockchain platform. In that case, they could use that system to securely share patient data between hospitals, doctors, and patients and even receive payments from them.  In addition, Blockchain protects patient privacy as no one party can see information about individual patients’ prescriptions. Only a general prescription history is available. This greatly reduces fraud since blockchain is difficult to hack into (though not impossible).  With anonymity and accuracy comes trust. Most customers will be far more willing to purchase prescription drugs online if they know that they receive authentic products and no one else has access to their information. There’s also less chance of duplicate billing since patients do not have to provide their personal information each time they need medication. Protecting Against Counterfeit Drugs Counterfeit medications aren’t just unsafe—they’re a costly problem for the pharmaceutical industry. In fact, about $200 billion of counterfeit drugs are sold every year. However, by recording product histories and changes on a blockchain, pharmaceutical companies can prevent counterfeiting.  Counterfeit drugs can cause illness and even death, so implementing blockchain technology could save lives and money at almost no cost to drug manufacturers. So, due to its decentralized ledger and public view, the blockchain proves that each dose of medication was manufactured at a specific location at a specific time. This effectively reduces opportunities for counterfeiting. That’s why companies like Pfizer are investing in blockchain technology to track their supply chain and combat counterfeit medications from reaching their customers. Cost Savings Through Transparency And Automation Blockchain helps create transparent supply chains which improve the visibility of a drug’s journey from manufacturer to distributor. It also provides regulatory requirements, ingredient specifications, temperature incursion, contractual information, contamination, and packaging components.  In addition to these benefits, it can improve data collection and transparency among sponsors and regulators. Therefore, the pharmaceutical industry should embrace blockchain technology for transparent supply to improve transparency and efficiency. And it should consider introducing it as part of its broader digital transformation strategy. Potentially Protecting Against Malpractice Claims Blockchain technology can also potentially protect pharmaceutical companies from malpractice claims uniquely. Data is stored on a decentralized database and kept safe from hacks or other security breaches using smart contracts. That could have some significant benefits for drugmakers.  Drugmakers face thousands of lawsuits each year due to dangerous or ineffective drugs (and many settle out of court). So if your company is … Continued

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