Big pharma turns to blockchain to track meds
From marketing innovations to enhanced data security, and from drug discovery to mobile-centric trials, its benefits abound. Especially now, when COVID has accelerated it, digital transformation can reshape the pharma industry from its fundamentals. As much as data might back this up, however, this is a rather bold statement — so let us elaborate. Subscribe for weekly pharma marketing insights. This is a very elusive, broad term that can often devolve into jargon, so grounding it is crucial.
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Big pharma turns to blockchain to track meds
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Pharma Companies Eyeing Blockchain for Fight Against Fake Drugs
End-to-End Supply Chain Insight. Blockchain is a software which provides a digital ledger system to log and record transactions by grouping them into chronologically-ordered blocks. These blocks are linked and secured on a peer to peer network using cryptography technology. As the technology is evenly distributed across a network of multiple computers, it has no centralized point of entry, giving added security from cyber threats.
The system is also built to be transparent and secure; those within the chain can view the individual block transactions but cannot alter those they are not a part of, they can only add further detail. Pharmaceutical supply chains are particularly complex, requiring the input of multiple stakeholders with a number of important requirements placed upon them. Currently the supply chain must allow multiple parties to update and share data, it must verify that such information can be trusted and it may have to interact with national and international verification systems, transport systems and regulatory bodies.
This brings a number of challenges. Naturally, having so many stakeholders able to input and change data adds complexity to the quality of the data. It is difficult to monitor and validate the correct information and secure against human error and missing documentation.
Interactions are often time sensitive, yet documentation may not always be managed quickly. There is also the overall issue of manufacturers, logistics companies, wholesalers and pharmacists not being able to have complete visibility on the authenticity of a drug and the quality while it is in transit.
It is hoped that blockchain could revoluntionize the pharmaceutical supply chain by enabling a simple single use system for all stakeholders, which would give transparency, security and oversight of the end to end delivery of goods. A blockchain based supply chain has a number of benefits. Firstly, it allows for a comprehensive overview of the entire end to end process. The full supply chain can be managed through one piece of software. It also gives enhanced transparency between the authorized stakeholders.
Each party can see the stages of the drug journey to ensure authenticity and quality. A single system also limits complexity. Once stakeholders understand how to use the platform and become comfortable with the process, they should be able to comply with ease.
Human error and loss of documentation will also be significantly limited. Another important benefit of blockchain is the added traceability and security.
Using a blockchain system, products can be tracked, traced and recalled when necessary. The system itself is also under a higher level of scrutiny and protection therefore is more secure. An audit trail created through the block system is an added benefit. With all relevant information stacked and recorded chronologically, both internal and external parties can review the entire chain when necessary.
In practical terms, at each stage of the process, barcodes would be scanned and recorded onto a blockchain ledger system, which in turn creates the audit trail for the drug journey. Every delivery can be tracked, with the delivery driver traced through biometric measures. Every checkpoint involving the drug can also be measured and recorded through a number of tools.
Sensors can also be incorporated into the supply chain, with temperature or humidity being recorded onto the ledger system. With a drug fully tracked from creation to patient, the supply chain can become a holistic, accurate, audited and secure process. A number of regulations across the world are now requiring full serialization across the pharmaceutical supply chain to allow products to be more closely tracked and limit the number of counterfeit drugs able to enter the market.
Estimates suggest that global sales for counterfeit drugs total hundreds of billion dollars per year. It is believed that between one to three per cent of all drugs in circulation in Western markets are counterfeit. Although many pharmaceutical companies are in the final stages of compliance with serialization, some are still considering the implementation of blockchain and how this could be utilized. According to Robert Celeste, founder of the organization, plugging tens of thousands of US pharmacies into a drug-tracking database is a huge challenge and blockchain is an attractive way to simplify that.
He notes that "from the blockchain point of view, there is still a lot of work to be done, but it is being done in earnest". Constantin Lichti from the Frankfurt School Blockchain Center agrees that "blockchain technology and current applications are still in [their] infancy" as the technology is only being explored in pilot projects.
Although, he does believe that blockchain will go on to have a "powerful impact" on the drug supply chain. A survey by the Pistoia Alliance of life sciences executives in supported this belief, with 83 per cent of respondents expecting blockchain to be adopted by the industry within five years. Dr Francisco Curbera, director of foundational technologies at IBM, hints that it might not be a long wait for the technology to be utilized as the experience with blockchain in other industries, particularly food, "have already demonstrated the potential of blockchain technology to address challenges in supply chain management".
Read more: Part 1 of our serialized guide to serialization. Following the announcement of the DSCSA, the FDA openly called for pilot projects that would address the three main challenges of the legislation; establishing a product identifier, quality barcodes and achieving interoperability.
On their website they state "our blockchain solution will enable improved supply chain security: no illicit product can enter the trusted network, or if it tries it will be identified.
Investigations and recalls will [then] be fast and accurate". The project formed a working group of pharmaceutical industry leaders, including Genentech, a member of the Roche Group, Pfizer, AmerisourceBergen and McKesson Corporation.
This group defined the industry requirements for the blockchain pilot, both for a prototype system and for an industry operating model. A second working group has now been developed of pharmaceutical industry stakeholders to evaluate blockchain use cases for financial transactions. Dale Danilewitz, CIO of AmerisourceBergen, told The Wall Street Journal, that the next phase of the project would expand the drugs and devices in the trial and also test verifications for returns from hospitals.
Speaking to the project, Eric Garvin, one of the co-founders, emphasized that this was an industry-wide collaborative initiative. He noted that "these are companies that are competitors, sitting in a room, trying to advance technology for a business need".
When speaking to Supply Chain Dive, he mentioned that Cardinal Health was set to join the project, which would mean all three major pharmaceutical distributors in the US would be collaborating on the project. Arun Ghost, blockchain leader at KPMG makes the argument that at this stage of development a blockchain solution will not necessarily displace existing software, but instead will augment it.
He believes that "with blockchain you can now get to a much lower grain of detail". For an industry with a number of sophisticated drugs, such as biologics which are expensive to develop and require specific methods of transport, this granular detail can give an added layer of security and insight. If there is a failure in the supply chain which impacts the drug, through blockchain and a broader Internet of Things system, you can pinpoint the exact issue, potentially in real time and address it.
In these instances, the insight gained from a holistic, blockchain based system could have a huge impact. Blockchain is still within an innovative phase, being tested and developed in pilot programs.
However, with success being seen across other industries and regulations requiring greater connectivity and oversight for the pharmaceutical supply, it may not be long until blockchain becomes a fundamental part of the supply chain. Reach Pharma Logistics professionals through cost-effective marketing opportunities to deliver your message, position yourself as a thought leader, and introduce new products, techniques and strategies to the market.
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You have the right to object. For further information on how we process and monitor your personal data click here. You can unsubscribe at any time. Tags: blockchain track and trace blockchain in logistics supply chain innovation. Blockchain offers a digital ledger system to securely record transactions on a peer to peer network in chronologically ordered and transparent blocks Pharmaceutical supply chains are particularly complex, requiring the input of multiple stakeholders with a number of important requirements placed upon them.
The pharmaceutical supply chain faces a number of challenges; numerous stakeholders with complex demands, a lack of transparency of the end to end process and time sensitive, but unorganized data It is hoped that blockchain could revoluntionize the pharmaceutical supply chain by enabling a simple single use system for all stakeholders, which would give transparency, security and oversight of the end to end delivery of goods. RELATED: Read our recent report on how blockchain can revoluntionize brand protection Benefits of a Blockchain based supply chain A blockchain based supply chain has a number of benefits.
Using blockchain all authorized stakeholders could have transparency over the end to end drug delivery process A single system also limits complexity. An important benefit of blockchain is the added traceability and security In practical terms, at each stage of the process, barcodes would be scanned and recorded onto a blockchain ledger system, which in turn creates the audit trail for the drug journey.
Blockchain post serialization A number of regulations across the world are now requiring full serialization across the pharmaceutical supply chain to allow products to be more closely tracked and limit the number of counterfeit drugs able to enter the market.
Global sales for counterfeit drugs total hundreds of billions of dollars per year Although many pharmaceutical companies are in the final stages of compliance with serialization, some are still considering the implementation of blockchain and how this could be utilized. Read more: Part 1 of our serialized guide to serialization Spotlight on MediLedger Following the announcement of the DSCSA, the FDA openly called for pilot projects that would address the three main challenges of the legislation; establishing a product identifier, quality barcodes and achieving interoperability.
A second working group has now been developed of pharmaceutical industry stakeholders to evaluate blockchain use cases for financial transactions A second working group has now been developed of pharmaceutical industry stakeholders to evaluate blockchain use cases for financial transactions.
A replacement system or an augmented system? The next frontier for the supply chain Blockchain is still within an innovative phase, being tested and developed in pilot programs. Follow Us. Latest Webinars How to reduce risk while increasing speed with labelling structured content PM - PM CET Reduce risk by using a technology platform that standardizes the content collation process, defines Facilitating supply chain collaboration with blockchain technology.
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Blockchain in pharma
However in , the conversations around blockchain have turned inward, and in some cases, pessimistic. Blockchain data on our supply chain will illuminate areas that are inefficient in various lanes and supply chain management. This makes their products primed for the transparency that blockchain can provide. Using blockchain, a company like Bristol-Myers Squibb, for example, would have access to robust supply chain data location, hauler, ambient- and product-level temperatures within the trailer or container from various logistics providers.
Walmart Prescriptions Are Heading to Blockchain
The future of blockchain is near and banking isn't the only industry affected. See how law enforcement, ride-hailing, and others could also be impacted. What began as the basis of cryptocurrencies such as Bitcoin, blockchain technology — essentially a virtual ledger capable of recording and verifying a high volume of digital transactions — is now spreading across a wave of industries. Industries from insurance to gaming to cannabis are seeing blockchain applications. Ultimately, the use cases for a transparent, verifiable register of transaction data are practically endless — especially since blockchains operate through a decentralized platform requiring no central supervision, making them resistant to fraud. Download our free report to get all the trends. Here are the latest innovative ways companies are harnessing the power of blockchain. Blockchain and banking are just the beginning. From a macro perspective, banks serve as the critical storehouses and transfer hubs of value.
The Blockchain Boom
Countries like India and China specifically are very vulnerable to counterfeit products, as are several other Southeast Asian countries. Chennai is today known as a hub for cutting-edge medical care, with hospitals such as Aravind Eye and Apollo and some 42, pharmacies making it a nerve centre for both cutting-edge and affordable treatment for patients around the world. These counterfeit drugs had lethal consequences - a baby was killed when given fake medicines, and the government was jolted into action, announcing sweeping raids and arresting many people across this sordid operation. Despite these actions, there is little evidence that regulators have been able to stamp out counterfeit medicines both in India and worldwide.
Novartis explores blockchain’s potential for pharmaceuticals
There are many challenges in the pharmaceutical supply chain, from maintaining quality to security issues. Can blockchain provide the end-to-end visibility needed? In fact, pharma has spent the last 30 years as a consistently top-performing industry. Pharma businesses all along the supply chain, from research materials to drug manufacturing and sales, have achieved comfortable profits by holding fast to high quality and safety standards. But a recent decline in industry performance is causing companies to wonder what innovations are necessary to bring back rising revenues. Many of the problems could be considered the growing pains of an ever-expanding industry.
The application of blockchain in the pharmaceutical sector
Humans are inquisitive by nature. We seek details, information, and assurances regarding our actions and the associated outcomes. One area where we lack adequate auditability and transparency is the original source of our medicines. Patients must trust that pharmacists sell and supply medicines that come from reputable sources. Pharmacists, in turn, must ensure the medicines they receive from suppliers are fit for their intended purpose and have been securely stored and transported. Forward-thinking companies are looking to new technologies such as blockchain to provide visibility into medicinal sourcing and the journey a medicine takes to move from creation to the hands of an end user, whose quality of life depends on its authenticity.
It used to work the other way around, with IT persuading executives to adopt technologies. For Marco Cuomo and Daniel Fritz who support blockchain activities at Novartis, this presents a unique set of challenges and opportunities. Novartis has been experimenting with blockchain since and has run various proofs of concept PoCs.
When was the last time you were popping pills? No one wants to fall sick, but we all have at some point of time! What if you realize the medicines you are taking are adulterated? But much to your relief, blockchain hits the healthcare market as a savior technology. Although, these industries were the trailblazers in embracing blockchain, healthcare has also joined the bandwagon lately. Many healthcare organizations seem to be setting the pace on blockchain adoption because apart from the first mover advantage, they are also cognizant of the new efficiencies this technology brings.
In the urgent search for multipronged, coordinated solutions to the opioid epidemic ravaging the U. More than people in the U. The Institute sets the price tag for the economic burden for prescription opioid misuse in the U. Communities all over the U. Imagine the scale: Drug manufacturers reportedly shipped 20 million painkillers to a town of 3, people , sending on average more than 6, pills for each resident. Many factors contribute to this highly complex problem, but a few key issues stand out:.
Genentech Inc. Such blockchains would show each time a drug changed hands, and help companies detect tainted products before they reach the consumer, attorneys and industry leaders say. The FDA also has launched a pilot program encouraging companies to explore new technologies, including blockchain, to meet requirements taking effect in November. Wholesale distributors are looking to the technology to meet new rules under the Drug Supply Chain Security Act DSCSA , under which they will have to verify serial numbers on returned drugs before reselling them.
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