Can Blockchain Eliminate Fake Drugs in The Pharmaceutical Supply Chain?

Fraudulent activities in the pharmaceutical sector are a global threat where scams and fake products have the potential to take one's life in any sphere of medicine. The problem can be dealt with systematically and through scientific medicine. Each phony medicine that plugs into the system inflicts harm to the health of millions each year. There are medicines out there that can worsen someone's health condition, and these "miracle cures" are extremely dangerous for one's health. The methods employed to monitor the sales and circulation of these fake products can help curb the issue. Still, they will be inefficient in eradicating the entire problem. One of the most feasible options that was put forth is the development of blockchain technology.

By improving existing processes, blockchain can potentially change how data and information systems are handled. This points to the question: Can these systems be trusted to resolve the issue of fake medicine within a supply chain? Before concluding, it would be wise to look more in-depth into how blockchain can help secure the medicine supply chain.

Understanding the Scope of Counterfeit Drugs

As previously pointed out, control over blockchain can be used to combat hacking. It is estimated that around 10% of the drugs across the globe have a counterfeit version, and the numbers are even higher in Asia and other developing countries where the healthcare and economic conditions are below average.

Mistakes do happen within fraud detection measures; however, fake medicine has and always will manage to pass the borders. Some medicines contain incorrect ingredients, improper dosages, or, even worse, completely different ingredients.

Pharmaceutical Supply Chain Management Problems

Let's shine a light on the additional issues that are often experienced in pharmaceutical supply chain management:

1.      No Newer Methods of Logistics Are In Use:

The movement of drugs has always been critical, with the problem lying in the fact that violators seemed to find ways to move the drugs, and an entire set of solutions were crafted for them.

2.      Alteration and Deceptive Practices:

Tampering with package labeling supplies allows fake drug packages to be sold in the physician's market.

3.      Legal Weaknesses:

Many economies struggle to implement strict legislation that is crucial to protecting the supply chain.

Can Blockchain Technology improve the pharmaceutical supply chain?

Blockchain technology can change the troublesome activities in the pharmaceutical industry. It leads to innovation in the pharmaceutical industry by improving system security and blocking fake medicine from reaching consumers, which is something blockchain technology targets.

1. Increased Visibility of the Drug Supply Chain

Because every single aspect of the life of a drug, from its manufacturing to its distribution, is documented, the term end-to-end traceability explains exactly how it is accomplished. Here is how:

- Manufacturers place records of production on the blockchain.

- Wholesale distributors check and verify the documents before dispatching them.

- Pharmacies and other healthcare providers access the blockchain record before dispensing medication to a patient.

Because of the way the system is designed, it is almost impossible for counterfeit drugs to go undetected.

2.  Immutable Drug Data

One significant benefit of blockchain technology is the ability to record data in a decentralized and tamper-proof manner. This feature singlehandedly makes problematic changes to drug data records a non-issue.

For example, a pharmaceutical entity would enter the production date, batch number, and expiration date along with several other details for that drug's record. These can only be changed in ways that are made clear to everyone else, so these systems can relax knowing that the drug's origin is completely safe.

3.   Automated Regulations with Smart Contracts

Smart contracts are created by computer programmers and stored on blockchains. Unlike traditional contracts, which require approval from every party before anything can be executed, smart contracts check if every party in the supply chain is playing by the rules to ensure compliance.

For example, a smart contract can:

- Prevent shipment of sensitive materials or goods without prior safety approval.

- Alert authorized users about sensitive information or anomalies.

- Release funds based on verification and submission of appropriate evidence.

Smart contracts aid pharmaceutical companies in reducing human error and enhancing productivity.

Case Studies of Blockchain Implementation in the Pharma Domain

IBM Pharma Blockchain Network

IBM developed a system to trace drugs accurately using blockchain technology. It helps pharmaceutical companies, wholesalers, and regulators authenticate medications in real time.

MediLedger Project

The MediLedger Project is spearheaded by famous industry leaders like Pfizer and Genentech. Using blockchain technology, it seeks to enhance transparency within the pharmaceutical supply chain and prevent counterfeit drugs from being sold by ensuring every transaction is verified and traceable.

Challenges Encountered in The Application of Blockchain Technology in The Pharmaceutical Sector

There is increased adoption of blockchain in the pharmaceutical industry. However, there are a few challenges:

1.      Implementation Expenses: Training personnel and purchasing specialized equipment and infrastructure require capital and time.

2.      Loophole in Regulations: Legislation concerning the application of blockchain technology in pharmaceuticals should be developed by managing and governing bodies.

3.      Limited Scalability: The complexity of data systems developed for global supply chains makes their management inefficient.

4.      Widespread Adoption: Participation from every entity in the supply chain is needed, which is not always possible.

What Can Blockchain Do in the Ongoing Fight Against Drug Fraud?

More development is still needed, but the potential benefits of using blockchain in the pharmaceutical industry cannot be ignored. The use of blockchain for counterfeit medicine fraud can drastically improve drug traceability, drug security, and company compliance. The extent of the industry's cooperation and the set governmental policies will define its success.

Explore more information on blockchain and its implications in medicine. To understand how blockchain and other technologies are revolutionizing healthcare services, pick up "Digital Healthcare" by Tedrick Bairn. This book discusses innovative approaches to current healthcare problems and offers perspectives on future medical technology.

Conclusion

Fake medicines pose a dire threat to global health, and blockchain can significantly improve security and trust in the pharmaceutical supply chain. Indeed, there are challenges associated with precision block technology, but as stated before, the technological advancements outweigh the negative consequences. With time and industry collaboration, blockchain technology can help remove counterfeit medication so patients can receive genuine medicine.

For more insights on the recent digital evolutions in healthcare, read Digital Healthcare by Tedrick Bairn to learn how innovations are reforming the industry.