Blockchain technology will play a key role in supporting supply chain transformation in the healthcare sector by helping to reduce fraud and better manage quality in the manufacturing and distribution of pharmaceutical products, according to leading data and analytics company GlobalData.
Counterfeiting is a significant problem within the pharmaceutical industry, with the World Health Organisation estimating the cost to the industry of counterfeit drugs at over $30bn.
Bonnie Bain, Ph.D., Global Head of Pharma at GlobalData, comments: “This isn’t just a financial loss; it also reflects the fact that in some markets, notably emerging economies, relying on ineffective medicines represents a risk to public health.
“The challenge of tracking pharmaceutical products from lab to patient is a significant one, with multiple opportunities for external parties to introduce counterfeit products. The ability to trace the journey of an individual dose of medicine from the time of manufacture to the time it is administered could have a significant impact on patient safety and could dramatically reduce the financial losses associated with counterfeiting,” continues Bain.
A number of technology and pharmaceutical companies are working on innovative solutions that combine digital marking of pharmaceutical products with secure distributed ledger technology (blockchain) to provide a means to securely and reliably track products throughout their entire lifecycle.
Gary Barnett, Technology Analyst at GlobalData, says: “While the pharma industry is awash with blockchain hype, there are a number of segments where blockchain has the potential to play a transformational role, notably in managing the provenance of pharmaceutical products as they pass through the supply chain.”
“Blockchain is particularly interesting where a network of different players in different geographies have to coordinate their actions. The supply chain for pharmaceuticals is long, complex and very prone to abuse, so any technology that helps assure the provenance and quality of drugs will bring benefits to the industry and society at large,” concludes Barnett.
Companies like IBM are working on blockchain-based platforms that can securely track and trace products from the procurement of the raw materials, through to manufacture and consumption. Innovative new approaches to marking products like pharmaceuticals offer the potential to track the lifecycle of pharmaceutical products down to a single dose.
GlobalData’s Disruptor Database
GlobalData’s Innovation Explorer, a component of the Disruptor Database, decodes Blockchain technology deployment among other disruptive technologies, offering real world and impactful innovation examples and focused use cases related to the implementation of disruptive technologies by enterprises globally. Leveraging these healthcare-focused use cases, healthcare providers can validate their existing business models and refine their strategies to deliver next-generation products and services across healthcare.
GlobalData analyzes possible applications and advantages of blockchain solutions across various activities of the healthcare value chain including Research & Development, Supply Chain Management, Channels, Sales & Marketing, Regulatory, Security & Strategy and Patients & Consumers.
4,000 of the world’s largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely and better business decisions thanks to GlobalData’s unique data, expert analysis, and innovative solutions, all in one platform. GlobalData’s mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, financial, technology and professional services sectors.