The Role Of Blockchain In Combatting Counterfeit Pharmaceuticals

INTRODUCTION

Source

Fake drugs and counterfeit pharmaceuticals are notorious things especially globally as it causes a risk to the health and causes huge damage to one’s finances. Many of the fake drugs contain the wrong ingredients, and the wrong dosages and contain poisonous materials making it dangerous to the consumers. It is challenging to track the provenance and authenticity because traditional supply chain networks rarely have transparency such as in the case with medicines.

Pharmaceutical companies can effortlessly track their products from the moment of manufacturing to the moment of dispatch by the assistance of Block Chain which is the Immortalizing and the securing technique provided. By using distributed ledgers, everyone from the manufacturers and up through the distributors and to the consumers can conclude whether or not each drug is real at every point in time. Alongside this reduce the possibilities of the counterfeit drugs entering into the merchandise.

Together with the blockchain based tracking, the companies offer controls and security measures adding up into the security of the supply chain to the regulatory enforcement and to the trust of the consumer. To combat falsified medications and augment drug security across the globe, nations and health authorities are in an investigation about the technology called a blockchain.

• ENHANCING TRANSPARENCY AND TRACEABILITY IN PHARMACEUTICAL SUPPLY CHAINS

The pharmaceutical supply chain is recorded using blockchain technology, which keeps a record of every transaction and makes it tamper proof. Everyone participating in the process, from acquisition of raw materials to distribution, has access to verifiable information that allows drugs to be authenticated at each point of the process so that counterfeits never enter the market.

By combining the solution with IoT devices, real time temperature monitoring and tracking of storage conditions and shipment details are possible, meaning that medicines are transported in safe conditions which minimizes waste and fraud. Smart contracts will also allow for automated compliance checks, adding an additional layer of security to the blockchain enabled supply chain.

Patients and healthcare providers can now verify the authenticity of a given drug by scanning a QR code or unique identifier because it is recorded on the blockchain. This opens up a healthcare transparency industry that will allow consumers more confidence while ensuring that they do not take fake medicines, ultimately contributing to the betterment of public health and safety.

• PREVENTING FRAUDULENT DRUG MANUFACTURING AND DISTRIBUTION

Criminals in the pharmaceutical industry are always looking for ways to take advantage of supply chain gaps while blockchain technology makes it nearly impossible to do so as it works in a decentralized manner and provides a tamper-proof environment where only validated entities can engage in drug sales.

Distributed ledgers ensure that neither forged nor unregistered medicines get sold to the public as the drug manufacturers will simply upload the batch records to the ledger. This counters the unregulated production and circulation of unapproved medicines like in the case of being able to operate online. The relevant authorities are able to manage and control supply chains to make sure the set standards are followed.

Source

In addition, suppliers and dealers are verified and authenticated using blockchain-based digital identities. This minimizes the entry of fraudulent players into the pharmaceutical sector since only authorized manufacturers and wholesalers are active in the ecosystem.

• STRENGTHENING REGULATORY COMPLIANCE AND QUALITY CONTROL

The standards and safety protocols of the Pharmaceutical sector must be followed strictly, according to the regulations. By using the blockchain approach, regulators would be able to access real time information related to the processes of drug production, storage, and distribution. This level of access and information would improve monitoring which in turn would minimize the chances of expired or low-quality drugs getting to the market.

The agencies that oversee drug regulation are able to leverage withdraw defective or counterfeit drugs within a minimal amount of time. This shortens the investigation period and helps greatly during health crisis times. For the time period that these agencies require further evidence, the records are auditable and may be stored permanently for compliance purposes.

In addition, smart reporting tools such as the blockchain lowers the amount of paperwork and human error existing within the compliance reporting structures. Once implemented in the blockchain, smart contracts are able to monitor regulations automatically in real time ensuring the adherence of the required protocols by the manufacturers and distributors. This correlates to improvements in healthcare and accountability in the pharmaceutical sector.

• PROTECTING PATIENTS AND REDUCING HEALTHCARE COSTS

Counterfeit medications, aside from endangering the health of the consumer, also increase the financial burden on the patient due to the increased difficulty in treating the caused illness. However, with the incorporation of blockchain, patients only get access to real medicine which help in in making sure that no undesired hospital visits and medication costs arise due to drug induced diseases.

Furthermore, insurance providers can adopt the blockchain technology in checking whether a certain prescription is selling medicines that were not authorized in the past. Since patients will only receive prescribed drugs, patient insurance fraud cases as well as misuse of medical resources is reduced thus bringing heath care within reach to more people.

Moreover, there are efforts made on a global scale to stop trading and selling counterfeit drugs and medications with the help of blockchain by facilitating even international collaboration. In this way, Governments, pharmaceutical businesses and clinics give access to drug fraud prevention data and thus facilitate the efforts to safeguard patients and drugs from fraud.

CONCLUSION

Source

The unique state of the arts technology known as Blockchain is transforming the pharmaceutical supply architecture by providing a high level of trust, shielding against fraud, enhancing regulatory compliance, and ensuring the safety of the patients. With a trustworthy blockchain, only genuine drugs are available at the consumers level which eliminates risks to health and other economic losses. The more it expands, the more importance it will get in addressing issues related to fake pharmaceuticals and especially enhancing safety in healthcare systems.