The Pharmaceutical industry has been struggling with the challenges related to ineffective supply chain management and drug counterfeiting. Another pain point is the high cost of bringing new drugs to the market, along with new quality standards for the welfare of mankind. Preventing counterfeiting, theft, and forgery while minimizing the cost and improving compliance is the utmost priority for biotech and pharmaceutical companies.
How Can Blockchain help in catering these Pain Points?
The blockchain is a distributed ledger technology which is anticipated to be a silver bullet that is disrupting the supply chain industry and is capable of handling most of the pain points of this industry. Apart from bringing enhanced visibility and control into a network for addressing counterfeiting and traceability issues, the use of Blockchain technology helps to automate various processes to bring cost-effectiveness.
In a given pharmaceutical ecosystem, it is really difficult for anyone within the pharmaceutical supply chain to track the authenticity of products from start to finish. With a Blockchain solution in place, all participants in a value chain including pharma companies, trading partners, manufacturers, and pharmacies patients would be able to trust each other.
While the traditional tracking system has resolved the pain point, it cannot ensure the security and integrity of data that is the serious cause of concern. This is why Blockchain solution can solve a lot of pain points of pharma industry keeping the cost-effectiveness in mind.
The Benefits of Blockchain Technology in the Pharmaceutical Industry
- Combats Drug Counterfeiting: It has been a pressing issue in terms of economic cost and patient safety. By integrating Blockchain into the pharma supply chain, the much-required transparency and trust is established within the network.
The system allows tracking of pharmaceutical supplies to all the participants involved in the supply chain. While the stakeholders gain the power to maximize their competence during drug distribution, patients can ensure their safety by verifying the drugs at every stage independently.
- Ensuring Data Integrity: The Blockchain technology allows you to keep digital records through its digital ledger. Every new transaction in a chain is authenticated by network consensus making the data immutable.
Transactions which are authenticated by consensus mechanism cannot be modified. This establishes a high-level of data-integrity, thereby making the data compliant, secure and available for all the participants.
- Improved Traceability: One of the major challenges is to keep track of all the transactions performed by a multitude of participants. The enormous amount of data generated poses a challenge, even when a few participants have automated systems for tracing and tracking the progression of drugs via the supply chain.
Blockchain ensures the integrity of the supply chain using a closed ledger system capable of facilitating trusted exchange between the stakeholders.
- Elevated Regulatory Compliance: The challenges around ensuring ‘trustless’ compliance still exist in the pharmaceutical industry despite the stringent regulatory policies. By incorporating Blockchain, the pharma supply chain pain points like the condition of drugs in transit, product counterfeiting, data security, etc. can be easily curbed.
The ‘Smart Contract’ element of Blockchain defines the agreements and terms that can help the healthcare regulators and stakeholders in ensuring better compliance.
Over to You
Blockchain technology has the potential to transform businesses by removing the inefficiencies and speeding up the transactions while enabling the innovative business models. In the pharmaceutical industry, Blockchain technology can do wonders by supporting various functions within and outside the supply chain. A revolution has already started, and we will soon see big players adopting Blockchain technology to ensure data integrity, efficient traceability, and better compliance.