Investigation and assessment of blockchain technology adoption in the pharmaceutical supply chain

Abstract

The global pharmaceutical industry has gone through several changes in the past decade related to the adoption of new technologies. The challenges that are faced by this industry mostly involve counterfeit drugs and operational issues. The involvement of cold chain for vaccines, medicine etc. is also impacting the secure logistics and transportation. Newly introduce blockchain technologies have capabilities to address these issues. The challenge which needs to address is the requirement of tracking the product authenticity from start production to consumption point to prevent further financial losses. The present study has proposed the investigation and assessment of blockchain for integration in the supply chain model of the pharmaceutical to securely record transactions between parties enhancing trust and transparency. The blockchain adaptation and implementation to address the supply chain challenges are discussed.

Introduction

The pharmaceutical supply chain is one of the area of application for technology-driven solutions. In the international pharmaceutical drug market fake, deficient, counterfeit, and grey medicines comprises for $200 billion per year [1]. Studies have uncovered a host of pharmaceutical products, medicinal drugs, agro products, health expedients, and biological devices which are counterfeiting in various countries, representing the entire drug supply chain is prone to this type of crimes [2]. At the same time, the healthcare industries are geared up for improvements in its supply chain management. This perspective aims to raise awareness and opportunities for blockchain use in health and pharmaceutical based supply chain [3]. India is one of the top growing pharmaceutical markets over the past years. The pharma and agro-based industry have saw the progress of 18.4% p.a. between 2005 and 2018. The generic drug based sector stretched at an even faster pace of 23% p.a. during a similar period and stood for 20% of world-wide ports by volume. Conversely, while India’s growth path looks capable on the surface, it is apparent that there is a substantial gap in using technology to manage the supply chain to avoid fake products [4]. Indian pharmaceutical companies are facing sole set of challenges that are generating significant pressure on them to transmute themselves and come with solutions based on latest technologies. India is in need of massive medical infrastructure and medical dugs to provide the health care facilities to the increasing population. The modern day technological solutions can provide a major support to revolutionize the medicine and health care sector of India as it provides secure, systematic, convenient, safe and quick solutions.

Blockchain works on the fundamental phenomenon of no repetition and symmetry of the object with decentralised, transparent, controlled and secure approach. The concept of blockchain in the pharmaceutical supply chain can be utilized to detect fake medicines with proper control over supply and demand of the drugs. This will enable pharmaceutical companies to have control over fake and unregistered medicines. The fake and unregistered medicines is big threat to human life as it doesn’t provide any medical recovery and can cause many side-effects leading to severe health damage or even death in critical conditions. The global drug companies requires secured and controlled medical logistics and supply chain to avoid causalities to the life of the people and this is where blockchain technology can play a crucial role by using controlled and secure systems for distributing the lifesaving drugs. The implementation of blockchain includes blended use of sensors and connected business supply chain environment for clinical communities to provide quick, safe and secure solutions. Many cloud-based platforms offer live data sharing for drug traceability and security of the supply chain. Enabling patients to share their information and establishing direct access to patients[5].This kind of information sharing allows different experts to provide their opinion and the best suitable drug for the disease can be determined which would be very helpful for the patient and medicine industry. The summary of select studies reviewed for blockchain technology is presented in Table 1.