Role of Blockchain Technology in Securing Pharmaceutical Supply Chains

Blockchain technology is a revolutionary innovation that has the potential to transform various industries, including the pharmaceutical sector. In this article, we will explore how blockchain can help secure the supply chains of pharmaceutical products, especially in Africa and Nigeria, where counterfeit and substandard drugs pose a serious threat to public health and safety.

What is blockchain technology?

Blockchain technology is a system of distributed ledger that records transactions and data in a secure, transparent and immutable way. Each transaction or data entry is verified by a network of nodes (computers) and stored in a block linked to the previous block, forming a chain. The blockchain network is decentralized, meaning that no single entity has control over it or can tamper with it. This makes blockchain technology ideal for applications that require trust, security and traceability.

How can blockchain technology secure pharmaceutical supply chains?

Pharmaceutical supply chains are complex and involve multiple stakeholders, such as manufacturers, distributors, wholesalers, retailers and consumers. Each stakeholder has its own information system and processes, which may not be compatible or interoperable with others. This creates gaps and inefficiencies in the supply chain and opportunities for fraud and corruption.

Blockchain technology can address these challenges by providing a shared and trusted platform for all stakeholders to exchange information and track the movement of pharmaceutical products from the source to the destination. Blockchain technology can also enable smart contracts, which are self-executing agreements that can automate transactions and enforce compliance with predefined rules and conditions.

Some of the benefits of blockchain technology for pharmaceutical supply chains are:

• Enhanced transparency and accountability: Blockchain technology can provide real-time visibility into the origin, quality, quantity and location of pharmaceutical products, as well as the transactions and activities of all stakeholders. This can help prevent counterfeit and substandard drugs from entering the market and detect and deter any unauthorized or fraudulent activities.
• Improved efficiency and cost reduction: Blockchain technology can streamline and optimize the processes and workflows of pharmaceutical supply chains, reducing errors, delays and waste. Blockchain technology can also reduce the need for intermediaries and third-party verification, lowering operational costs and risks.
• Increased trust and collaboration: Blockchain technology can foster trust and collaboration among all stakeholders in the pharmaceutical supply chain, as they can share data and information in a secure and reliable way. Blockchain technology can also facilitate cross-border trade and regulatory compliance, as it can provide a common framework and standard for data exchange and verification.

What are some examples of blockchain applications in pharmaceutical supply chains?

There are several initiatives and projects that are exploring the use of blockchain technology in pharmaceutical supply chains, especially in Africa and Nigeria. Some examples are:

• MediLedger: MediLedger is a consortium of pharmaceutical companies that aims to create an open and decentralized network for tracking and verifying prescription drugs. MediLedger uses blockchain technology to create a digital product identifier (DPI) for each drug unit, which can be scanned and verified by all stakeholders along the supply chain. MediLedger also supports the implementation of the Drug Supply Chain Security Act (DSCSA), which is a US law that requires drug manufacturers to serialize their products and track their distribution.
• RxAll: RxAll is a Nigerian start-up that uses blockchain technology to combat counterfeit drugs in Africa. RxAll has developed a handheld device called RxScanner, which can scan drugs and verify their authenticity using artificial intelligence (AI) and blockchain. RxAll also has a mobile app that connects consumers with verified pharmacies and drug sellers, as well as a blockchain platform that records the data and transactions of all stakeholders.
• PharmaTrust: PharmaTrust is a UK-based company that provides a blockchain platform for securing pharmaceutical supply chains globally. PharmaTrust uses blockchain technology to create digital passports for each drug unit, which contain information such as batch number, expiry date, manufacturer details and shipping history. PharmaTrust also uses smart contracts to automate payments, rewards recalls and audits.

Conclusion

Blockchain technology is a powerful tool that can enhance the security, efficiency and trust of pharmaceutical supply chains. By using blockchain technology, stakeholders can have access to accurate and reliable data on the origin, quality and movement of pharmaceutical products, as well as prevent counterfeit and substandard drugs from harming consumers. Blockchain technology can also improve collaboration and coordination among stakeholders, as well as facilitate cross-border trade and regulatory compliance. Blockchain technology is not a silver bullet, however, and it requires careful design, implementation and governance to ensure its effectiveness and sustainability.