The global pharmaceutical manufacturing market was worth $405 billion in 2020 and is estimated to continue to grow at a CAGR of 11.34% through 2028. New technologies, drug development, and the rise of IoT (Internet of things) caused a radical transformation of the supply chain of the pharmaceutical industry, today more extensive and complex than ever.
To be sure, such a long-range supply chain offers many benefits, including the ability to support the largest vaccination campaigns in history during the height of the Covid-19 pandemic.
At the same time, this growing supply network is always more prone to problems such as fraud, merchandise diversion, adulteration, and counterfeiting. Here’s how serialization solutions could help keep this problem at bay, protect brand reputation, and safeguard the health of consumers.
The problem of counterfeiting in the pharmaceutical industry: an overview
Recent industry estimates indicate that the counterfeit pharmaceutical sector accounts for between US$163 and US$217 billion in sales per year. While the global trade in counterfeit and copied products accounts for more than 3% of international trade, the counterfeit pharmaceutical sector is a particularly lucrative subcategory.
While the threat of the counterfeit trade has been growing in recent years, there are some recent developments that have fueled its growth, including:
- The rise of e-commerce and online shopping channels: While developing countries have always been a breeding ground for manufacturers of counterfeit pharmaceuticals, today these companies can reach consumers around the world through of online channels. According to recent statistics, it is estimated that almost 50% of medicines sold online are counterfeit.
- The Covid-19 Pandemic: The current pandemic has led to a deluge of vaccines, and dozens of pharmaceutical manufacturers have scrambled to find a solution to the Covid-19 virus. While the rapid market launch of new vaccines helped save millions of lives, it also spurred various vaccine frauds and boosted the black market for counterfeit medicines.
Fortunately, new high-tech solutions that take advantage of emerging technologies can be successfully used to protect manufacturers and consumers alike. Let’s discuss pharmaceutical serialization solutions and cutting-edge technologies used to augment track and trace systems.
Pharmaceutical serialization: the high-tech solution to fight counterfeit drugs
Product serialization refers to those solutions that can help manufacturers and consumers track each individual product. The core of every serialization solution is the drive serial number. This string of numbers contains important information about the product’s manufacturing location, supply chain, travel, security, certifications, and expiration date.
However, as the supply chain has expanded, pharmaceuticals have become more difficult to trace, leading to a growing counterfeiting problem. Fortunately, today emerging technologies such as the Internet of Things, Blockchain and AI support intelligent serialization systems, especially when implemented in smart packaging solutions designed specifically for the pharmaceutical industry.
Some of the smart packaging solutions used to improve serialization and tracking at the unit level include:
- Blockchain: Blockchain is a decentralized technology that supports secure, permanent, and tamper-proof transactions. When combined with proprietary smart contracts, custom blockchain solutions allow manufacturing companies to record each product’s journey through the supply chain.
- Physical-Digital Seals – These seals are used to link a product to its digital twin and provide tamper-evident packaging.
- NFC and RFID tags: These are two-party wireless technologies that enable the secure exchange of data between product packaging and a smart device. NFC and RFID tags are tamper-proof and nearly impossible to tamper with.
Serializing pharmaceuticals with Blockchain technologies and implementing end-to-end product authentication solutions can help protect manufacturers from brand reputation damage and patients from public safety risks.
Because of this, it has become essential for pharmaceutical manufacturers to partner with product authentication experts like Authena and invest in custom serialization solutions.
The benefits of end-to-end pharmaceutical traceability solutions
The counterfeit problem that is currently spreading like wildfire in the pharmaceutical industry is more complex than consumers can imagine. In fact, most fake drug manufacturers produce pharmaceuticals in small facilities, which are difficult to identify and shut down. The two main problems affecting the industry are:
- Genuine diverted goods moving from developing countries to more expensive markets
- Merchandise accessing unexpected distribution channels
- Counterfeit medicines made by scammers and disguised as authentic products
- Authentic containers filled with unauthorized active ingredients and false labels
- No end-to-end visibility for manufacturers, patients, and healthcare professionals alike
- Reduced availability of product data and knowledge of your journey through the supply chain
The immediate consequence of counterfeit pharmaceuticals and counterfeit drugs is significant monetary loss for manufacturers.
But there are other consequences that can be just as serious. For example, counterfeit products are not regulated by local authorities and can pose a significant health risk to both patients and consumers. In fact, counterfeit medicines, like fake antibiotics, can contain the wrong ingredients, or low doses of the right ones.
What’s more, even if fake drugs don’t cause mass poisoning, they can still damage the manufacturer’s reputation and lead to loss of consumer confidence.
Some of the benefits of investing in an end-to-end pharmaceutical serialization strategy built for your specific brand include:
- Detection and protection against fraudulent refilling and dilution
- The use of IoT devices to streamline the identification and registration of items throughout the supply chain.
- NFC and RFID tags can be activated via any smartphone so patients can feel more in control of their treatment plan.
- Anti-peel labels designed to prevent diversion and tampering
- Fully customized smart packaging solutions for your brand
- Simplified communication and accessibility of data and information.
- Increased customer data and insights, including product opening detection and transfer of ownership
- Customer support services, such as instant access to information brochures, product recall alerts, and one-click reporting options to report potentially counterfeit products
Depending on the type of industry you operate in and the type of market your product is targeting, you can use a serialization solution to offer greater supply chain transparency to patients or immediate access to data to professionals. sanitary.
Tailor-made serialization solutions: towards a safer pharmaceutical industry
The pharmaceutical industry continues to grow at a breakneck pace. And without a doubt, a secure, efficient and far-reaching supply chain is one of the most powerful tools countries have to protect citizens and improve their quality of life.
However, complex and layered supply networks carry greater risks in any industry, but can be especially damaging in the case of pharmaceuticals. Now that the industry is growing at an unprecedented rate, investing in a custom serialization solution for your products can help you maintain your organization’s competitive advantage, protect your consumers, and improve your supply chain.
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Categories: Technology
Source: vtt.edu.vn