Can blockchain straighten out the pharmaceutical industry?
- The pharmaceutical industry can leverage blockchain’s capabilities to improve the supply chain
- Blockchain technology can improve the pharmaceutical’s manufacturing supply chain, drug safety, and inventory management
- The nature of using a ledger that can’t be manipulated is at the heart of the blockchain technology that makes it so useful for the pharmaceutical industry
Over the last 12 months, there has been plenty of buzz around the potential for blockchain technology to transform and secure supply chains across different industries. Especially since the emergence of the Covid-19 pandemic, the pharmaceutical industry also sees tremendous value in blockchain’s ability to securely exchange serialized data from manufacturers all the way to pharmacies.
Blockchain in simple terms is a distributed, decentralized, digitized ledger of transactions that records data in a way that prevents hacking and data altercation. Most people associate blockchain technology with the volatile nature of Bitcoin and other cryptocurrencies. The disruptive technology, however, has more to it.
Statistics suggest that worldwide spending on blockchain solutions is expected to grow from US$1.5 billion in 2018 to an estimated US$5.9 billion by 2023. Data shows that the financial sector accounts for over 60% of the market value of blockchain worldwide in 2018, but the technology has spread to nearly every industry from healthcare to agriculture.
Why pharma is moving towards blockchain
When cracks started appearing in the early days of the pandemic, after China switched off the lights and manufacturing largely ground to a halt, that is when the healthcare industry realized the urgency to improve the global supply chain. Supply chains across the globe started crumbling when border closures around the world took place, followed by reduced workforces, and an insatiable demand started growing internationally for goods and services that were suddenly not as available as usual.
Blockchain as a technology is crucial since it provides traceability in product lifecycles by relating data, propagating it, and distributing it securely throughout the organization. It is especially important among highly regulated industries such as pharmaceuticals. This industry requires transparency in its activities like clinical trials, supply chain control as it scales up, product validation, and quality assurance unit the final approved product is commercialized.
The primary use for blockchain within the pharma industry, according to KPMG analyst Arun Ghosh, is to serve as a “ledger of truth” for sharing complex information with regulators, pharmacy benefit managers, contract manufacturers, physicians, patients, academic researchers, and R&D collaborators, among others.
Hence, given the ability of the technology to enable secure and rapid transactions around the world, much of the efforts in the pharmaceutical industry to leverage its capabilities are focused on improving the supply chain. In fact, three of the biggest pharmaceutical conglomerates – Pfizer, Amgen, and Sanofi – are working side-by-side to find the most effective ways to utilize blockchain technology, from storing safe data to speeding up clinical trials and ultimately lowering drug development costs.
Beyond Covid-19 and vaccinations, the technology can be used to give more confidence in the privacy of information in clinical trials, which will open the door for people to trust in providing more information. This can also lead to shorter cycles for drug development and discovery. A BioMed Central report touches on how the reproducibility of clinical research studies has been an issue for quite some time and using blockchain technology can combine privacy with secure, decentralized tracking of all data.
- Does Meta’s AI strategy stand a chance against OpenAI’s advances?
- Japanese start-up builds a Gundam-like robot
- Mobile gaming is dominating consumer spending on games in 2023 compared to other platforms
- Fortifying Australian cyber-resilience through attack surface management
- What is Cyber Threat Intelligence, and why do I need it?