Blockchain technology in the pharmaceutical industry
By Monica Gulati
Many technologies have been introduced by digital transformation to various industries that support increasing the performance, transparency and security levels of businesses. Among these is the invention of blockchain technology. It was first launched more than ten years ago and today it is used for more than just cryptocurrency platforms. It has developed into something more comprehensive, with the ability to change the rules and bring about new types of collaboration and to bring in efficiencies that lead to better work output.
The pharmaceutical industry is one of many industries that have digitally transformed with blockchain technology. Few of the major challenges facing the pharmaceutical industry are lack of transparency, difficulty in tracking goods, sale of counterfeit drugs and distribution of expired and banned drugs. Several of these problems have been solved using blockchain technology.
Blockchain and COVID-19
When it comes to the sustainability of supply chains, Covid-19 has highlighted some of the flaws and accelerated the adoption of technologies such as blockchain. In the coming years, it is expected that technology use will continue to accelerate more.
According to Statista, global investment in blockchain solutions is expected to reach $5.9 billion by 2023. Deloitte conducted a study on applying this breakthrough, and 83% of respondents claimed that their companies would lose their competitive advantage if they did not implement blockchain.
Impacts of blockchain technology on the pharmaceutical industry
The financial industry has changed because of blockchain’s innovation. Especially in this context, it is fascinating to see how technological advances and their implications are used in other sectors. However, blockchain is gaining a lot of opportunity and traction in the pharmaceutical industry, given the significant investments that these companies have made in development, research and manufacturing.
Blockchain technology, which enables user authentication, proof of work and smart contracts, can change how businesses manage and store data by ensuring security and transparency for all stakeholders involved. However, drug development in the pharmaceutical sector involves following procedures and protocols, such as the requirement to move data from one department to another, the necessity to transfer drugs to wholesale distributors before they are delivered to patients, and the need to protect the integrity of patient data. Furthermore, the need to limit access to such data is also one of the procedures and protocols that must be strictly followed.
In addition to that, patient safety, product quality and data integrity are key concerns throughout the drug development and distribution process, placing the use of verified, transparent and secured technology at the forefront of these processes. This obviously presents a golden opportunity for blockchain technologies to improve and streamline existing operations.
Securing the pharmaceutical supply chain using the blockchain
When considering applications of blockchain technology in the pharmaceutical sector, the pharmaceutical supply chain serves as a compelling example: drugs are created and manufactured at manufacturing facilities, then often transferred to wholesale distributors before being delivered to patients. By using the blockchain to assist and manage the drug development process, blockchain technology provides a chance to verify the reliability of the drug supply chain and improve the development of drugs. While public health is seriously threatened by counterfeit and substandard medicines entering the legal supply chain, blockchain technology can improve the systems currently in place by using distributed ledgers, smart contracts, transfer of assets and proof of work.
It is now clear that blockchain technology has the power to change how businesses interact with each other. It has many potential applications that are not specific to any business, and it will take years to determine the impact this technology will have on the planet, as we are only just beginning to recognize its potential consequences.
Advantages of blockchain in the pharmaceutical industry
The overall benefits of blockchain technology implementations are enormous, ranging from complete regulatory compliance across the sector to data security throughout the supply chain. But building a genuinely connected, multinational business is not easy, especially for pharmaceutical firms. A company interested in blockchain must carefully consider how it will educate itself, evaluate the technology and determine whether the system will be a valuable asset to its products.
New approaches to blockchain technology are beginning to be explored in the pharmaceutical sector, such as cloud-based networks that allow extensive visibility and collaboration between all participants in the supply chain.
Other solutions use the huge amounts of data in the system to connect cloud-based networks with decision support software. Both strategies will ultimately raise the quality of the sector by improving product durability, reducing inventory and increasing profit margins. Many pharmaceutical companies have already developed successful techniques to stay ahead of the competition.
Paving the way for the future!
Blockchain is a futuristic technology. With the development of bitcoin, the blockchain approach has already dominated the financial industry with its decentralized database structure, unparalleled data security and integrity standards, and tamper-proof data records.
Blockchain will change how the sector works and eventually be integrated into every significant pharmaceutical activity. With a lot of support, blockchain technology is increasingly integrated into the market. We know that the pharmaceutical industry is moving very quickly, and blockchain will certainly be crucial to the well-being of generations to come.
The author is Executive Dean and Registrar, School of Pharmaceutical Sciences, Lovely Faculty of Applied Medical Sciences, Lovely Professional University
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