Big Pharma Forced to Look to Blockchain Technology for Guidance
With tightening federal expectations and increased regulations, pharmaceutical supply companies are turning to an unlikely solution: innovative blockchain technology.
Tightening Regulations In recent years, pharmaceutical supply companies have faced increasing federal regulations to help keep drugs out of the hands of criminals and addicts. Blockchain can help tighten up the supply chain by efficiently tracking the shipments and ownership of the drugs as they move around the supply line. Blockchain technology helps this process, as it can be used to keep a careful and unchangeable record of events.
Initial Testing The companies Merck & Co., as well as AmerisourceBergen Corp., rolled out a cutting edge project that utilized Blockchain technology to track the shipment and ownership of their drugs, which allows the companies to increase their profitability and perform more complicated deals. Blockchain also allows them to verify drugs that have been returned by hospitals quickly. With blockchain's detailed and accurate record of the drug's ownership history, the companies can resell some of these returned drugs.
Pharmaceutical Blockchain Utilization Blockchain seems like a natural fit for the pharmaceutical supply industry, as it is such an accurate, quick, and reliable way to keep records or essential information. Its usage in cryptocurrency technology widely popularized it, but blockchain technology has broad applications to industries outside of technology and finance. If used to its full expanse, blockchain technology could have many applications in the pharmaceutical industries, including the tracking of their product on the supply chain, verifying accurate serial numbers, and tracking drug and product returns.
The Right Stomping Ground This industry is yet another place for blockchain to gain usage outside of cryptocurrency. The pharmaceutical industry currently has no master database to track information about products as they are moved between locations and as ownership changes hands. Individual companies keep records, but these are often not shared with other companies. This lack of free-flowing information slows down the supply chain, so blockchain is an ideal solution to this industry-wide problem.
The Future of Blockchain in Pharmaceutical Supply While blockchain could have a stable future in the pharmaceutical supply industry, there are still some significant hurdles like the need for sensitive data to be kept secure. This would involve increased encryption and more layers of security. In the future, blockchain might revolutionize unique and previously unexpected industries like pharmaceutical supply. The opportunities with this cutting edge technology are limitless. --Adam Jiwan, CEO and Co-founder of Spring Labs