Panacea for a sick trade
The fight against counterfeit drugs is ongoing and extensive, but most of the efforts have had limited success. The problem has persisted regardless, and is escalating. With the maturing of RFID, there may be a new solution.
Fraudulent drugs in the pharmaceutical supply chain are increasing via unethical individuals and trafficking rings that are prepared to risk human lives and health for their own financial gain. The counterfeiter has scant regard for consumers, companies or governments, resulting in potentially devastating socio-economic consequences.
Four principal countermeasures exist to reduce illicit trade:
• Legal actions
• Technology
• Covert enforcement, infiltration and private investigation
• Consumer information and education
Though an effective strategy to reduce illicit trade in counterfeit goods often constitutes a mix of all four countermeasures, for consumers, governments and companies it is technology that has the most promise. In order to successfully achieve a usable and useful solution, advanced solutions need to be developed that address the many shortcomings and unsolved issues of currently available anti-counterfeiting technologies and products.
These systems are fragmented, compartmentalised and do not optimise the use of technology and infrastructure. As a result, they are unable to achieve 100 per cent identification and authentication of products in real time, and cannot be seamlessly deployed within existing business environments and enterprise software systems. They have inadequate security features, are too costly, lack quality and tamper-proof features, are unable to be covertly and successfully integrated into existing production processes and packaging, and have major difficulty operating in challenging environments.
RFID is seen as a technology that may accelerate success in the fight against the trade of illicit goods. The FDA believes that the technology is fundamental to the future integrity of the pharmaceutical supply chain, regarding it as a: ‘cornerstone technology in the fight against counterfeit drugs because of its ability to track, trace and authenticate packages of drugs’. It is uniquely placed to provide an immediately accessible electronic pedigree for every product, ensuring that a real-time detailed audit record is generated throughout the entire life cycle of a drug, from manufacture to distribution, storage, transport, point of sale and dispensing.
Room for improvement
Although RFID technology addresses many of the limitations of current solutions, refinements to the technology are still required if it is to fulfil its potential. In particular, there are concerns regarding the apparent ease with which an RFID tag can be destroyed through methods such as scratching, microwaving or magnetising, making it unreadable. There are also concerns over the possibility of taking a working tag from a genuine product and placing it on an illicit product, thus giving the fake goods an apparent genuine record. Both these concerns are being addressed through various tamper-proof and covert packaging methods that are expected to deliver a robust solution. However, the ultimate product is not final yet.
Another consideration is cost-effectiveness where current prices are still prohibitive. This is probably only an interim concern, since prices will decrease as volumes in the market increase. Moreover, costs also need to be considered in the context of company, community and government benefits rather than as a standalone variable.
Preventing counterfeit goods from reaching the marketplace results in immediate and tangible benefits for the health and safety of consumers. The revenue performance of companies are enhanced and brand reputation protected. For governments, unemployment is minimised, tax revenue maximised, external investment maintained, and the environment secured since the counterfeiters are prevented from financing other illegal activities.
One debate that needs to be settled concerns standards. Is it better to implement a standardised solution, thus increasing its global utility, while making it easier for the counterfeiters; or is it preferable to go with a proprietary route where companies will implement non-standard solutions, making it very difficult for counterfeiters but reducing the seamless, industry-wide utility of the product?
Future progress
RFID can provide a secure, comprehensive, usable, cost-effective and convenient product authentication mechanism to reduce trade with illicit products. As with most innovations in the pharmaceutical industry, this will require further effort and resources where each incremental improvement generates cumulative progress, resulting in the development of a robust final anti-counterfeiting solution.
Company profile
Spacecode SA is a specialist RFID company providing complete end-to-end solutions in the healthcare and pharmaceutical industries. It has been developing RFID technology since 1989. For more information, visit:
www.spacecode-rfid.com
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