RFID promises to revolutionise the pharmaceutical industry and for some of the industry’s leading players, such as Pfizer, it already has, writes Peter Schmallegger, segment marketing manager, RFID, NXP Semiconductors.
One of the biggest problems currently facing the pharmaceutical industry is drug counterfeiting. No longer just a problem for less-developed nations, with rising healthcare costs and the proliferation of the internet, fake drugs are all too easy to buy on the black market.
Counterfeit drugs can cause the patient harm, as they are often a concoction of harmful drugs and can potentially lead to death if ingested.
This is a widespread issue and the US-based Centre for Medicines in the Public Interest predicts that counterfeit drug sales will reach $75 billion globally in 2010, an increase of more than 90% from 2005.
Although precise data on counterfeit medicines is difficult to obtain, estimates range from around 1% of sales in developed countries to over 10% in developing countries. For this reason, all those involved in the drug industry are looking at ways to help solve this problem.
Technology is being heralded as one way to cut counterfeiting and the FDA is currently investigating how radio frequency identification (RFID) could be used to fight this growing problem, stating that it has the strongest potential for securing the supply chain compared to other solutions.
Can RFID defeat counterfeiting?
RFID offers an effective way to secure the pharmaceutical supply chain. If drugs are RFID-tagged at item level, they can be quickly and accurately tracked from the manufacturer all the way to the pharmacy.
As they enter and leave each link in the distribution chain – manufacturer, distributor, wholesaler and retailer – the drugs are scanned and authenticated. Any counterfeits can be immediately identified and removed from circulation before they do harm.
In addition to the safety and brand protection benefits of deterring counterfeiters, RFID can also improve operational efficiency through the pharmaceutical supply chain, helping to ensure a consistent supply of medicines, reduce overstocking and return of out-of-date drugs.
One of the biggest challenges facing the adoption of RFID is a standard fulfilling the specific requirements of the pharmaceutical supply chain.
However, initial efforts towards addressing this issue are being made through the work of EPCglobal, which is driving the definition and ratification of a new high frequency (HF) EPC standard. It combines an EPC Gen2 logical layer with a HF analogue front-end, leveraging the speed and command set of the Gen2 protocol in combination with the benchmark reliability of the HF interface.
The emergence of a single standard will enable a number of manufacturers to deliver cost-effective solutions and will eliminate interoperability problems, improve quality and ultimately drive mass adoption.
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 RFID into packaging
RFID is changing business operations, making them more streamlined. And this is already benefitting all aspects of the supply chain.
As the technology improves and becomes cheaper, item-level tagging will become a reality, allowing pharmaceutical companies to integrate RFID tags into product packaging.
At present, leading the field in the roll-out of RFID is Pfizer, which has taken the step of using HF-based RFID tags on Viagra® products, one of the world’s most replicated drugs of modern times, with the primary aim of preventing counterfeiting.
There is still work ahead for large-scale implementation of RFID in the pharmaceutical supply chain. However, the major building blocks of a cross-industry RFID solution are starting to become available. The building blocks are supportive legislation, international standards, a service architecture for e-pedigree and authentication, and for technology providers to implement solutions on a national and international level. The challenge is to combine the building blocks and establish a RFID infrastructure enabling a business-friendly approach that at the same time delivers patient safety and reduces healthcare costs.
Company profile
NXP Semiconductors
Website: www.nxp.com
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