Blockchain improves drug supply chain security

In recent years, Western countries have tried to digitise dispensing drugs. In any case, a significant percentage of the prescriptions issued by private doctors are on paper. Furthermore, in countries like Spain, many public health doctors are still reluctant to use electronic prescriptions. 

This causes serious problems. There is a high percentage of counterfeit prescriptions that cannot be verified by pharmacists. In addition, there is a lack of security when it comes to the protection of patient data. Finally, there is the possibility that the pharmacist may dispense the wrong drug.

The application of Blockchain technology can avoid these problems. A Blockchain is a decentralised database, the data within which is validated by members of the network.  A network of users, collectively adhering to a set of pre-agreed rules, carries out this cryptographic validation. This introduces integrity, ensuring only one unique ‘correct’ version of events is stored in the database, which cannot be changed subsequently without the agreement of a majority of nodes.

In the United States of America, two dozen companies in the industry, including drug makers, distributors, retailers and delivery firms, created the blockchain-based MediLedger Network, which they have been testing in the verification of drug returns.

The MediLedger Project was created to meet the demands of the Drug Supply Chain Security Act (DSCSA). The network combines a “Lookup Directory” accessed through distributed ledger technology (DLT) with a permissioned messaging network that allows companies to securely request and respond to product identifier verification requests. Every transfer of a drug product on the MediLedger blockchain is securely verified as having authenticity and provenance prior to the transfer, which eliminates the need to perform verification at all.

Sponsored by the Innovative Medicines Initiative (IMI) and the European Federation of Pharmaceutical Industries and Associations (EFPIA) under the Horizon 2020 programme, PharmaLedger provides a widely trusted platform that supports the design and adoption of blockchain-enabled healthcare solutions. In the supply chain domain, PharmaLedger is focused on building a blockchain core that assists with traceability of finished products. Final products that have been through this system will be marked with a barcode that displays information on recalls, the product and interactions with other medications. 

Francesc Arcas Ruscalleda