India Considers Using Blockchain As a Crackdown on Fake Medicinal Drugs
The latest report coming from India shows that the country is currently testing a blockchain proof-of-concept (PoC) solution as a crackdown on a duplicate drug supply within the country. As per the country’s local publication Factor Daily, India’s top policy-making body - The National Institute of Transforming India (NITI Aayog) - aims to complete this project by the year-end with a roll-out of the same in early 2019.
A 2017 report by World Health Organization (WHO) shows that nearly 20% of the medicines used in the country are found to be below standard. The report also mentions that 35% of the counterfeit drugs sold globally comes from India.
An unwon official of the NITI Aayog told daily factor: “We are all taking those [counterfeit] medicines and I am sure people are dying. One way to reduce that is put the entire supply chain on the blockchain.”
Under the new solution, each drug will be allotted a unique identification code which can be tracked at any given point in time within the entire supply chain using the Blockchain technology. The unique ID assures that each stage of the supply line the medicine can be tracked immutably. Consumers can also cross-verify it by scanning the QR code or barcode on their smartphones while getting details like the source of manufacturing and complete history of the supply chain process.
Anytime the medicine is being sold, the unique ID “gets irrevocably audited on the blockchain” to make sure that it is not duplicated with other fraudulent and counterfeit drugs. The NITI Aayog said that it has received the support from India’s $28 billion pharmaceutical industry.
Secretary general of industry lobby Indian Pharmaceutical Alliance, DG Shah said: “Fake drugs are a concern and if blockchain can help the industry get rid of the problem we are up for it. If the government is willing to consider it that is an additional cost and compensate it, the industry will have no objection.”
Mr. Shah also pointed at the short-term concerns of implementing this decentralized technology saying that additional barcoding of drugs will result in the production loss of 25% at least.
Another official from the NITI Aayog said that the agency has already finalized its technology partner for the PoC trial and is currently looking for a partner to implement and deploy this technology.
The NITI Aayog is also said to be working with different partners for using the revolutionary blockchain technology across different sectors of healthcare, education and agriculture.