The raise of counterfeit drugs poses a growing challenge toGovernments, as well as the Pharmaceutical Industry and the World Health Organization:it is not only an intellectual property problem but also a major health issue,jeopardizing life of millions people. Even if developed countries have mostly secured their supply, from thelaboratories to the pharmacies, the European Union estimated the shortfallcaused by counterfeit drugs to the European pharmaceutical industry at €10billions1. Developing countries are even more vulnerable to counterfeit drugswith very tangible impacts on individuals’ health: a research from theUniversity of Edinburgh estimates that 72 000 to 169 000 children are dyingfrom pneumonia each year due to fake or substandard antibiotics.
Meanwhile, theWorld Health Organization has modelized that, in the lower income countries, 1medical product on 10 is substandard or falsified, $30 billions worth2. The blockchain provides solutions to tackle the problem and improvesignificantly drug traceability, thanks to its very nature: decentralized,transparent, immutable and secured. The ability to create a private blockchainallows the industry to keep all data secured while increasing the level ofcontrol on every single parcel. As Anca PETRE, Healthcare Market Analyst at Humaniq – an organizationdeveloping banking to those who are excluded from the financial services, withthe blockchain – declared in her research: “The pharmaceutical companies decidewhich actors of the supply chain act as miners.
It could be manufacturers,distributors or retailers. Depending on the position on the supply chain, eachperson could have different rights: labs can register drugs whilst wholesalerscan only verify transactions.” With product traceability all along the supplychain, suppliers can be granted permission to source each drug back to itsorigin and prove its authenticity.
This unforgeable proof of fabrication could improve trust of populations andstakeholders in the entire industry, and