The issue of counterfeit medicines in the pharmaceutical sector has been a persistent problem, with an estimated impact of $5.3 billion this year according to Goldstein Market Intelligence. However, there is hope for a solution in the form of blockchain technology. Industry experts are optimistic about its potential to address this pressing concern.
Can Blockchain Technology Combat Counterfeit Medicines?
In a recent interview with Sunday PUNCH, Oluseyi Akindeinde, CEO of Hyperspace Technologies, highlighted the potential of blockchain in safeguarding the pharmaceutical sector. Akindeinde emphasized the ability of blockchain to serialize pharmaceutical products and assign verifiable security features, which could significantly hinder the circulation of counterfeit medicines.
To achieve this, Akindeinde proposed integrating encrypted non-fungible token (NFT) tags into pharmaceutical products. These tags create unique identities and offer an additional layer of security. By encrypting the NFTs, only authorized individuals with the correct code can access information such as ownership details and any attached data, ensuring the integrity of digital assets on the blockchain.
The impact of counterfeit medicines extends far beyond financial losses. According to the United Nations, substandard drugs result in a staggering 500,000 deaths annually in sub-Saharan Africa alone. Shockingly, within that figure, 267,000 deaths are linked to counterfeit antimalarial drugs, while substandard antibiotics for severe pneumonia contribute to 169,271 deaths.
The National Agency for Food and Drug Administration and Control recently took action against the counterfeit medicine trade, destroying over N500 million worth of fake and expired goods in Abuja. The regulator noted that the destroyed drugs included psychoactive and controlled substances, antibiotics, anti-hypertensives, herbal remedies, and drugs confiscated from unauthorized vendors.
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Smart Contracts: A Powerful Tool Against Drug Counterfeiting
Akindeinde further explained that blockchain technology offers an immutable solution through the use of smart contracts. Smart contracts are unchangeable lines of code deployed on the chain. Each pharmaceutical product receives a unique identification tag affixed to its packaging within a smart contract, making manipulation virtually impossible.
The implications of counterfeit drugs extend beyond the immediate health risks. Legitimate pharmaceutical companies suffer reputational damage, and the entire healthcare system grapples with diminished trust due to the proliferation of fake drugs. Blockchain technology, with its inherent authentication and transparency, has the potential to restore trust and integrity.
Adewale Kayode, Director and Team Lead at Sirfitech, echoed the sentiment, stating that the technology could provide authentication and transparency across the entire pharmaceutical value chain. From raw materials to manufacturing and distribution, blockchain technology can ensure the verifiability and traceability of pharmaceutical products, instilling confidence in consumers and stakeholders alike.
As the counterfeit medicine industry continues to evolve, the adoption of blockchain technology offers a glimmer of hope. While challenges such as regulatory frameworks and industry collaboration remain, the potential of blockchain to combat counterfeit medicines and protect lives is undeniable. The pharmaceutical sector stands poised to leverage this transformative technology, forging a path towards a safer and more reliable future.
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Revolutionizing Healthcare: How Nigeria is Using Blockchain to Combat Fake Drugs
The global pharmaceutical industry is valued at $1.25 trillion, with sub-Saharan Africa alone spending over $14 billion on healthcare. But with this large market comes a major problem – fake drugs. According to the World Health Organization (WHO), an estimated 10% to 30% of medicines sold in Africa are fake or substandard. This not only puts patients at risk but also undermines the credibility of the healthcare industry and hinders its potential for growth.
In recent years, there has been a push towards using new technology to combat this issue, and one of the most promising solutions is blockchain. This revolutionary technology is being embraced by Nigeria to transform its healthcare sector and ensure the safety and efficacy of drugs for its citizens.
What is Blockchain and How Can it Help?
Blockchain technology is a decentralized digital ledger that records and stores data in a secure and immutable manner. It allows for the creation of a transparent and tamper-proof record of transactions. This makes it an ideal solution for keeping track of the supply chain of pharmaceuticals, as every step of a medicine’s journey – from production to distribution – can be recorded and verified on the blockchain.
This level of transparency and incorruptibility is invaluable in the fight against fake drugs. With traditional methods of supply chain management, it is often difficult to track the origins and authenticity of medicines, making it easier for counterfeit drugs to enter the market. Blockchain technology eliminates this problem by creating an unalterable record of a medicine’s journey, providing an added layer of security and accountability.
Nigeria’s Blockchain Initiative
Recognizing the potential of blockchain technology to combat fake drugs, the National Agency for Food and Drugs Administration and Control (NAFDAC) in Nigeria launched a blockchain-based system in November 2020, known as “NAFDAC Asset and Authentication System” (NAFDAC-SUGAM). The system is built on the TracTrace blockchain platform, and it allows for the tracking of medicines from production to distribution to consumers in real-time.
Using NAFDAC-SUGAM, every drug that enters the Nigerian market is assigned a unique identification number which is recorded on the blockchain. This number can be scanned by healthcare professionals and consumers to access the drug’s complete history, including information on the manufacturer, batch number, expiry date, and journey through the supply chain. This not only ensures that drugs are genuine but also provides vital information about their safety and quality.
Benefits of Blockchain in the Healthcare Industry
The use of blockchain technology in healthcare has numerous benefits, not just in the fight against fake drugs, but in the industry as a whole. Some of the key advantages include:
1. Increased Supply Chain Efficiency: By creating an immutable record of a drug’s journey, blockchain technology can improve supply chain efficiency and reduce the likelihood of counterfeit drugs entering the market.
2. Improved Transparency: With blockchain, all stakeholders have access to the same information, creating a transparent and trusted system that instills confidence in the healthcare industry.
3. Enhanced Patient Safety: By being able to verify the authenticity and safety of drugs, patients are at a lower risk of harmful counterfeit medicines and can trust the medications they are receiving.
4. Cost Savings: The use of blockchain can reduce the costs associated with managing and maintaining supply chains, allowing for more affordable medicines for patients.
5. Real-Time Tracking: Blockchain allows for real-time tracking of medicines, making it easier to pinpoint and address any issues that may arise in the supply chain.
Case Study: Nigeria’s Success with Blockchain in Healthcare
The implementation of blockchain technology has already shown promising results in Nigeria’s fight against fake drugs. Before the rollout of NAFDAC-SUGAM, fake drugs accounted for approximately 7% of medicines in the Nigerian market. However, within the first month of implementing the system, this number dropped to 1%. This successful pilot has led to plans for nationwide expansion, with the goal of eradicating fake drugs from the Nigerian market entirely.
First-Hand Experience: A Pharmacist’s Perspective
Dr. Habeeb Adogbo, a pharmacist in Nigeria, has had first-hand experience with the NAFDAC-SUGAM system and its impact on the country’s healthcare sector. He shares, “The use of blockchain technology has greatly improved our ability to ensure the safety and efficacy of medicines for our patients. We no longer have to worry about counterfeit drugs entering our pharmacy, as we can easily verify the authenticity of each drug through the blockchain system. This has not only increased patient safety but also improved trust in our pharmacy.”
Practical Tips for Implementing Blockchain in Healthcare
For countries or organizations looking to implement blockchain technology in their healthcare systems, there are a few key considerations to keep in mind:
1. Collaborative Efforts: Blockchain technology is most effective when used collaboratively by all stakeholders in the healthcare industry, including pharmaceutical companies, distributors, healthcare providers, and regulatory agencies.
2. Education and Training: Proper education and training on how to use blockchain technology is essential for its successful implementation in the healthcare sector.
3. Secure and Reliable Infrastructure: The use of blockchain requires a reliable and secure infrastructure to ensure the data recorded is accurate and cannot be tampered with.
In Conclusion
The implementation of blockchain technology in Nigeria’s healthcare sector is a significant step towards combating fake drugs and improving patient safety. Its success has led to its adoption in other parts of Africa, including Ghana and Kenya, paving the way for a more secure and transparent healthcare industry on the continent. With continued efforts and collaboration, blockchain has the potential to revolutionize healthcare and ensure the safe and effective delivery of medicines to patients.
