Blockchain technology is emerging as a promising solution to the ongoing issue of counterfeit medicines in the pharmaceutical industry. Goldstein Market Intelligence predicts that counterfeit medicines will have a significant impact, estimated at $5.3 billion this year. Despite these challenges, industry experts remain hopeful about blockchain's potential to address this problem.

Is Blockchain the Answer to Combat Fake Drugs?

In a recent interview with Sunday PUNCH, Oluseyi Akindeinde, CEO of Hyperspace Technologies, discussed how blockchain could protect the pharmaceutical sector. Akindeinde highlighted blockchain’s capacity to serialize pharmaceutical products and assign verifiable security features, which could greatly reduce the spread of counterfeit medicines.

To achieve this, Akindeinde suggested using encrypted non-fungible token (NFT) tags on pharmaceutical products. These tags would create unique identities and add a layer of security. By encrypting the NFTs, only authorized individuals with the correct code could access information such as ownership details and other attached data, ensuring the integrity of digital assets on the blockchain.

The impact of counterfeit medicines is severe, extending far beyond financial losses. According to the United Nations, substandard drugs cause about 500,000 deaths annually in sub-Saharan Africa alone, with 267,000 of these deaths related to counterfeit antimalarial drugs, and substandard antibiotics for severe pneumonia causing 169,271 deaths.

The National Agency for Food and Drug Administration and Control recently combated the counterfeit medicine trade by destroying over N500 million worth of fake and expired goods in Abuja. The destroyed drugs included psychoactive substances, antibiotics, anti-hypertensives, herbal remedies, and other drugs seized from unauthorized vendors.

Smart Contracts: A Remedy for Drug Counterfeiting

Akindeinde further explained that blockchain technology, through the use of smart contracts, provides an unchangeable solution. Each pharmaceutical product receives a unique identification tag attached to its packaging within a smart contract, making manipulation nearly impossible.

The implications of counterfeit drugs extend beyond immediate health risks. Legitimate pharmaceutical companies suffer reputational damage, and trust in the entire healthcare system diminishes due to the spread of fake drugs. Blockchain technology, with its built-in authentication and transparency, can help restore trust and integrity.

Adewale Kayode, Director and Team Lead at Sirfitech, supported this view, noting that blockchain technology could offer authentication and transparency throughout the entire pharmaceutical value chain. From raw materials to manufacturing and distribution, blockchain ensures the verifiability and traceability of pharmaceutical products, increasing confidence among consumers and stakeholders.

As the counterfeit medicine industry evolves, the adoption of blockchain technology offers a beacon of hope. Despite challenges like regulatory frameworks and the need for industry collaboration, blockchain's potential to combat counterfeit medicines and save lives is significant. The pharmaceutical sector is poised to harness this transformative technology, paving the way for a safer and more reliable future.