Walmart has recently announced the latest breakthrough in the application of blockchain technology. This is a collaboration with US and IBM Food and Drug Administration (FDA) for prescription drug blockade monitoring.
The pilot project was initiated in accordance with the Law on the Security of the Supply Chain of Medicines (DSCSA). It provides for the creation of an “electronic, interoperable system for identifying and tracking certain prescribed medicines” by 2023.
The FDA is interested in testing the utility of blockchain technology in managing such a system.
Drug monitoring program on blockchain
In February, the FDA announced the pilot program of the DSCSA project and invited interested companies to submit applications for participation. The purpose of the program is to improve the tracking and authentication of prescription drugs. Ensure that counterfeit or illegal drugs do not fit into the supply chain.
FDA Commissioner Scott Gottlieb said in February:
“By using new technologies, we believe we can improve the global security of our closed system and we can improve our ability to prevent the introduction of illegal products. We can also detect illegal products more quickly and allow stakeholders and the FDA to respond more quickly when such products are found. “
At the time, the FDA was opened for a variety of proposals involving several new technologies. In June, however, Merck, Walmart, KPMG and IBM announced that they would work with the FDA on a drug monitoring system on the blockchain.
Blockchain, an ideal solution for supply
The pilot is based on a restricted access blockchain that allows real-time monitoring of drugs.
“Supply chains for pharmaceuticals are complex, given the many entities involved. These include contracted manufacturers / packagers and 3P logistics service providers. In addition, joint collaborations and co-licensing partnerships between marketing authorization holders (MAHs) result in the need to share information and operate in a system of immutable registrations. Blockchain is an ideal technology for tracking prescription drug delivery because it provides a private, restricted access network and an immutable database. In other words, multiple parties can access the same data in their secure environments through network nodes, “
explained the spokesman for KPMG, the audit firm involved in the project.
This pilot is one of the 20 systems currently tested by the FDA, but it has the greatest potential for success. Blockchain technology is a functional solution for many industries, but is ideal for supply chains.