Blockchain technology emerges as a possible solid solution to the persistent problem of counterfeit medicines in the pharmaceutical sector. According to Goldstein Market Intelligence's forecast, the estimated impact of counterfeit medicines amounts to a staggering $5.3 billion this year. Despite these challenges, industry experts express optimism about the transformative impact of blockchain technology in addressing this pressing concern.
Is Blockchain the solution to counteract fake medicines?
In a recent interview with Sunday PUNCH, Oluseyi Akindeinde, CEO of Hyperspace Technologies, highlighted the potential of blockchain in safeguard the pharmaceutical sector. Akindeinde emphasized that blockchain's ability to serialize pharmaceutical products and assign verifiable security features 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 NFTs, only authorized people with the correct code can access information such as ownership details and attachment data, ensuring the integrity of the digital assets on the blockchain.
The impact of counterfeit medicines goes far beyond financial losses. According to the United Nations, poor-quality medicines cause a staggering 500,000 deaths a year in sub-Saharan Africa alone. Surprisingly, 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 cracked down on the trade in counterfeit medicines, destroying counterfeit and expired products worth over N500 million in Abuja. The regulator noted that the destroyed drugs included psychoactive and controlled substances, antibiotics, antihypertensives, herbal remedies and medications confiscated from unauthorized sellers.
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Smart contracts: antidote to counterfeit medicines
Akindeinde further explained that block chain technology offers an immutable solution through the use of smart contracts. Smart contracts are immutable lines of code implemented on-chain. Each pharmaceutical product receives a unique identification label attached to its packaging within a smart contract, making tampering virtually impossible.
The implications of counterfeit medicines go beyond immediate health risks. Legitimate pharmaceutical companies suffer reputational damage and the entire healthcare system faces a loss of trust due to the proliferation of fake medicines. Blockchain technology, with its inherent authentication and transparency, has the potential to restore trust and integrity.
This view was echoed by Adewale Kayode, director and team leader at Sirfitech, who said the technology could provide authentication and transparency across the pharmaceutical value chain. From raw materials to manufacturing and distribution, blockchain technology can ensure the verifiability and traceability of pharmaceutical products, instilling confidence in both consumers and stakeholders.
As the counterfeit medicines industry continues to evolve, the adoption of blockchain technology offers a ray 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 is prepared to take advantage of this transformative technology, opening a path to a safer and more reliable future.
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