Radio Frequency Identification (RFID) is technology that uses radio waves to transfer data for track-and-trace capabilities.
The capabilities of RFID are far-reaching for the pharmaceutical industry. It allows anyone in the industry—from a manufacturer to a distributor or a drug store—at any time, to know where products are in the supply chain.
How it Works
RFID works via a tag that is placed on each product for subsequent tracking. The product is then boxed up, packed into cases, and loaded onto trucks. Scanners track the tag on the product as it moves from location to location.
It doesn’t sound very different to bar codes, but it is. Here’s how:
• RFID tags do not need to be visible to the scanners (RFID readers) in order to be read. In fact, they can often be read from several feet away.
• RFID tags contain much more data than a bar code.
• RFID tags are all unique, so every single box or product has identifiers, as opposed to bar codes, which only reveal the brand and the type of package.
• RFID tags can be read in bulk, in a kind of parallel reading.
RFID Applications in the Pharmaceutical Industry
According to a presentation by Value Centric, a data management and performance analytics provider, the following will all be aided by RFID technology:
• Counterfeit/diversion prevention
• Electronic pedigree compliance
• Reduced medication errors
• Patient identification
• Continuity of care
• Provider, drug, dosage and patient validation
• Automatic identification and tracking
• Recalls/withdrawals management
• Inventory management
• Contract administration
• Sensors and telemetry
Barriers to RFID Implementation:
• The cost of the tags
• The cost of the technology to a pharmacy. A 2008 study by Accenture showed that cost to be $84,000 to $110,000 per pharmacy.
• Putting the infrastructure for RFID in place
• The question of who owns the data
• The question of who can access it
• Patient privacy concerns
• Noncompliance in the industry making roadblocks
Helping Curb Counterfeit Drugs with RFID
In addition to providing track-and-trace technology, RFID is also an invaluable tool in detecting counterfeit medicines, since every single product carries a unique tag.
Counterfeit drugs are a serious and growing threat in the United States, even though the problem is less here than in other countries. Counterfeit drugs are dangerous because they may contain inactive ingredients or incorrect, sub-potent or super-potent ingredients. Or they may contain improper dosages.
However, the practice of counterfeiting has increased in the U.S. in recent years, putting the health and the pharmacy chain at risk.
To implement RFID in the pharmaceutical industry, everyone—from manufacturers to distributors and pharmacists—needs to work together on this matter.