RFID Prevents Counterfeit Drug Distribution
RFID Prevents Counterfeit Drug Distribution

Feb 28, 2019

The US Food and Drug Administration (FDA) estimates that up to 40% of pharmaceuticals shipped from Argentina, Colombia, and Mexico may be counterfeit. The FDA is investigating more cases that involve well-organized criminal operations working to introduce finished counterfeit drugs that resemble legitimate drugs that may contain only inactive or incorrect ingredients, improper doses, or be otherwise contaminated. These fake, diluted, and mislabeled medications pose a health threat to patients and a financial risk to manufacturers. The FDA is working with pharmaceutical suppliers to keep the US drug supply security in the face of increasing criminal efforts to introduce counterfeit drugs. They believe that pharmaceutical manufacturers and suppliers should be using modern, comprehensive security protections to keep pace with increasingly sophisticated threats.  [1]

The best technical solution is to use radio-frequency identification (RFID) with electronic product code (EPC) technology for the electronic tracking, tracing, and authenticating of pharmaceuticals. RFID technology uses small electronic devices that contain antennas and chips that create an electromagnetic field. Instead of using a generic tag, RFID has been taken a step further using RFID-EPC, which is like the SKU, but the code, or EPC-enabled serial number, is inside a tag or label that’s permanently affixed to the item. This gives the item the identification needed to prove that it’s authentic. As this technology becomes more prevalent, it will be a significant hit to the counterfeit item market.

RFID-EPC Tracks Supply Chains

When pharmacies receive a shipment, they can search for the EPC number in their database and see data about the shipment. If the drugs don’t have a serial number, or the serial number doesn’t match what the company said is shipped, the product could be counterfeit. If two cases have the same code or other discrepancies appear, it’s obvious that someone has tampered with the shipments or products. The authorities could use the audit trail created when tags are read at each shipping point in the supply chain to track where counterfeit drugs entered. RFID tracking could improve the integrity of a supply chain. By clearly identifying and tracking products, cartons, and pallets, companies can maintain much tighter control over legitimate shipments and ensure they aren’t hijacked or stolen.

This can prevent products from falling into the hands of counterfeiters, who could dilute or alter the drugs and then foist them on unsuspecting pharmacies and consumers. The appeal of RFID-EPC technology is the ability to identify individual products throughout the supply chain and create seamless visibility. The FDA suggests that using EPC tags on packages could help identify counterfeit drugs. The tags would contain license plates that would identify a manufacturer, describe the product, and include a unique serial number. Legitimate drug manufacturers overseas would tag their products; US customs agencies and distribution companies would scan the tags and check a database to verify the shipment’s origin.

The system could be used domestically as well. Before RFID-EPC existed, a simple barcode identified a type of item and not a specific item. Without RFID-EPC, a person can create a name-brand prescription and duplicate the barcode, and the buyer is unaware of the authenticity of that item. With an EPC tag, the brand owner assigns an identification number that’s unique to each item. This number is stored in a database. When a pharmacist receives the items, it can scan the medication into their system and ensure that each item is authentic. The goal is for every party along the supply chain to scan items and identify them in this universal EPC system.

RFID-EPC for Pharmaceuticals

Major pharmaceutical companies are already exploring the possibility of using EPC tags on drug shipments. While the price of the tags, still at least 50 cents for orders of less than a million pieces, is an inhibitor for other industries, it’s less so for drug companies. Most often, the containers of drugs shipped to pharmacies cost thousands or tens of thousands of dollars. Preventing the infiltration of counterfeit items would have a positive economic impact on legitimate companies since they would sell their products as intended to their target consumers. If an item is counterfeit, there’s no way for a consumer to know that the item is safe. This applies to prescription drugs, toys, and even jewelry. Plus, consumers know that they are getting a quality product that’s worth the price they paid.

Counterfeit items don’t possess the quality of an authentic item. All in all, RFID technology has become critical in the security of items in the pharmaceutical sector. With the worldwide adoption of EPC, it’s expected that it’ll be more difficult for counterfeiters to place their copycat items on the market, especially as the presence of these items and details about them are tracked across multiple sectors throughout the world. Over time, this could be what’s needed to squash the counterfeit market. Syrma has already successfully deployed RFID anti-counterfeiting solutions to safeguard the authenticity of pharmaceuticals shipped around the world. We look forward to collaborating with clients to develop more applications that incorporate our tags, readers, and software to protect brands, retailers, and consumers.

Backed by 40 Years of Expertise

We contribute our 40 years of design and manufacturing expertise spanning multiple diverse markets. We look forward to discussing how we can deliver world-class products for OEMs across the globe. We understand our home Indian market, familiar with its vast regulatory and selling environments. We foster growth opportunities within India through our strong technology incubation ecosystem. We also assist global OEMs in entering the Indian market by leveraging the local supply chain and favorable operating environments for cost reductions.

Our flagship Chennai location opened in 2006 and lies within a Special Economic Zone (SEZ) for electronics manufacturing, offering economic incentives for imports and exports. This primary facility is within 90 minutes of the Chennai seaport and 20 minutes to the international airport. Additional road and rail connectivity links to the rest of India and beyond and infrastructure advantages with faster import and export clearances. We also have labor force flexibility, both technical and manual, to scale to demand rapidly.

To learn more about this topic, please contact us.