RFID and Pharma

One logical use of Radio Frequency Identification (RFID) technology is in the management of the drug supply chain. This article outlines the FDA’s position in support of the use of RFID and it’s stepped up efforts to track the sale and supply of drugs. In November 2004, the FDA published a policy compliance guide aimed at “increas[ing] the safety of medications consumers receive by creating the capacity to track a drug from manufacturer all the way to the pharmacy.” RFID allows for easy tracking of authentic drugs, by creating an “electronic pedigree—a record of the chain of custody from the point of manufacture to the point of dispensing."

Several drug manufactures have already “[placed] RFID tags on bottles” of pain medications and other controlled substances. With RFID technology in place the FDA has increased capabilities to track, monitor and prevent the sale of counterfeit drugs and to reduce the “diversion of prescription drugs” for illicit transcations.The FDA considers RFID’s capabilities as an “electronic safety net,” and  hopes “more firms will use RFID technology and gain experience with transferring, storing, and securing data that RFID provides.

The FDA's goal of bringing all drug manufacturers in compliance with RFID requirements however remains a challenge. Cost associated not only with production but further management of the supply chain using RFID, including handling recalls, remains a barrier. "RFID in the pharmaceutical industry set to explode from $90 million in 2006 to a staggering $2.1 billion by 2016, making RFID one of the fastest growing industries in packaging."

Howard notes an important difference between the food and pharmacheutical industries in implementing RFID: "The main difference between the food industry and the pharmaceutical industry is one of priority. The food industry is interested in placing RFID on pallets and cases at the request of the retailers, while the pharmaceutical industry is mainly interested in placing RFID on individual items, bottles and packages. Unlike the food industry its first concern is patient safety and wellbeing."