A Blockchain-based Drug Traceability Solution: a Case of Drug Counterfeiting in the Pharmaceutical Industry

Abstract

In recent years, poor quality and counterfeit drugs have penetrated the Pharmaceutical Supply Chain (PSC) at an increasingly alarming rate. One factor that has significantly contributed to this surge of fake drugs in the supply chain is the lack of traceability. Therefore, a need arises for the implementation of a solution that would ensure traceability i.e., the product’s journey would be visible to all stakeholders within the supply chain. This paper aims to address this problem using a blockchain network that accepts accurate tracking data for monitoring drug commodity movement history. Blockchain allows for distributed peer-to-peer networks where non-trusting members can interact with each other without a trusted intermediary, in a verifiable manner. It is also immutable. Specifically, this study aims at enabling consumers to verify the provenance of their medication. An exploratory sequential design was adopted for this study. A non-probability sample was used. Google forms were used to collect information from the respondents. A blockchain prototype was developed using the Design Science Research Methodology. Then, virtual interviews were conducted with participants to evaluate the system’s functionalities. The developed system traced a given product using its unique ID back to the manufacturer. That way, a product’s journey was transparent to all stakeholders within the supply chain. Feedback obtained from respondents suggests that traceability is likely to greatly contribute to reduced instances of counterfeit drugs in the market.