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Secure and transparent pharmaceutical supply chain

Sector: Tertiary sector · Industry: Hospitals and clinics · Organisation: Chronicled · Maturity level: Production

Chronicled operates the MediLedger network, a blockchain-based platform to improve transparency and traceability in the pharmaceutical supply chain. The system combats counterfeit medicines and automates processes with response times of less than 400 milliseconds. The solution has been in development since 2017 and is being used commercially to meet DSCSA regulations.

Documentation status

Description

MediLedger is the blockchain network from Chronicled (San Francisco) for the US pharmaceutical market, specifically for DSCSA compliance (Drug Supply Chain Security Act of 2013). The Hyperledger Fabric-based network connects all actors in the US pharmaceutical supply chain: manufacturers, wholesalers, pharmacies, hospitals. Every medicine carries a serial number, and every transaction is documented on the blockchain.

The DSCSA mandates that from November 2023 every unit of a prescription medicine must be electronically and interoperably traceable. MediLedger delivers exactly that: serialization data from manufacturers is documented upon shipment; every ownership change (manufacturer to wholesaler, wholesaler to pharmacy) is recorded on-chain. Pharmacists and hospital pharmacies can instantly check by scanning a serial number: Is this medicine genuine? Was it produced by an authorised manufacturer? Is there a recall? MediLedger network partners: Pfizer, Gilead Sciences, AbbVie, Merck (manufacturer side); McKesson, Cardinal Health, AmerisourceBergen (wholesale); CVS, Walmart, Kroger Pharmacies (pharmacies). After the NABP takeover (June 2023), the tool has been continued as a non-profit patient protection instrument. Pharmaceutical blockchain market 2023: Fortune Business Insights estimates a market volume of USD 1.4 billion, with growth of 65% per year.

Perspectives

B2B — organisations perspective

Hospitals and pharmacies can check incoming medicines for authenticity and recall status within seconds via MediLedger — instead of relying on manual document checks. DSCSA compliance is automated.

B2C — consumers perspective

Patients and consumers indirectly benefit from increased drug safety, as the system reduces the likelihood of counterfeit medicines on the market. Improved traceability can also lead to faster and more precise actions during recalls.

Employees perspective

Employees in supply chain and compliance can make their work more efficient through automated verification processes and real-time tracking. Reducing manual documentation tasks allows them to focus on more strategic and value-adding activities.

Benefits

General

B2B — organisations

Employees

Challenges

General

B2B — organisations

Employees

Technology foundation

The MediLedger network uses an authorised Ethereum Enterprise setup with zero-knowledge consensus, enabling secure and private data transmission between supply chain partners. This technology is particularly suitable as it ensures both the necessary transparency for traceability and data protection for business information.

Implementation examples

AmerisourceBergen blockchain recall optimisation

AmerisourceBergen wanted to replace the time-consuming and error-prone manual return processes with automated blockchain solutions. The goal was to increase transparency and reduce processing times.

AmerisourceBergen implemented a blockchain solution in April 2022 to improve return processes.

The pharmaceutical wholesaler AmerisourceBergen has been working with Chronicled since April 2022 to use blockchain technology to optimise return processes. This partnership aims to increase efficiency in handling returns and enhance transparency in transactions. The implementation is part of the company's broader digitalisation strategy in supply chain management.

The challenge was to automate complex return processes between different parties while ensuring data integrity. The blockchain solution enables all transactions to be documented in a traceable and tamper-proof manner.

Tags

Supply chain, Pharma, Traceability, Smart contract, Authentication

Sources

  1. MediLedger Supply Chain Pharmaindustrie
  2. Chronicled Recapturing Billions Through Blockchain
  3. Pharmazeutischer Blockchain Markt