- Study shows that blockchain in the US pharmaceutical industry is expected to save USD 180 million by offering an effective tracking system.
A study revealed that incorporation of blockchain technology in the drug supply chain could save the US pharmaceutical industry a whopping USD 180 million every year. The report is part of FDA’s Drug Supply Chain Security Act (DSCSA) Pilot Project Program. The aim of the aforementioned program is to develop an electronic, interoperable system that will effectively trace prescription drugs in the drug supply chain throughout the United States.
The need to verify prescription drugs has become essential as there are several cases of incorrect prescription dispensal. Every year, 7,000 to 9,000 people die as a result of a medication error in the US alone with additional expenses projected at USD 40 billion. LedgerDomain CEO and Founder, Ben Taylor told Cointelegraph that as much as 17% of the prescription drugs is dispensed incorrectly in the US. This calls for the development of a real-time drug verification system in compliance with the DSCSA’s standards.
To tackle this problem, UCLA Health is leveraging LedgerDomain’s blockchain application, BRUINchain to track and verify pharmaceutical drugs.
“By leveraging blockchain technology, BRUINchain is able to track and trace drugs as they move through a pharmacy while verifying the legitimacy of the drug with the manufacturer before being administered.”
With blockchain tech, the US pharmaceutical industry can save a staggering USD 180 million by cutting down labor costs alone. An additional USD 3.5 billion saving is estimated as the need for pharmacies to hoard drugs will reduce with an effective tracking system.
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