Big Pharma Blockchain: To Move the Big Guys with Big Prices
TechnologyBit News Today3 min read
It's no secret that blockchain has made a splash across industries in the past year, including healthcare and pharmaceuticals. Several pharmaceutical giants have conducted pilot programs and even launched dedicated ventures for blockchain-based measures. But this does not mean everyone is on board. Right now, there is a divide between Big Pharma and blockchain, even as the technology is potentially a plus for everyone.
First, let's look at the pluses. What makes blockchain a tantalizing proposition for pharma companies? The most pressing reason is transparency. Remaining competitive means accountability, and that means knowing the track and trace of all their products, from source to end user. Sure, this is already an established practice, but it requires a lot of manpower and resources. Blockchain immediately offers a more effective and efficient route.
It also admits fewer errors. Blockchain is basically a digital ledger, and in the context of pharma, it includes data on shipment, transactions and endorsements. Since it is built as an influx-technology, this means Big Pharma would be able to streamline data between all its departments, ensuring that there is one unified version of the truth for everyone. This would be especially significant for supply chains, which are notoriously complex and fragmented.
Lastly, there's the potential for increasing trust between pharmaceutical companies and patients. This has been a longstanding issue for the industry. If a company did not produce a clear and concise trail of their supply chain, patients could be understandably wary. With blockchain, the industry can create an unalterable record of their products' provenance, from cause to consumption. ## Challenges in adoption
However, for all these benefits, Big Pharma still seems reluctant to adopt blockchain. Why? For one, the cost barrier can be prohibitive, especially for smaller companies in the sector. Rooting out outdated systems and procedures can be expensive and time-consuming. It is a tall ask for smaller companies that may not have the cash reserves or investment to make such a big jump.
There's also the issue of navigating regulations. The healthcare and pharmaceutical industries are heavily regulated, and rightly so. Blockchain is a new technology, and has yet to be completely ironed out in terms of compliance with these regulations. It requires an additional level of scrutiny and due diligence that many in the industry are not prepared to undertake, at least right now.
Then there is the fact that there's yet to be a dominant platform that Big Pharma can easily adopt. While some are seeing the writing on the wall in terms of blockchain, there hasn't been a definitive consensus on which platform to choose. This is likely to change in the coming year, as the healthcare industry is expected to grow in terms of adoption of blockchain. In the meantime, it is something of a waiting game. ## The Future
However, for all these challenges, Big Pharma would do well to listen to all the noise around blockchain. The industry is just too big and important to ignore, and the benefits it stands to gain are too great to be overlooked. For all the skepticism and resistance, the technology does have the potential to improve transparency, trust and efficiency on all levels. As more companies find the right way to implement it, it is only a matter of time before blockchain becomes integrated into the mainstream of the industry.
