FDA Backs RFID Tags for Tracking Prescription Drugs

Calls for drug makers to use them on shipping pallets and cases by 2007

By Bob Brewin

February 23, 2004 12:00 PM ET

Computerworld - The U.S. Food and Drug Administration last week called for the widespread use of radio frequency identification technology to track the distribution of prescription drugs within three years, a plan that's expected to cost companies in the health care industry hundreds of millions of dollars, if not more.
In a report on its strategy for combating the spread of counterfeit drugs, the FDA said it views the use of RFID tags and readers as the best way for health care companies, hospitals and pharmacies to ensure that medicines are legitimate. The agency envisions a program under which prescription drug shipments will be assigned unique electronic product codes and RFID devices will be used to record data about all supply chain transactions involving the products.
RFID tags should start being used at the case and pallet levels throughout the pharmaceutical supply chain by 2007, the FDA said, adding that feasibility studies are scheduled for this year.
The National Association of Chain Drug Stores and some key drug makers and distributors announced their support for the FDA's plan, and a group of nine companies said they have signed a deal to have Accenture Ltd. serve as the program manager for a unified RFID effort.
Wal-Mart Stores Inc., which has mandated that its top suppliers begin using RFID tags on pallets and cases by next January, plans to adopt the wireless technology to track all the narcotics and other controlled substances dispensed by its pharmacies, according to the FDA.
A Wal-Mart spokeswoman said the retailer is working with 18 pharmaceutical suppliers to put tags on controlled-substance warehouse packs at a single distribution center by March 31. She didn't identify the companies involved in the effort nor the location of the distribution center.
San Francisco-based drug distributor McKesson Corp. said it believes that electronic tracking capabilities "will significantly enhance counterfeit-prevention efforts and negate the need for an ineffective and potentially fraudulent paper pedigree trail." McKesson added that it has already started to use RFID technology in its own distribution operations.
A Second Opinion


The FDA expects RFID tags to help in the fight against counterfeit drugs.

But Dr. Jean-Pierre Garnier, CEO of pharmaceutical maker GlaxoSmithKline PLC in London, sounded a more cautious note. Garnier said in a statement that his company's "long-term goal is the development of an electronic product code that will help track, trace and authenticate medicines through the whole distribution system." He added, though, that the RFID initiative "is a daunting technological task that could take at least three to five years."

Recommend Digg Twitter ShareThis

Email Print Send Feedback Reprints

Additional Resources

POLL RESULTS

Leading IT Pros Weigh In on Top IT Issues

Accelerate your knowledge of the IT world you inhabit by viewing the results of a series of polls taken by your IT peers. These polls of 100+ IT professionals each are available for full viewing. They cover key topics such as virtualization, processor performance, green IT, cloud computing and many others. Be a part of the buzz.

WHITE PAPER

For Best Results, Think Beyond the Box

Technology is complex. Keeping it running productively shouldn't be. To that end, you want to minimize the number of solutions needed in-house to simplify operations, maintenance, and support. Kodak offers a best-practices model. One company provides support for both scanner and software, for fast problem resolution without vendor finger-pointing. Download now!

WHITE PAPER

Accelerating the Path to Demand Intelligence with a Demand Signal Repository

Utilizing demand intelligence improves the precision of pricing, product assortments, channel/store placement, and promotion, which are all essential for sustainable revenue management performance. Learn more, download this free whitepaper today.

White Papers & Webcasts

Realizing Rapid ROI Through Mobility
Companies are reaping the benefits from mobile CRM, field service and sales force automation processes with the latest Research In Motion (RIM) offerings....

Usability Is Everything
Learn what sets Workday's HR and Payroll solutions apart from the competition....

CIO's Guide to Fixed Mobile Convergence
Organizations seeking solutions that provide high-performance access while addressing security needs can leverage fixed mobile convergence (FMC) systems to enhance communication. This document...

The Value of Real SaaS at Workday
Cost savings, speed to value, and innovation brought to the enterprise by Workday's software-as-a-service solutions for HR and Payroll....

SIP Trunking Is Key to Accelerating Unified Communications Deployments
Companies today are undergoing a significant transformation to a more global Anywhere Enterprise™. Unified communications (UC) is a crucial component in this evolution...

SaaS at Flextronics, Inc.
Dave Smoley, CIO of Flextronics, discusses the real value of software-as-a-service and why he chose Workday for his HR solution....

Seamless Communications: Simplicity, Efficiency, and Transparency Achieved Through Integrated Wireline and Wireless Services
This IDC White Paper provides analysis of the convergence between wireline and wireless technologies and the opportunities this evolution offers to enterprises looking...

Why Compliance Pays
This OnDemand webcast explores the relationship that firms with best compliance records have higher revenue, greater customer retention, lower financial losses from data...

BlackBerry ROI Calculator
(Source: RIM) This ROI calculator will help you work through the components of calculating an estimated ROI for the deployment of BlackBerry® in...

Agile Enterprise Content Management (ECM) for Rapid ROI
Find out how combining ECM and BPM will help adress issues about content rich business processes....

All White Papers | All Webcasts