Increased RFID Use Poses Challenges for Drug Industry, Study Finds

Radio-frequency identification (RFID) use in the pharmaceutical industry is growing under state and federal mandates to secure the supply chain and prevent counterfeiting, but technology limitations and security weaknesses may slow full implementation, according to an ABI Research study, "The RFID Life Sciences Market," which looks at the driving forces behind adoption and RFID's benefits.

"With the industry losing $2 billion due to overstock and expiry, and $30 billion due to counterfeiting, there is an opportunity for RFID to right the ship," Sara Shah, an analyst with New York-based ABI Research, said. "Supply chain visibility and real-time data-driven supply chain information-sharing solutions can help troubled pharmaceutical makers, distributors and retailers to strengthen performance."

The report, which is scheduled for release on Feb. 19, discusses ongoing RFID market initiatives and implementation issues in the pharmaceutical industry, according to ABI Research. The study also includes a technology assessment with quantitative hardware, software and integration market forecasts through 2009, the company said.

The research looks at the FDA's RFID plans, as well as states' efforts to secure the supply chain with pedigree laws, Shah said. A pedigree is a legal document that tracks shipments from manufacturer to dispensing pharmacy, she said.

For more information on the ABI Research study, go to http://www.abiresearch.com/reports/RPH.html (http://www.abiresearch.com/reports/RPH.html).