Calling for Security

In the May 2004 issue of Consumer Goods Technology, we reported on a developing story about the Pharmaceutical Industry RFID Group. Constructed by the Accenture consulting firm, this elite group is comprised of a powerhouse lineup of leading drug manufacturers, distributors and retailers including CVS Pharmacy, Johnson & Johnson, Pfizer, Procter & Gamble, Rite-Aid and more.

Real-World Pilot
The Group set out to learn more about the benefits of RFID across the pharmaceutical supply chain through a innovative pilot program set within a real, everyday environment and not within the confines of a controlled atmosphere. The Group looked at a number of general areas where RFID might be applied including materials management, inventory visibility as well as securing the pharmaceutical supply chain.

Calling for Security
For Pfizer, the pilot program was a very positive experience, according to Peggy Staver, planning director for supply chain at Pfizer."Our purpose in coming together was to find ways to secure the supply chain. Much of our focus was on how to enhance patient safety and protect patients from counterfeit pharmaceuticals," says Staver.

According to Staver, a report from the FDA last year highlighted the growing concern of counterfeit drugs. Non-technology solutions were mentioned in the report to aid in the fight against counterfeiting , many of which Pfizer already firmly believes in."It's a combination of enhanced business practices, additional wholesaler oversight, regulation," says Staver, who adds that the report also had a strong focus on RFID technology. "They specifically laid out some milestones for the pharmaceutical industry in terms of doing pilots in 2004 and putting tags on highly counterfeited items in 2005 and 2006 with an eye on widespread adoption in 2007," Staver continues.

New Initiative
In response, Pfizer announced late last year a new initiative to use RFID tags that will enable wholesalers and pharmacies to authenticate all of the Viagra sold within the United States. The project supports the FDA's aforementioned efforts to promote the development of standards and processes in preparation for RFID's broader use across the entire pharmaceutical industry. Pfizer has set a goal to start shipping Viagra with RFID technology by the end of next year.

A Safe Bet
Viagra was selected because it is one of the most recognizable and counterfeited medicines in the United States. The company will add passive RFID tags to cases and retail packages of Viagra at an estimated initial cost of several million dollars. Pfizer does not expect to achieve any cost savings at this point.
"We're putting a unique number on every item and case," says Staver. "For us, if we are trying to prevent counterfeiting, we have to tag at the unit level."

Ensuring Authenticity
Pfizer is currently working with all of its customers to map out a sufficient deployment timeline, in addition to identifying all of the cost benefits for broader implementation. Staver says an advance ship notice (ASN) will be sent to a customer who has purchased Viagra. They will know in advance of the shipment that they are receiving a unique set of Electronic Product Code (EPC) numbers, used to match up with the product when it arrives.

"The fact that our customers will have information on specific, individual bottles that they will be receiving and can electronically receive against that ASN, we should be able to tighten the security of the supply chain and prevent bad products from actually being distributed," explains Staver.