Solving the Perils of Parallel Trade with ADLT? and the Blockchain

While parallel trade is legal in certain regions of the world, it can cause significant problems for biopharmaceutical companies and their patients. Medications are being arbitraged between lower acquisition priced markets and higher reimbursed markets. This generates higher profits for the wholesaler, lower profits for the biopharma company, and potentially denies patients ready access to lifesaving medications. The biopharmaceutical company can then generate millions of dollars in expenses in order to fulfill those orders while their wholesalers have little to no risk.

The underlying reason for these challenges is the information asymmetry between the biopharma company, wholesaler, and the pharmacies. While the wholesaler has a better understanding of the distribution patterns of products in a certain country or geographic area, the biopharma manufacturer does not. Likewise, the wholesaler faces a similar problem with the pharmacies it severs. This creates a competitive advantage for the wholesaler or pharmacies and makes manufacturing decisions and managing inventory levels for the biopharma industry a Herculean and expensive task. At the end of the day, it is the patient that is placed at the greatest risk due to possible delays in receiving their medication because of stock outs. While this problem may be more prevalent in certain regions e.g. EU, the underlying flaw in the system, lack of knowledge of demand patterns, is true regardless of the existence of parallel trade. Until the enactment of global Track and Trace regulations, this was an insurmountable problem.

Powered by the Blockchain, ADLT? (Advanced Digital Ledger Technology ?) by iSolve, provides a solution to this information asymmetry by creating a network of trusted partners where information flows freely and securely while establishing provenance of the data through the creation of immutable records. By being able to track medications to the pill level, manufacturers can gain visibility to the previously invisible demand patters and gain the ability to designate packages for a certain region based on that information. By monitoring the location of their serialized products, the manufacturer can know if medications were moved to another jurisdiction and potentially charge the wholesaler the acquisition price for that market or pass on any additional cost incurred if products needed to be drop shipped.

By manufacturers, wholesalers, and pharmacies working together, patients can be ensured of receiving the right medication at the right time and all players can benefit financially through this greater transparency by monetizing data of value to each trusted partner. ADLT? is the key to building a bridge between these organizations and combined with serialization ensures a successful transition from business silos to transparency throughout the supply chain.

If you would like to find out more about ADLT? or Blockchain Solutions for Pharma, contact us at [email protected] or visit us at www.isolve.io. Thanks and we look forward to speaking with you.

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