Pharmaceuticals slow to meet drug-tracking laws

17.01.2006
Pfizer Inc. last week unveiled plans to begin shipping its first drug product equipped with radio frequency identification tags to thwart theft and counterfeiting.

However, the company, along with many other drug firms, is still not prepared to meet the conditions of new legislation in two large states requiring that pharmaceutical firms trace prescription drugs as they move through the supply chain.

A new Florida law requires that by July 1, wholesale distributors operating in the state provide a so-called electronic pedigree system that can track drugs through the supply chain. A similar California law goes into effect Jan. 1, 2007.

While Pfizer is adding RFID tags to all packages of Viagra sold in the U.S. so that pharmacies and wholesalers can verify the authenticity of the drug, the application can't track and trace medicines through distribution channels in accordance with the laws.

In a statement, Pfizer said that extending its RFID program to comply with the e-pedigree laws would require that all parts of the supply chain invest in compatible technology. Each part of the chain would also have to agree to capture and share information about product movement, the statement said. Pfizer said it will further explore its use of RFID technology this year.

Despite facing deadlines to meet the Florida and California requirements, many other pharmaceutical firms have also been slow to create systems that can generate a pedigree, said Laura Ramos, an analyst at Forrester Research Inc.